How to Get the Last Dollar out of Mediation
One negotiating tactic that I can share we used today to get some extra money at mediation. But it should be used sparingly and in the right situation.
We were in mediation today and the defense had topped out. After the first offer, it looked like they were going to top out in the $40,000 – $50,000 range. We would be okay with $50,000, but would not be okay with $40,000. As the offers and counters went back and forth, it looked very clear that they were going to top out at $40,000.
My client wasn’t happy about that, but was uncomfortable with going to court and wasn’t certain what to do. He said that if we could get more money than that, he would settle, but couldn’t see settling for $40,000.
But the defense pegged out at $40,000 and wasn’t going any higher.
I asked the mediator if he had a Consent Order of Dismissal in his computer. He said “Heck, Dave. I’ve got a blank one in my folder”. It was perfect. It had the caption and the signature lines of all involved and had a blank for the dollar amount.
I filled in $42,500 and signed it along with my client. Telling the mediator to tell them if they came up just a little, that it would resolve the entire case. And it worked.
I was involved in a mediation with Karl Folkens a few years ago when he did the same thing. I think that used sparingly and in the right situation, it’s a good way to squeeze a little extra out of the case. But I wouldn’t try that early in the mediation or on every mediation.
Maybe it doesn't work every time but when it works it works!
The key to any good mediation is that the mediator should provide a nice breakfast. A nice assortment of bagels and muffins is often the key to an expedited settlement!
