selected mediation issues. u each mediation is different n evaluation of case l counsel n...
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SELECTED MEDIATION ISSUES
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Each Mediation is Different
Evaluation of Case
Counsel
Personalities
Experience
Knowledge of controlling facts/law
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Each Mediation is Different (cont.)
Clients
Plaintiff’s reason for litigation
Lottery
Principle
Other needs
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Each Mediation is Different (cont.)
Defendant’s approach
Economic
Personnel issues
Principle
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Each Mediation is Different (cont.)
Insurance
Which carrier
Inside or outside representation of carrier
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Merits of Case Merits of Case
Substance Type and Merits of Claim
Documents
Experts
Damages
Types of Damages
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Merits of Case (cont.)Merits of Case (cont.)
Court
State
Federal
Jury
Witnesses
Credibility
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Two Recurring Mediations HurdlesTwo Recurring Mediations Hurdles
Initial Demands/Offers
Irrational Plaintiff Demands
Irrational Defendant Responses
Breaking Impasse
Various Approaches
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Irrational Plaintiff Initial DemandsIrrational Plaintiff Initial Demands
$1.0 Billion vs. ($-3.0) Case
Effect on Process
Cannot do “American Style Negotiation”
Plaintiffs argue “I have been more reasonable.”
Defendant never gets to “best number”
Creates atmosphere of “no settlement”
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Plaintiff Needs to Start with “High Number” But One With a Rational Basis
Plaintiff should explain how and why opening number selected
For Example:
Back Pay – ID Comparables
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Plaintiff Needs to Start (cont.)
Compensatories – ID Effects of Treatment
• Medical Issues
Punitives – Listing of Awards in Jurisdiction
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Possible Mediator Approaches to Irrational DemandsPossible Mediator Approaches to Irrational Demands
Stop Plaintiff Before Irrational Demand Made
Virtual Negotiation
Use Conditional Demand/offer
Mid Point Issue
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Possible Mediator Approaches (cont.)Possible Mediator Approaches (cont.)
Make Interim Mediator Proposal
Base Number
Base Range
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Breaking ImpasseBreaking Impasse
Possible Approaches
Single Party Cases
BATNA (“Getting to Yes”)
Right Hand vs. Left Hand Analysis
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Hypothetical- for AnalysisHypothetical- for Analysis
Plaintiff is Terminated Employee Who Claims Retaliation Under Section 1981
Demands $1.0 Million
Damages claim weak – has fully mitigated with new job
Defendant has fairly high risk of liability
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Right Hand – The Defendant AnalysisRight Hand – The Defendant Analysis
Defendant’s Attorneys Fees - $200,000
Plaintiff’s Attorneys Fees - $250,000
Realistic Damages Award - $50,000
Possible But Unlikely Award - $1,000,000
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Economic OutcomeEconomic Outcome
Cost to Defendant - Best Case - $200,000
Defense fees
Cost to Defendant - Likely Case - $500,000
Defense fees; Plaintiff fees; damages
Cost to Defendant Unlikely but Possible - $1,500,000
“What is correct Settlement Amount?”
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Left Hand – The Plaintiff AnalysisLeft Hand – The Plaintiff Analysis
“Likely Range” of Jury Verdict - $50,000 to $1.0 Million
Plaintiff Risk Rate – 75% chance of winning for $50,000
Result of $50,000 Verdict
- ($ 10,000) – Costs
- ($ 15,000) – Taxes
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The Plaintiff Analysis (cont.)The Plaintiff Analysis (cont.)
Net: $15,000 to Plaintiff – Plus 3-Year Delay
Risk of Loss 25% plus Pay Defendant Costs - $10,000
Risk of AMT Treatment
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Result of $1,000,000 - Verdict
250,000 - Fees Award
$1,250,000
(500,000) - Fees and Costs Payment
(375,000) - Taxes
$375,000 - Net to Plaintiff
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- 3-Year Delay
- Risk of Loss
- Very Low Probability of Success
- 25% Probability of 0
- Punitives Treatment
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Other Single Plaintiff Settlement Approaches Other Single Plaintiff Settlement Approaches
Long Sessions vs. Deadlines
Caucus Merit Assessments
Baseball Arbitration
Allocations to Compensatory Damages
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Other Single Plaintiff Settlement Approaches (cont.)Other Single Plaintiff Settlement Approaches (cont.)
Treatment of Some Types of Compensatory Damages as Non-Taxable
Assumption of Risk
Each Side Selects Number in blind and agree to split the difference if within “X” of each other
Mediator’s Final Proposal
Draft of Controlling Terms
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PRAYERPRAYER
Wants vs. Needs
Rapport
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Class/Multi-Party ArbitrationsClass/Multi-Party Arbitrations
Mock Trial
Single Issue Trial
Mediator Draft of Provisions
High-Low With Arbitration
Detroit Edison, Coke
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Class/Multi-Party Arbitrations (cont.)Class/Multi-Party Arbitrations (cont.)
Coupons
Winn Dixie, Ingles
Reverter Pools
PPG
Size of Pools Based on Number of Claims
Sears
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Class/Multi-Party Arbitrations (cont.)Class/Multi-Party Arbitrations (cont.)
Dixiland Approach
Claims made before relief established
Use of Mediator’s Proposal
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Don’t Quit