Nebraska Supreme Court opinion holds that lawyer who signs client’s settlement agreement cannot be held liable for its breach

Hello and welcome to this JACPA Ethics Alert which will discuss recent Nebraska Supreme Court opinion which held that a lawyer who signs a settlement agreement under the legend, “Agreed to in Form & Substance,” was not liable for breach of the payment terms because the language and circumstances surrounding the agreement did not indicate that the lawyer intended to be bound to the agreement.  The case is RSUI Indemnity Company v. Bacon, ___N.W.2d___, 2011 WL 4502296 (Neb. 2011).  A PDF version of the opinion is attached.

In RSUI Indemnity Company, Bacon was injured on a construction site.  He sued, inter alia, his employer’s insurance company.  Bacon and the insurance company settled the claim and he and his lawyer signed the settlement agreement under language stating “Agreed to in Form & Substance”.  A dispute then arose regarding payment terms under the agreement, and the insurer sued Bacon and the lawyer for breach of contract.   Surprisingly, the trial court held that both the Bacon and the lawyer were potentially liable for any alleged breach.

The lawyer appealed, arguing that he could not be held liable as a matter of law for a potential breach.  The Nebraska Supreme Court reversed the trial court and held that the lawyer was not bound by the agreement and could not be found liable for a claim for an alleged breach of the payment terms.  The opinion looked at the language of the settlement agreement, which referred to both the lawyer who signed the agreement and another lawyer from the same firm who had not signed the agreement.

Since the insurance company conceded that the lawyer who did not sign the agreement was not bound by the agreement, the opinion then analyzed the question of whether the other attorney’s signature below the language stating “Agreed to in Form & Substance” (and there was also additional language stating that the two named lawyers would pay a “sum of money” if the agreement was breached) showed any intent to be bound.

The opinion held that the circumstances surrounding the signature did not indicate any intent by the lawyer to incur personal liability and noted that the insurer’s lawyer also had signed the agreement and nothing in the contractual language could be construed to impose liability on that lawyer.  The opinion also noted that the language was not clear regarding any intent of the lawyer to be bound by its terms.

Bottom line:  The lawyer in this case was found potentially liable by a trial court for an alleged breach of the settlement agreement between his client and the defendant.  Although the finding of potential liability was reversed on appeal to the Nebraska Supreme Court, the lawyer most likely incurred fees and expenses pursuing the appeal.

This opinion might provide some assurance to lawyers who approve and execute settlement agreements with “Agreed to in Form & Substance” language or the equivalent; however, it also shows the risk that lawyers may incur by executing settlement agreements with this type of language (and also language that may be construed to state that the lawyer agrees to pay if the agreement is breached).

…and be careful out there!

As always, if you have any questions about this Ethics Alert or need assistance, analysis, and guidance regarding these or any other ethics, risk management, or other issues, please do not hesitate to contact me.





My law firm focuses on review, analysis, and interpretation of the Rules Regulating The Florida Bar, advice and representation of lawyers in Bar disciplinary matters, defense of applicants for admission to The Florida Bar before the Board of Bar Examiners, defense of all Florida licensed professionals in discipline and admission matters before all state agencies and boards, expert ethics opinions, and practice management for lawyers and law firms.  If there is a lawyer or other Florida professional license involved, I can defend the complaint or help you get your license.

If you have any questions or comments, please call me at (727) 799-1688 or e-mail me at  You can find my law firm on the web at In addition to handling individual cases, matters, problems and issues for my clients, I also am on retainer to provide ethics advice to numerous lawyers and law firms throughout the state of Florida.  I also provide legal assistance and advice to numerous individuals and non-legal entities to help insure compliance with the law and rules related to UPL and other issues.

Disclaimer:  this e-mail does not contain any legal advice and the comments herein should not be relied upon by anyone who reads it.

Joseph A. Corsmeier, Esquire

Law Office of Joseph A. Corsmeier, P.A.

2454 McMullen Booth Road, Suite 431

Clearwater, Florida 33759

Office (727) 799-1688

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About jcorsmeier

Joseph A. Corsmeier is an “AV” rated attorney practicing in Clearwater, Florida. He concentrates his practice primarily in the areas of defense of attorney disciplinary matters before The Florida Bar, attorney admission matters before the Florida Board of Bar Examiners, and professional license and disciplinary matters before the Boards of the State of Florida. He provides expert analysis and opinion on conflict of interest and other attorney disqualification and legal malpractice issues and he testified as an expert in the Florida courts. He served as an Assistant State Attorney in the Sixth Judicial Circuit from 1986 to 1990 where he prosecuted felonies exclusively from June 1987, and as Bar Counsel for The Florida Bar’s Department of Lawyer Regulation from 1990 to 1998. He also practices in the areas of estate planning and Medicaid qualification, workers’ compensation, and labor law. Mr. Corsmeier is the author of numerous articles for various bar publications, has spoken at numerous local and statewide seminars on various topics, including ethics and professionalism, and was an instructor of legal ethics for paralegals at Rollins College until the Tampa campus closed. He received his undergraduate degree from Florida State University and his J.D. from Mercer University. He is admitted to practice in all Florida Courts, the Supreme Court of the United States, the United States Court of Appeals for the Eleventh Circuit, and the Middle District of Florida. He is a member of The Florida Bar, American Bar Association, the Association of Professional Responsibility Lawyers, and the Clearwater and St. Petersburg Bar Associations.
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