TIPS ON SETTLEMENT OUT OF COURT

Assume you are not the stakeholder,  How can you settle your case? It's an art. Here are some suggestions.

When. Either when the other side suggests or when you are pretty sure you have a superior bargaining position. That probably means the courthouse steps. The stakeholder has the superior bargaining position 90% of the time. Look for ways it is in the stakeholder's best interest to settle. Most likely you just have to be patient,

Bargaining position.  Know your bargaining position and enhance it.  Don't enhance it by bluffing (see below).  Know the opposing party's strengths and weaknesses and be equally circumspect about your own.  Get outside expert witness help.  Listen to them about the relative positions.  Set a realistic goal based on your position.  Don't negotiate until you have enhanced your position to the maximum. 

Preparation.  Prepare, prepare, prepare.  Hire experts to help.  You can significantly increase your bargaining position by intensive preparation.  Exhaust this one.  The side that is the best prepared will always come out with a good result.  To win the battle of the experts, document, document, document.  Rehearse, do mock negotiations and hire a mediator to critique your approach.

Bluffing.  Don't.  Two problems.  You probably are lying and the other side most likely will think so.  And, the other side may well call your bluff or completely ignore it as if you have not made it.  Taking an extreme position is nonsense.  A reasonable person on the other side will just ignore you.  You must have integrity and nothing kills that like bluffing.

Splitting the difference.  This is time honored.  But there is a time and a place for it.  Always split the difference when the positions are close.  Never even think about it when the positions are far apart.  This is always the last resort.  Offering to split the difference must be made when the negotiations have been exhausted.

Honesty and sincerity.  At the foundation of the art is a negotiator who has a reputation for honesty and sincerity.  You have to be believable.  The other side must know that you tell the truth and that you are candid and forthcoming.  This also means you are not given to game playing and tricks commonly associated with used car salesmen.

In the end, success may well include other factors.  But you are unlikely to succeed without following these five fundamental principles.

bill@spriggslawgroup.com