At 9:00 a.m. the mediation began exactly on schedule.
The lawyers shook hands. The mediator delivered the
familiar opening remarks about good faith, open minds and the virtues of
voluntary resolution. Everyone nodded with the solemn politeness of people who
have heard this speech many times before.
At 9:30 the plaintiff demanded $5 million.
At 10:15 the defendant offered $25,000.
By 11:00 the lawyers had stopped making eye contact.
At 1:00 p.m. the mediator had walked approximately seven
miles between conference rooms.
At 4:30 someone observed, with weary authority, "We're
obviously too far apart."
At 5:00 everyone left convinced the mediation had been
pointless.
Three months later--after another $200,000 in discovery
skirmishes, expert invoices, and motions no judge was particularly excited to
read--the case settled for $875,000.
Anyone who has practiced litigation for more than a few
years has witnessed some version of this story.
The frustrating part is that mediations often fail not
because settlement is impossible, but because the participants--usually
intelligent, experienced professionals--approach the process in ways that make
settlement nearly impossible.
For lawyers determined to ensure their mediation goes
nowhere, the following strategies have proven remarkably reliable:
1. Arrive completely unprepared
Preparation is one of the great overrated virtues of
modern litigation.
If your goal is to avoid settlement, show up at mediation
having given the case only the amount of thought strictly required to appear
competent.
Do not analyze the weaknesses in your position. Do not
calculate a realistic damages range. And certainly do
not develop a negotiation strategy.
Nothing advances a mediation quite like hearing your
lawyer say:
"I'll have to think about that issue."
Especially when it is an issue that has been in the
pleadings or discovery for eighteen months.
Prepared lawyers treat mediation like an important
negotiation.
Unprepared lawyers treat it like a long meeting where they
will figure things out as they go.
The latter approach has the added benefit of ensuring that
no one feels confident enough to move.
2. Bring a client who thinks mediation means immediate vindication
Many clients arrive at mediation with an appealingly
simple theory of the process: the mediator will quickly recognize the obvious
righteousness of their case and persuade the other side to surrender.
If you want the mediation to collapse, do nothing to
disturb this belief beforehand.
Do not explain that:
• litigation involves risk
• juries are unpredictable
• settlement requires compromise
• or that the first numbers exchanged are rarely the last.
When the client hears the first discussion of possible
settlement and quietly asks:
"Wait... we'd actually accept that?"
You can often feel the room temperature change.
Successful mediation usually begins long before the
mediation itself--with lawyers explaining to their clients that resolution
rarely feels like victory.
3. Make an opening demand that signals you are not serious
Opening numbers matter--not because they determine the final result, but because they signal whether the
negotiation is real.
If you want to stall the process immediately, begin with a
number that bears only a distant relationship to the case.
An effective opening demand should prompt the opposing
party to say something along the lines of:
"Well, this is going to be a long day."
Or, in more candid moments:
"Why are we even here?"
Once credibility disappears, it is surprisingly difficult
to reintroduce it later in the afternoon.
Negotiation, like litigation, runs heavily on signals. And
nothing signals "this will be pointless" quite like an opening number designed
primarily for dramatic effect.
4. Explain that your case is a guaranteed winner
Nothing eliminates the possibility of settlement faster
than two lawyers confidently explaining that their respective cases cannot
possibly lose.
Common expressions include:
"We can't lose this case."
"Any jury will see right through their argument."
"The law is completely on our side."
And if you're really lucky you
hear the words "slam dunk."
These statements are emotionally gratifying and
occasionally even true.
But they have a predictable side effect: if both sides
believe victory is inevitable, neither has any reason to compromise.
The inconvenient reality of litigation is that every case
contains risk. Witnesses perform unpredictably. Judges issue rulings that
surprise everyone. Jurors occasionally reach conclusions that seem to have
emerged from an entirely different trial.
Acknowledging those risks does not weaken a case.
Pretending they do not exist simply makes settlement
harder.
5. Treat the mediator as a very polite courier
Some lawyers treat the mediator as a highly courteous
messenger whose primary responsibility is transporting numbers from one room to
another or from one Zoom breakout room to another these days.
If your goal is to prevent settlement, ignore everything
else the mediator says.
Experienced mediators have watched hundreds--or
thousands--of negotiations unfold. They develop a sense for what is blocking
progress, what arguments resonate and what numbers actually
close cases.
Which is precisely why disregarding their observations can
be such an effective strategy for keeping the dispute alive indefinitely.
A good mediator does not merely shuttle offers.
They manage expectations, emotions, timing and
momentum--the invisible mechanics of negotiation that rarely appear in law
school casebooks.
6. Move in increments so small they require a microscope
Few things drain life from a mediation faster than
microscopic negotiation.
For example:
Demand: $2,000,000
Offer: $50,000
Demand: $1,990,000
Offer: $52,000
At this pace, the parties are projected to reach the
midpoint sometime around the year 2037.
Assuming the mediator has not retired by then.
Movement in negotiation sends signals. Substantial
movement suggests engagement and not necessarily weakness.
Tiny movement suggests something else entirely: that
everyone intends to be here all day without actually getting
anywhere.
7. Take everything personally
Litigation has a curious ability to transform routine
professional disagreements into matters of personal honor.
Mediation works best when those emotions cool down.
If you would prefer the opposite outcome, make sure every
dispute feels like an attack on someone's integrity and/or a critique of their
competence.
Helpful techniques include:
• revisiting every perceived discovery abuse
• questioning opposing counsel's professionalism
• recounting depositions from two years ago in vivid
detail.
Nothing advances settlement discussions like a spirited
debate about who behaved worse during document production.
8. Focus entirely on being right
Lawyers are trained advocates. We build arguments, marshal
evidence and demonstrate that the other side is wrong.
These are excellent skills for trial.
Mediation, unfortunately, rewards a different talent:
solving problems.
If your goal is to prevent settlement, concentrate
exclusively on winning the argument rather than resolving the dispute.
Being right is deeply satisfying.
It is simply not always the same thing as getting the case
settled.
9. Ensure no one present has real authority
One of the most efficient ways to stall mediation is to
arrange things so that every meaningful decision must be approved by someone
who is not in the building or even on the Zoom.
Ideally that person should be:
• an executive several time zones away
• an insurance adjuster with a very full afternoon
• participants with inadequate or no internet connection
• or a committee that meets next Thursday.
Nothing builds momentum quite like hearing, repeatedly:
"I'll need to check with someone" or better yet
"my representative needs to speak to their boss but he's at his kid's
soccer game."
Particularly when that someone has never actually read the
file or even spoken to counsel.
10. Declare the mediation a failure at 3:00 p.m.
Many mediations look hopeless in the middle of the
afternoon.
Numbers are still far apart. People are tired. The
mediator has walked enough steps to qualify for a fitness award.
This is the ideal moment to conclude:
"We're obviously too far apart."
Experienced mediators know that some of the most
productive negotiations occur late in the day--or even later, after everyone has
had time to think about what they heard.
Declaring failure prematurely has one clear advantage: it
guarantees that none of that inconvenient progress will occur.
Conclusion
The encouraging news about all of
these mistakes is that they are easily avoided.
Most mediations fail not because settlement is impossible,
but because the participants approach mediation the same way they approach
trial--focused on persuasion rather than resolution.
Lawyers who prepare carefully, manage their clients'
expectations, negotiate credibly and make intelligent use of the mediator often
discover something surprising: Mediation works. Not always. But far more often
than the war stories would suggest. And occasionally it even saves everyone
from spending another year arguing about interrogatories--only to settle on the
courthouse steps the night before trial.
Submit your own column for publication to Diana Bosetti
For reprint rights or to order a copy of your photo:
Email
Jeremy_Ellis@dailyjournal.com
for prices.
Direct dial: 213-229-5424
Send a letter to the editor:
Email: letters@dailyjournal.com



