When you’re negotiating settlement of an employment action, you have much more to consider than just “how much money.” There are many nonmonetary remedies that can—either alone or combined with money—bring the parties to agreement. And how money is paid out can also be a good bargaining chip.
When arguing over money, negotiators often put pressure on the side that’s conceded less by claiming that it is only “fair” for both sides to concede in roughly equal amounts. “Look how much we came down,” they will say. A variant of this strategy is the proposal to “split the difference” after you’ve negotiated for some time and then reached an impasse. Both tactics are difficult to resist. Here are a couple of considerations that may help you stand your ground.
Skilled negotiators disagree on whether it’s better to make the first offer or demand, or to let the other side go first. Although the correct approach will likely vary from case to case, in the context of settling litigation, it’s often advisable to have the other side open. But there are times to take the first plunge.
You’re representing someone injured in a car accident and you’ve reached the point at which you’re ready to send a demand letter to communicate a settlement offer to the defendant’s insurance carrier. But what should that letter include? To get you started, here are some sample provisions to include in your letter as well as drafting suggestions.