Nelson v. Consumers Power Co.

This case presents the surprisingly novel issue whether an attorney, acting solely in the interest of a client and without any improper motives, has the apparent authority to settle a lawsuit on behalf of the client. We hold that attorneys do possess such authority and, accordingly, affirm the judgment of the circuit court.

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On June 6, 1988, plaintiff, America E. Nelson, M.D., filed suit against defendant, Consumers Power Company, to recover damages for injuries she allegedly sustained in a motor vehicle accident involving a Consumers Power vehicle. Although plaintiff filed her initial…