Tuesday, March 28, 2017

$1,000,000.00 Mediation Settlement

Mediation can be a cost effective means of dispute resolution even though the mediator, unlike an arbitrator in a binding arbitration, typically does not have the authority to make a final determination concerning the issues presented. Nonetheless, if the parties are sufficiently motivated towards resolution, the mediator can help close the deal.

The primary purpose of mediation is to obtain a resolution of the dispute. But even if unsuccessful, the mediation can serve to further crystallize the respective positions of the parties, provide the perspective of an independent opinion from someone who has no skin in the game and even be a basis for a creative approach towards resolution.

In a recent matter handled by my office, I was able to successfully mediate a One Million Dollar ($1,000,000.00) settlement in a breach of contract action. The most significant factor in its resolution was clearly that the parties were motivated. Despite the motivation, however, there existed significant obstacles to a settlement because of the defendant's tenuous financial position.

The mediation, however, was helpful in overcoming these obstacles as the mediator, in a tempered even handed way, provided a dose of reality for both sides.

In addition, by comprising a settlement that consisted of cash, stock options and additional contractual work, the parties through discussion creatively addressed the defendant's concerns over its ability to pay.

And in the final analysis, I am sure it did not hurt that our adversary was well aware that in the event mediation was not successful, our office was fully competent and capable of addressing these issues at trial, if necessary.

Please feel free to reach out for all your legal needs.

Sincerely,


Mario Biaggi Jr.