I recently had a mediation with a lawyer that I have had files with in the past. During our negotiations she began to “huff and puff” about the quantum of my offer. She provided me with ZERO legal or substantive arguments for her position. When I simply asked her for a breakdown of her last settlement offer she was confused and frazzled. I quickly knew she was ill equipped or simply unprepared for this discussion.
Here is the thing- and this is applicable in MANY aspects of life – there is a true value in showing your work. It is so important especially when you are working for institutional clients (as I do). It provides value and shows your client that you have taken time and care in preparing your offer to settle. Without showing your work, you become a merchant haggling over the best price.
Additionally, there is a level of transparency and fairness that comes with showing your work that is often appreciated by the other side. It means you have taken you time to review the file materials, assess risk and whatever else in order to contemplate the value of the file.
You need to be able to carefully justify each offer you make when in settlement discussions. If you are representing an individual client the concept is the same. Your client pays you GOOD money and deserves the time and care that they are entitled to by virtue of this agreement. I cannot count the amount of times I have seen counsel malfunction when asked for a figure breakdown. If you cannot substantiate and breakdown your offer then you are not doing enough for your client. Your owe your client AT THE VERY LEAST the courtesy of properly assessing their file and assigning a monetary value to it. If this is not done then your client is better off advocating for themselves.
It is also helpful for your opposition to understand the reason why you made a certain offer. A breakdown can give your offer an air of credibility. Reputation is everything in this field. To be viewed as an unfair negotiator has never been acceptable to me and it shouldn’t be acceptable to you either. Don’t ever underestimate someone’s memory. If you get into the habit of unfair negotiations practice there will certainly be another file with the the same lawyer. Don’t be that person, be fair and be firm in your offer. Don’t say its your final offer if it’s not and never give someone a reason to have a “not negotiating in good faith” tantrum.
Just remember when you were in school solving a math problem. If you showed your work but the end result is not quite right your teacher will usually allocate marks for that effort and can always assess how you came to your answer (correct or not). This is the same in negotiations. Allow the other side the opportunity to assess the way you value the file, if there is a discrepancy between the way you view a file and the way the other side views it then that is something that should be explored through this negotiation and mediation process.
This method can be used in other negotiations (i.e. negotiating your salary for example) and is applicable to all other aspects in life that involve negotiations.
I can go on and on about negotiations having done several. Feel free to email (simpysandra.ca@gmail.com) with any suggestions you may have on helpful litigation lawyer posts. The important thing I want to touch on here is that showing your work is ALWAYS of value.
