Opinion ID: 2197252
Heading Depth: 1
Heading Rank: 4

Heading: Attorney's Authority to Settle

Text: Turning to the merits, the controlling legal principles are quite settled. The authority of an attorney to represent a client in litigation is separate from and does not involve the authority to compromise or settle the lawsuit. An attorney who represents a client in litigation has no authority to compromise, consent to a judgment against the client, or give up or waive any right of the client. Rather, the attorney must receive the client's express authorization to do so. Danziger v. Pittsfield Shoe Co. (1903), 204 Ill. 145, 149-50, 68 N.E. 534; McClintock v. Helberg (1897), 168 Ill. 384, 391-92, 48 N.E. 145; see Colvin v. Hobart Brothers (1993), 156 Ill.2d 166, 176-77, 189 Ill.Dec. 407, 620 N.E.2d 375 (Harrison, J., dissenting). Where a settlement is made out of court and is not made a part of the judgment, the client will not be bound by the agreement without proof of express authority. This authority will not be presumed and the burden of proof rests on the party alleging authority to show that fact. ( Danziger, 204 Ill. at 149, 68 N.E. 534.) Further, in such a case, opposing counsel is put on notice to ascertain the attorney's authority. If opposing counsel fails to make inquiry or to demand proof of the attorney's authority, opposing counsel deals with the attorney at his or her peril. McClintock, 168 Ill. at 392, 48 N.E. 145. However, [w]hile an attorney's authority to settle must be expressly conferred, the existence of the attorney of record's authority to settle in open court is presumed unless rebutted by affirmative evidence that authority is lacking. (Emphasis added.) Szymkowski v. Szymkowski (1982), 104 Ill.App.3d 630, 633, 60 Ill.Dec. 310, 432 N.E.2d 1209 (and cases cited therein); see Brooks v. Kearns (1877), 86 Ill. 547, 551. In the present case, the trial court erroneously relied on the presumption that plaintiff's attorney spoke for plaintiff on the issue of plaintiff's resignation. The record contains affirmative evidence, in the form of affidavits, that plaintiff did not expressly authorize his attorney to agree that plaintiff would quit his job. Thus, the trial court could no longer presume that plaintiff's attorney spoke for plaintiff on this point. In affirming the trial court, the appellate court did not address these principles or this necessary conclusion. Rather, the appellate court erroneously assumed that such express authorization existed. Having made this assumption, the appellate court discussed the legal principles that pertain to an attorney binding the client to a settlement agreement (256 Ill.App.3d at 1087-88). However, as courts have explained, an attorney's general authority to represent the client in litigation does not extend so far as to permit the attorney to waive the rights of the client. See Kazale v. Kar-Lee Flowers (1989), 185 Ill.App.3d 224, 227, 133 Ill.Dec. 382, 541 N.E.2d 219; Knisley v. City of Jacksonville (1986), 147 Ill.App.3d 116, 120, 100 Ill.Dec. 705, 497 N.E.2d 883; County of Cook v. Patka (1980), 85 Ill.App.3d 5, 11, 40 Ill.Dec. 284, 405 N.E.2d 1376. In sum, the record contains affirmative uncontradicted evidence that plaintiff did not expressly authorize his attorney to agree that plaintiff would quit his job. The record does not contain any facts that show that plaintiff authorized his attorney to compromise this point. Accordingly, we must reverse the judgments of the trial and appellate courts. For the foregoing reasons, the judgments of the appellate court and the circuit court of Cook County are reversed, and the cause remanded to the trial court for further proceedings consistent with this opinion. Judgments reversed; cause remanded.