dougnoll’s posthaven

Segment 1: Friedman Mediation. Our guest on this edition of The Doug Noll Show is Bruce Friedman. Bruce is a former partner at Bingham McCutchen, LLP, has more than 37 years of complex litigation experience in the insurance, financial services and products, and class action areas. He is also the founder of Friedman Mediation (http://friedmanmediation.com/). Bruce has been a practicing trial lawyer for many years, but found that his greatest satisfaction was in evaluating cases and trying to resolve them as quickly as possible for his clients. Mediation allows him to exhibit his natural ability to analyze legal issues as well as resolve matters in a timely manner.

Segment 2: Legal Negotiation. Doug and Bruce are both amazed by how little trial lawyers – even sophisticated and very experienced lawyers – actually know about legal negotiation. Generally speaking, they usually don’t understand the process and do not come to the session with a written concession agreement. Bruce has found the initial offer is often a shock, and it takes a long time for the parties to “get real” about what needs to happen in a mediation session.

Segment 3: Constructive Conversation and Creative Thinking. If a young lawyer came to Bruce and said he or she wanted to learn about working with a mediator, Bruce would first tell them to take classes to learn about the process. He would also stress that they should know their case, be prepared to discuss the case in a reasonable manner with the mediator, and be creative to find solutions to the case.  

Bruce reminds us that clients can win in mediation. They can win in the sense that they can sometimes get a better settlement in mediation then they would in a trial. Additionally, it’s an opportunity for the lawyers to engage in a much more constructive conversation than they generally get to do in the context of litigation, and to offer some very creative and out-of-the box thinking that is not allowed in court.

Segment 4: Take Advantage of the Mediation. Bruce is seeing a trend these days to cut expenses by settling cases and not incurring additional expenses by furthering the case and taking it to trial. There is an effort to cut legal budgets within corporations as well. He is also finding people are willing to mediate earlier rather than later. He doesn’t think experienced lawyers appreciate how important it is to try to get closure at mediation. They need to really take advantage of the mediation process. Having all parties present and available to speak with each other is not likely to happen in court, or ever again.

To listen to the entire interview:

Segment 1

Segment 2

Segment 3

Segment 4

The job of the lawyer is to not only manage the negotiation so that the best possible outcome can be obtained, but also to help the client overcome the inherent distortions of the human brain so that decisional error is minimized. This is what I mean by cognitive counseling.
Some lawyers shy away from this idea saying that they are not therapists. I think it is important to understand that were not talking about therapy. Therapy involves diagnosis, prescription, and prognosis with the goal of healing injury. Cognitive counseling is more like coaching to help clients make good decisions.

The first step in cognitive counseling is to recognize decisional errors. This will take some practice, but armed with the information he received from you so far, you can see that any type of emotional reaction is potentially the cause of decisional error.

In addition to calling out decisional errors, you can slow the process down. Sometimes getting outside and walking around for a while is a useful way of getting some cognitive rest. Do not allow the process to accelerate so quickly that your client becomes overwhelmed emotionally or cognitively. Frequently, clients will leap ahead to find objections why a certain decision should not be made. As a cognitive counselor, try to maintain the decision-making one step at a time and bring your client back when he or she leaps forward.

In these situations, you will have to make an empathic connection with your client by listening, reading his or her emotional data field, summarizing the essence of what your client is saying, and labeling his or her emotional experience. When your client seems overwhelmed, have your client focus on what is really important. Most lawsuits are not life-changing. Therefore, you can ask questions about what life will look like five and 10 years ahead. Helping your client gain perspective on what is really important can be of crucial importance during the heat of a negotiation.

As I have repeatedly said, take good notes and be sure to memorialize your conversations with your client in a follow-up letter. The problem of the under settled case is growing as negotiation and mediation becomes more of a mainline practice. You will need to keep your client in line by making a written history of what happened.

Cognitive counseling is an iterative process, which means that you will repeat the same things over and over again. Sometimes it will seem like you are spinning your wheels. However, it is your repetition, patience, compassion, and understanding that will be the greatest service to your client. Your client will not remember your brilliant legal analysis. She will remember how you treated her and a very difficult and extreme moment of her life.

Remember, the best way to win the game is to call it yourself.

As a young lawyer, you may not be in charge of a negotiation but may be asked to be an assistant or second chair. There is quite a bit that you can do to help the principal lawyer prepare for and execute the negotiation. The fact that you lack experience will be made up by the thoroughness of your briefing book. Your primary function is information gathering and synthesis.
While the final negotiation strategy will be developed between the principal attorney and client, to the extent that they are well informed by you, they will be that much better prepared. So your job is to put together the information, distillate, synthesize it, and presented in a way that is immediately usable.

Your secondary function is to provide devil's advocacy. You will want to take the other side and develop its negotiation strategy based on the information you have developed to date. This will, of course, require some research on the other side. Fortunately, as you have probably learned, the explosion of social media sites provides a vast amount of information on people. Spending some time doing this research can give you tidbits of information and insight into who people are, their backgrounds, and their predispositions.

The usual function of young lawyers is to do legal research until you learn more about the other skills of lawyering. That role is no different in negotiation, where you are called upon to do a thorough case analysis. This will include a distillation of the salient facts and an analysis of the law applied to those facts. This is core lawyering with which you should be very familiar.
You will also want to do a comprehensive damage analysis. Again, you will have to start with the basic remedial concepts of damages, understand the claims, and work up various damage scenarios. You may be relying upon experts for some of this information and analysis. Do not be afraid to ask them hard questions and do not be afraid to professional ignorance if damage analysis and numbers are not your thing. It is their job to educate you, not impress you with how smart they are.

Very few lawyers are familiar with decision tree analysis so you can provide a useful addition to your briefing book with a decision tree. You may not be able to build a complex tree, but that is unnecessary. If you do nothing else than assess the probabilities of for trial outcomes, you will be adding value to the briefing book.

The briefing book can be something as short as a 2-3 page memo or a binder with detailed analysis and appendices. The amount of time and effort you put into a briefing book will depend upon the nature and size of the case, the litigation case budget, and your time constraints. You will probably never be asked to produce a negotiation briefing book. However, imagine the surprise of the principal lawyer when you present a detailed briefing book for review. I can pretty much guarantee you that you will create a positive buzz about your competency as young lawyer when you do this. The briefing book should contain all of the elements that we have discussed so far. In addition it should have a blank concession strategy plan that can be filled out by the principal lawyer and the client.

You may find yourself in the interesting position of having to explain a concession strategy to them as most lawyers have no clue what they are. We will be covering concession strategies later on.
In all of this work your primary job is to learn. You will take the information you’re learning in this course and apply it on the job. You will probably see behaviors and strategies that I recommend against. Be very careful not to criticize. Simply make note of what is observed and engage in the kind of reflective practice I discussed at the beginning of this course. What you want to do is learn from mistakes of others rather than adopt those behaviors and strategies as acceptable practice.
 In addition, you will see smart negotiators. Watch them very carefully and learn as much as you can about what makes them so good. Again, having taken this course will give you insight as to why they have become master negotiators.

I cannot emphasize enough how important reflective practice as an associate is. The first five years of law practice are an intense learning experience. You have to find time to step back and reflect upon what you are learning.

•    What works?
•    What does not work?
•    What did you do wrong?
•    What did you do right?
•    What could do better?

Remember, the best way to win the game is to call it yourself.

Spouses and business partners can easily be forgotten about. It is your job to make sure that they are fully informed, consistent with protecting attorney-client privilege. At the very least, you must inform your client to keep influencers up-to-date on case developments and the negotiation strategy. Again, a letter outlining all of this can be an important protection for you.

Who will be present during the negotiation? Generally speaking, you want all of the decision-makers at the negotiation if the negotiation is in the form of mediation or some other group conference. Sometimes, for strategic or tactical reasons, certain decision-makers might not be physically present. They should be available close by or available by telephone or Skype for consultation as a negotiation unfolds.

Who will have to be present to make a settlement agreement binding? Settlement agreements made during mediation are not binding unless all of the parties have signed the settlement agreement. Therefore, you must take great care to make sure that you know who will have to be present to bind everyone to a deal.

What will be the role of the client during the negotiation? This one is overlooked all the time. Most of the time, you want your client to be an active participant in the negotiation. Sometimes your client will take the lead; sometimes you will take the lead. This should be discussed ahead of time so that there is no confusion over roles during negotiations.

Another related problem has to do with personal accountability. Very few people have the courage to take personal responsibility for their actions. Many times, people will come to lawyers, hoping to shift responsibility for their actions away from themselves. In negotiation, clients are often confronted with the need to take personal responsibility for their actions for the first time. This can be a difficult pill to swallow. A conversation about personal accountability well before negotiation begins is therefore a good idea.

Some clients can become very emotional, often with ample justification. I will give you more information about emotions in the context of decision-making later on. However, recognize that all human beings are 98% emotional and 2% rational. Conflict and stress tend to shut down the prefrontal cortex and activate the emotional centers of the brain. Be prepared to deal with your client’s emotions.

Remember, the best way to win the game is to call it yourself.

Remember, the best way to win the game is to call it yourself.