City of Gary v. Conat, decided on June 29, 2004 by the Indiana Court of Appeals, states a warning for any attorney involved in court ordered mediations. In a court ordered mediation, if an attorney settles a claim as to which the attorney has been retained the settlement is binding between the third party and the client, even if the client did not give consent, because the attorney will be considered to have inherent power under the Indiana Rules for Alternative Dispute Resolution. Therefore, if the attorney acts contrary to the express directions of his client, the client cannot ask a court to not enforce the settlement, but can look only to the attorney for redress.
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June 30, 2004
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