How Do Legal Professionals Successfully Negotiate Settlements to Avoid Lengthy Litigation?
Legal professionals have mastered the art of negotiating settlements to avoid lengthy litigation. This article delves into real-world examples of successful conflict resolution, from medical partnership disputes to car dealership conflicts. Drawing on insights from experts in the field, readers will discover how strategic mediation and direct communication can expedite legal resolutions.
- Emotions First Approach Resolves Medical Partnership Dispute
- Car Dealership Conflict Settled Through Strategic Mediation
- Direct Communication Expedites Legal Resolutions
Emotions First Approach Resolves Medical Partnership Dispute
One particularly rewarding negotiation involved a contentious partnership dispute within a medical group, stemming from a long-standing physician partner's departure and disagreements over equity valuation and non-compete clauses. The alternative was a full-blown, highly damaging lawsuit that would have been financially and reputationally devastating.
We facilitated a vulnerable conversation for the physicians, mediated by a separate independent therapist in addition to the lawyers. This conversation was specifically designed to address their emotions first. There was about 1 hour of intense verbal confrontation, including yelling and name-calling, which gradually evolved into more productive negotiations. Eventually, the physicians reached an agreement, much to the lawyers' amazement. We used the threat of substantial legal fees and unpredictable litigation as a motivating factor for settlement.
Car Dealership Conflict Settled Through Strategic Mediation
In my capacity as a mediator and arbitrator of franchise disputes, I mediated a dispute between a customer of a car dealership, the dealership, and the manufacturer of a vehicle relating to the purchase of a high-performance vehicle. The customer had endless problems with the vehicle and decided to return it, but the dealership would not accept the vehicle because it was under the manufacturer's warranty. The customer refused to make any further payments under the purchase agreement and simply abandoned the vehicle. The customer sued for damages, and the dealer counterclaimed for payments owing and damages. The manufacturer disclaimed any liability to the customer other than continuing to repair the vehicle.
After several hours of trying to reach a resolution, I met with each of the parties in private and eventually convinced the manufacturer to contribute to the settlement and the dealer to reduce the amount they were seeking and take back the vehicle. By convincing each of the parties that the amounts involved were not that significant compared to the cost of litigating this case between three parties, each party agreed, and a settlement agreement was executed between all three.
The lesson learned for a mediator is to listen carefully to all parties and discuss their options, which in many cases are better than litigating. Of course, the lawyers involved must also be practical in advising their respective clients rather than encouraging a long, costly, and uncertain lawsuit. Also, a settlement agreement or terms of settlement should be reduced to writing at the end of the mediation or as soon as possible afterwards.
Direct Communication Expedites Legal Resolutions
You've surely played the party game, Telephone. Information spoken at one end of a chain of people comes out differently at the other end. Litigation can be like that. Often, the actual parties have not been correctly informed about the case, including opportunities for settlement. As a mediator, I have settled many, many cases when all the real parties in interest are in the same room with their representatives. Sometimes I am the bearer of bad news which was previously withheld. I am able to ask questions and convey accurate information to move the parties to settlement without unnecessarily inflaming emotions, thereby shortening what would have otherwise been lengthy, expensive, stressful litigation.
