What is an “aggregate settlement”? The Oregon Supreme Court held that interdependence between claims is required

The Oregon Supreme Court has held that the aggregate settlement rule, ABA Model Rule 1.8(g), applies when interdependence between client claims exists. A settlement offer that aggregates minimum authority obtained from clients individually is not an aggregate settlement.

By doing that the Court adopts § 3.16 of the ALI the ALI Principles of the Law of Aggregate Litigation:

Definition of a Non–Class Aggregate Settlement

(a) A non-class aggregate settlement is a settlement of the claims of two or more individual claimants in which the resolution of the claims is interdependent.

(b) The resolution of claims in a non-class aggregate settlement is interdependent if:

(1) the defendant’s acceptance of the settlement is contingent upon the acceptance by a number or specified percentage of the claimants; or

(2) the value of each claim is not based solely on individual case-by-case facts and negotiations.

In re Gatti,  No. S061105, Oregon Supreme Court 8/21/14.  Full opinion here

For more information, contact Nathan M. Crystal