Lawyers as Agents

Abstract

This article addresses the nature and effect of the agency relationship that exists between a lawyer and his client. There are two aspects of this, the internal relationship and its external effects. Under the first heading are considered the duties of the lawyer towards his client, including his fiduciary duties, which have recently been broadened, and the obligation of the client to pay his lawyer. The external aspect of a lawyer's role as agent for his client raises the issue of the agent's authority which may be express, implied or apparent. The scope of that authority is vital. It is analysed in respect of two different situations. The first is where no litigation is involved, but the lawyer is required to deal with money on behalf of the client, contracts within the Statute of Frauds, or notices. The second relates to the conduct of litigation. A number of important issues arise in this respect, of which the most important is the authority of a lawyer to compromise or settle an action. This is considered in some depth with special reference to English and Canadian cases, in order to elucidate the extent to which and grounds upon which a lawyer may validly affect his client's position.