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In this lesson, you are given tips on settlement negotiations, how to identify mutual goals, and how to determine your options.
Making and evaluating settlement offers
- Don’t talk to the other side about settling until you know how much you’ll settle for, what your chances are of winning, and the degree to which you want out of the case.
- Research your opponent and ask questions. What are your concerns? What do you want to happen?
- All sides involved in a negotiation must have the capacity to weigh choices and make decisions. You have options based on the strength of your case, case law, cost of continuing to litigate, and more.
- Understand your case and consider a wide range of outcomes or options.
- Avoid a situation where one side can get their needs met without negotiating with the other side.
- Develop a hierarchy of desired outcomes and alternatives, and try to reach an agreement within your limits.
- Leave some wiggle room to negotiate down from the upper limit of what you will settle for and up from your lower limit.
- It’s okay to start negotiations at the upper limit, but don’t refuse to adjust.
- Evaluate the quality of an offer by the limits you’ve set.
- Base your limits on the strengths and weaknesses of your case, and make them realistic.
- You might want to settle, but don’t appear too eager. Communicate to your opponent that you’re willing to go to trial if need be. Follow this up with discovery, filings as appropriate, as if you’re going to trial.
- You don’t want to leave negotiations feeling as if you settled for less than the case was worth or you paid for something you shouldn’t have. So you want to understand the value of the case by determining the possible outcome of litigation and balancing that with the needs, strengths, and weaknesses of each side.
Transcript
After a hearing in which you won on your motion, the attorney for the opponent asks you what you want in settlement.
Chances are he\’s thought about it a lot and knows what his client will settle for and why.
You\’ve thought about a settlement, but not strategically. You\’re physically in the game, but not mentally. Don\’t answer yet.
Make an excuse and get back to him when you know how much you\’ll settle for. What your chances are of winning and the degree to which you want out of your case.
In short, be there mentally and physically.
If possible, research your opponent and ask questions.
What are your concerns?
What do you want to happen?
If you\’re up against Bank of America in a foreclosure case, you know enough about them to realize that they may settle for a deed in lieu rather than continue litigation.
It might be cheaper for them, especially if you\’re a very capable pro se litigant.
All sides involved in negotiation must have the capacity to weigh choices and make decisions.
You have options based on the strength of your case, case law, cost of continuing to litigate, and more.
Understand your case and consider a wide range of outcomes or options.
It\’s important to not let one party dominate.
Avoid a situation where one side can get their needs met without negotiating with the other side.
Develop a hierarchy of desire outcomes and alternatives, and try to reach an agreement within your limits.
Leave some wiggle room to negotiate down from the upper limit of what you want to settle for, and up from your lower limit.
It\’s okay to start negotiations at the upper limit, but don\’t refuse to adjust.
Evaluate the quality of an offer by the limits you\’ve set. Based your limits on the strengths and weaknesses of your case, and make them realistic.
If the value of the entire case is ten thousand, don\’t set a limit above this amount.
There\’s no better signal to the other side that you don\’t know what you\’re doing.
The vast majority of legal cases never reach trial. So settlement is the norm.
You might want to settle, but don\’t appear too eager, communicate to your opponent that you\’re willing to go to trial if need be.
Follow this up with discovery and filings as appropriate as if you\’re going to trial.
That way, you have leverage when you negotiate.
You don\’t want to leave negotiations feeling as if you settled for less than the case was worth, or you paid for something you shouldn\’t have.
So you want to understand the value of your case by determining the possible outcome of litigation and balancing that with the needs strengths, and weaknesses of each side.
If for instance, the plaintiff\’s claim is very strong, The settlement value will be higher than if the defendant\’s case is strong.