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Litigation glossary
Legal structure

Aggregate Settlement Rule

The legal ethics rule requiring individual informed consent from every client before a lawyer settles multiple clients' claims together in one deal.

Model Rule of Professional Conduct 1.8(g), adopted in some form in most states, prohibits a lawyer representing multiple clients from participating in an aggregate settlement of their claims unless each client gives informed consent in writing, after being told the existence and nature of all the claims involved, the total amount of the settlement, and the share each client will receive.

The rule exists because aggregate settlements create an inherent conflict: a lawyer negotiating a lump sum for many clients at once has an incentive to trade a lower amount for one client in order to close the deal for the group as a whole, and clients cannot meaningfully consent to that tradeoff without seeing the full picture.

Juricratic flags aggregate-settlement structures as carrying real allocation risk distinct from the headline settlement figure — in a simulation of a mass tort resolution, the rule requires disclosure that the modeled claims-matrix allocation itself must be transparent to every individual claimant before the deal can close.

In litigation

How it actually shows up

Plaintiffs' firms resolving large blocks of mass tort claims through a private settlement build detailed disclosure packages for each client — showing the aggregate deal terms and the individual allocation formula — to satisfy Rule 1.8(g) and avoid a later ethics or malpractice challenge to the settlement.

Questions
What must a lawyer disclose under the aggregate settlement rule?
The existence and nature of all claims or pleas involved and the participation of each person in the settlement, including the total amount and each client's specific share, before obtaining written informed consent.
Does the aggregate settlement rule apply to class actions?
No — it applies to a lawyer's individually retained clients settled together outside the class mechanism; class action settlements are governed instead by Rule 23's court-approval process, which serves an analogous protective function.
What happens if a lawyer violates the aggregate settlement rule?
The lawyer can face professional discipline and the settlement itself can be subject to challenge or unwinding by affected clients who did not give the required informed consent.

This page is an educational explainer, not legal advice, and creates no attorney–client relationship. Juricratic is a simulation engine: every probability-like figure is a dial you set, not a calibrated prediction. Verify every rule, deadline, and figure against the authorities and orders that govern your matter.

Turn the concept into a modeled matter.

Juricratic makes every one of these ideas a live dial: model your case as a solvable game, then watch the optimal line and the settlement window move as the assumptions do.

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simulation, not prediction — not legal advice