Which statement correctly reflects the obligation to encourage settlement in ADR?

Which statement correctly reflects the obligation to encourage settlement in ADR?

• A. There is no obligation to attempt settlement.
• B. Only if the client requests.
• C. Encourage settlement even if it harms client.
• D. The obligation is to encourage settlement where reasonable.

Answer: (D)

In ADR, there is a duty to encourage settlement when doing so is reasonable and aligned with the client’s interests. ADR aims to resolve disputes efficiently and avoid unnecessary litigation, so a lawyer should proactively discuss settlement options, explain potential benefits and risks, and encourage the client to consider settlement negotiations if it makes sense given the facts, the strength of the case, costs, and the client’s objectives. This duty isn’t about pressuring the client to settle at any cost or only acting if the client asks; nor should it push for a settlement that would harm the client. The phrase “where reasonable” captures balancing the benefits of settlement against the client’s best interests, ensuring you promote ADR when it’s appropriate but never at the expense of the client.

In ADR, there is a duty to encourage settlement when doing so is reasonable and aligned with the client’s interests. ADR aims to resolve disputes efficiently and avoid unnecessary litigation, so a lawyer should proactively discuss settlement options, explain potential benefits and risks, and encourage the client to consider settlement negotiations if it makes sense given the facts, the strength of the case, costs, and the client’s objectives. This duty isn’t about pressuring the client to settle at any cost or only acting if the client asks; nor should it push for a settlement that would harm the client. The phrase “where reasonable” captures balancing the benefits of settlement against the client’s best interests, ensuring you promote ADR when it’s appropriate but never at the expense of the client.