Fair settlements are always better than expensive and time-consuming lawsuits. We understand at Smokeball that your time is valuable. But delivering a win-win settlement to clients requires a mastery of the basics of negotiation. Let’s take a look at how you can achieve the best settlement outcomes for even your most difficult cases.   

Get Accurate Information

Crafting a powerful settlement requires you to get accurate, relevant, and timely information.  Review the details of the case carefully, sifting out fact from fiction. Using only the facts as your foundation, create a negotiation strategy that will help you figure out the following about the opposing side:

• The true objective of the opposing side. What is it that the opposing side really wants? While the case may state one thing, your discussion with the opposing side may reveal that they have underlying motives they have not been candid about. If you can identify what their true objective is, you can craft a settlement offer that gives them at least some of what they want.
• The opposing side’s vision of success.  What is it that the opposing side needs to get out of a settlement in order for them to consider the offer a win?  For example, if they’re an injured party in a vehicle collision, maybe a good settlement offer would cover their hospital bills and lost time at work. Once you can figure out what the bottom-line success vision is for the opposing side, you can offer a settlement that’s more likely to get accepted.
• The opposing side’s options.  What does the opposing side stand to lose (or gain) if no settlement is reached?  Do they have other, more favorable options such as appearing before a judge who is likely to be sympathetic to their plight?  The fewer options the opposing side has, the more likely they are to want a settlement.
• The opposing side’s time-constraints.  Is there a clock ticking on the case? Will the opposing side be in a weaker position the longer it takes to reach a settlement? For example, nearing the end of a statute of limitations may make the opposing side more likely to settle.

Knowing what your opponent wants and whether or not they are in a weakened position will give you the data you need to craft a settlement offer most advantageous to your client.

Crafting Realistic Win-Win Offers

No matter how much of a negotiator you are, you never really win a settlement negotiation unless all sides walk away feeling like they got a good deal. Here are a few tips on how you can craft realistic win-win offers.

• Use a fair standard. Despite what many people believe, good negotiation stands on a foundation of fairness. The aim is not to exploit the other side but to come up with a fair and equitable agreement. But to do this, you must use a fair standard that all sides can agree on. For example, you might agree that using the Kelly Blue Book value for a vehicle is a fair standard. Coming to a fair standard agreement is easy when dealing with tangible goods but it may be more difficult when dealing with intangibles such as pain and suffering.
• Understand the opposing side’s desires. If you’ve done your homework, you will understand what the opposing side really wants out of the negotiations. In order to craft a win-win settlement offer, you will need to give them some of their most important objectives.
• Be willing to concede something. In most negotiations you will need to concede some of your objectives. Before you begin your negotiations, determine what it is that you’re willing to give up in exchange for a settlement.

Negotiating a legal settlement requires a deep understanding of your opponent and a willingness to give them some of what they want while still achieving advantageous outcomes for your client.

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Jane Oxley is President of Smokeball, a productivity and case management software provider that increases efficiency and profitability for solo attorneys and small law firms. Jane’s worked in the legal field for her entire career, spending over 20 years engaged with small law firms. She has a strong affinity with small law firms and the crucial role they play in the communities they serve and is passionate about helping them work towards more productive and less stressful practices.