How to Resolve Disputes Without Litigation

Step-by-Step Guide

1. 1

   Step 1: Propose negotiation.

   Instead of going through a lengthy trial, you can try to resolve the dispute yourself by negotiating with the other party.
   
   Negotiation frequently occurs when an insurance company is involved in a lawsuit, but you can use negotiation to settle almost any dispute.
   
   By negotiating a settlement, you and the other party can also avoid the unpredictability of trial.
   
   You can propose negotiation by calling up the other party and asking if they would be willing to try and negotiate a resolution to the dispute.
   
   Negotiation can be formal or informal.
   
   For example, you can use attorneys and meet in a lawyer’s office around a conference table to negotiate.
   
   Alternately, you can negotiate informally over a cup of coffee at a coffee shop.
   
   Negotiation is also voluntary.
   
   You can walk away at any time.
   
   For this reason, you should negotiate only if you have a real interest in reaching a settlement.
   
   Negotiation usually involves “give and take”—you give up something in order to get something in return.
   
   If you feel that you absolutely cannot give up anything, then you should either arbitrate the dispute or go to court.
2. 2

   Step 2: Hire a lawyer.

   If the dispute is worth a lot of money, then you should have a lawyer represent you.
   
   Negotiations are complicated, and you would benefit from an experienced advocate on your side of the negotiation table.
   
   You can find a lawyer by visiting your state’s bar association, which should run a referral program.
   
   Find a lawyer who specializes in your area of dispute.
   
   Then call up the lawyer and ask if he or she has experience negotiating settlements. , Depending on the lawsuit, you might be able to get a lawyer to represent you on “contingency.” Under this arrangement, the lawyer will not charge a fee.
   
   Instead, he or she will get a percentage of any settlement amount they manage to negotiate.
   
   Contingency fee arrangements are available only if you are the one who has been harmed.
   
   If you are the defendant, then there wouldn’t be any settlement for the lawyer to take a fee from.
   
   Alternately, you could choose to pay your lawyer by the hour or by using a flat fee agreement., If the other side agrees to negotiate, then you will need to strategize with your lawyer.
   
   For example, you will need to discuss the strengths and weaknesses of your case.
   
   The stronger your case, then the more aggressive you can be in negotiations.
   
   Also try to analyze what the other side wants from negotiation.
   
   Why did they agree to come to the bargaining table? Try to identify what interests are motivating them.For example, they may be interested in avoiding an emotional trial.
   
   By identifying interests, you can find common ground with the other party.
   
   You should also think about your alternatives.If negotiation fails, what is your next best option? For example, your next best option might be a trial.
   
   If you are comfortable with your next best option, then you can feel comfortable standing your ground in negotiation. , This is your “walkaway point” or “walkaway number.”By having this number firmly in mind, you can negotiate effectively—and get up from the negotiation table if the other side can’t meet your minimum.
   
   The minimum you are willing to settle for is based on a variety of factors.
   
   For example, you should consider how relatively strong your case is.
   
   Also consider how strong the other side’s evidence is.
   
   For example, if you are suing for $100,000 but think you only have a 50% chance of winning, then you might want to settle for $50,000.
   
   That could be your “walkaway number.” Talk this over with your lawyer.
   
   He or she has more experience and can explain the strength of your evidence.
   
   Your evidence might be stronger than you think.
   
   If so, your walkaway number could be higher than you would guess. , Negotiations can take place anywhere.
   
   If you have a lawyer, then you will probably meet at a lawyer’s office.
   
   If you do not have a lawyer, then you should find a quiet place where you can meet.
   
   For example, you could schedule a meeting room in your local library.
   
   You might need several sessions to negotiate.
   
   Unless your dispute is simple, you probably will not solve it in one negotiation session.
   
   You also might need to gather more information to make the negotiation worthwhile.
   
   For example, if your dog bit someone, then you might need more information on how much was spent on medical care. , Negotiation will not work if you harden into inflexible positions.
   
   Instead, you need to be open to what the other side is saying.
   
   Follow these tips:
   Listen actively.By showing that you are paying attention, you signal to the other side that you are taking their offers seriously.
   
   Active listening builds trust.
   
   You can show you are listening actively by making eye contact and taking notes.
   
   Show empathy.Many people become frustrated when they do not think they are being heard.
   
   You can show empathy by summarizing what the other person has just said.Remain calm.
   
   Negotiation can dredge up powerful emotions, especially if you think the other side is being unreasonable.
   
   To remain calm, try to sit with an “open” body style: uncrossed arms and legs, facing the other person.You can also take breaks if you need to. , Negotiations will not always be successful.
   
   You should negotiate so long as you are making forward progress.
   
   However, there are situations in which negotiation will break down.
   
   For example, you might think that the other party is not negotiating in good faith.
   
   If he or she is intimidating or sarcastic, then you can signal that you find the behavior unacceptable.Instead of getting up in a huff, say, “I don’t think I can figure out what you are arguing for in between all of your jokes.” Offer to take a break to cool off.
   
   If negotiations fail, then you will need to file a lawsuit (if you are suing the other person).
   
   If you were the defendant, then you will have to wait for the other party to sue you in court. , If negotiations are successful, then your lawyers can draft a settlement agreement.
   
   This agreement is a binding contract between all parties.
   
   If one party violates the contract, then the other can sue.
   
   You should sign the agreement and keep a copy for your records.
   
   If you negotiate without a lawyer, then you and the other person will have to draft a settlement agreement.
   
   There are sample settlement agreements on the Internet.You can find one and revise it to suit your situation.
   
   See Write a Settlement Agreement for more information.
3. 3

   Step 3: Ask about attorney’s fees.

4. 4

   Step 4: Strategize with your attorney.

5. 5

   Step 5: Come up with your “walkaway number.” You need to identify the absolute minimum that you are willing to settle for in negotiations.

6. 6

   Step 6: Meet to negotiate.

7. 7

   Step 7: Be open to compromise.

8. 8

   Step 8: Walk away

9. 9

   Step 9: if necessary.

10. 10

    Step 10: Draft a settlement agreement.

Detailed Guide

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