The Settlement Call, the Verification, and the Cash Retainer
Renata is a paralegal at a three-attorney firm. Her supervising attorney, Ms. Okafor, is in a two-day arbitration and has asked Renata to “keep things moving.” Maria Delgado, a client in an employment-discrimination case, calls at 4:40 p.m. on Thursday. Interrogatory responses are due Monday at 5:00 p.m.; Maria has not signed the verification. Maria asks Renata three things: whether she should accept the defendant’s $18,000 settlement offer or “hold out for more,” whether Renata can sign the verification for her because the attorney is unavailable, and whether Maria can simply skip the interrogatories because “they are none of their business.” Maria also says she will pay the outstanding $1,500 balance in cash tomorrow and asks Renata not to tell the attorney about a prior bankruptcy. Renata has two years of experience and is not a lawyer. The firm has no written policy on client settlement calls.
1. Which of Maria’s requests may Renata handle, and which must she decline? Write the response Renata should give on the settlement question and the verification request.
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Renata must separate logistics from legal advice.
- Settlement: She may not evaluate the offer or tell Maria to accept or reject; that is the attorney’s call under Rules 1.2 and 5.5. She can say: ‘I can’t advise you on the settlement. I will relay your question to Ms. Okafor and ask her to call you before Monday. Please do not treat my silence as advice.’ She should document the call.
- Verification: A verification is the party’s sworn adoption of discovery responses. Renata cannot sign it for Maria, and the attorney’s absence does not change that. Signing would be forgery and could expose the firm to sanctions. Renata may explain that Maria must review and sign before a notary; if the firm’s notary is used, check that the notary has no disqualifying interest.
- Skipping interrogatories: Renata must not advise ignoring discovery. She can explain the deadline and that nonresponse can lead to sanctions, but the decision belongs to the attorney and client.
She should escalate to another attorney in the firm if Ms. Okafor is unreachable.
2. What should Renata do about the Monday discovery deadline and the unsigned verification, given Ms. Okafor’s absence?
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First, confirm the actual due date from the scheduling order and service date, and calendar it with a reminder. Do not wait for Ms. Okafor.
- Prepare the responses in draft, but do not sign, verify, or serve them without attorney review.
- Contact another firm attorney for supervision and have that attorney review the draft and the verification issue.
- With attorney approval, ask opposing counsel in writing for a short extension before the deadline; do not state a false reason or promise a date the firm cannot meet.
- Tell Maria that the verification must be signed by her and arrange a notary; do not let her sign a blank or unread verification.
- If no extension is granted and no attorney is available, the firm must decide whether to file a timely draft with objections and supplement later, but that decision cannot be made by a paralegal.
- Preserve the call log and all drafts; do not backdate anything.
3. How should Renata handle the cash payment and Maria’s request to conceal the bankruptcy?
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Cash: follow the firm’s trust-account and receipt policy. The $1,500 balance is client funds; it should be deposited into the firm trust account and applied only as earned, with a receipt. Cash transactions over $10,000 may trigger IRS Form 8300, though this payment is below that threshold; do not commingle it with operating funds or put it in a desk drawer. Tell Ms. Okafor promptly.
Bankruptcy: Renata cannot promise to keep this from the attorney. Confidentiality under Rule 1.6 protects information from outsiders, not from the lawyers handling the matter. A prior bankruptcy may affect damages, credibility, or discoverability, and the attorney needs it. Renata should say: ‘I can’t agree to keep this from your lawyer; I will share it with the legal team, and she will discuss how it affects the case.’ She should not disclose it to opposing counsel or anyone outside the firm. Document both conversations.