mediation advocacy - callahan dispute resolutionmediation advocacy techniques that work as relates...

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MEDIATION ADVOCACYMEDIATIONADVOCACYHowtogetthemostoutofyournextmediation

October18,2016RebeccaCallahan,Presenter

Speaker– RebeccaCallahanRebecca is a full-time mediator / arbitrator with offices in Newport Beach, California. She also does work as a mediation / arbitration

l Sh i b f h A i consultant. She is a member of the American Arbitration Association’s commercial mediation and arbitration panels. Her area of expertise is business disputes.

Rebecca earned a master’s degree in dispute resolution from the Straus Institute where she is an adjunct professor. She earned her law j pdegree from UC Berkeley (Boalt Hall) and her undergraduate degree from USC.

For more information, please visit Rebecca’s website at www.callahanADR.com.

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Program Topics:

1. Mediatorselection

2. Advocacyinthecontextofmediatingthelitigateddispute

3. Preparationtechniquesthatworktoadvancethemediationprocessorpromotesettlement

4. Advocacytechniquesthatdon’tworktoadvancethemediationprocessorpromotesettlement

5. Whydoesanyofthismatter?

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6. Finalthoughtsreaxiomsthatexplainwhymediationasanalternativetolitigation/arbitrationworks

7. Q&A

Program Goals:Ihopeyouwillleavetoday’sprogramswithsomenewideasabouthowto:

(1) use mediation(1) usemediation,

(2) selectthemediator

(3) “read”themediatorandenlisthis/herhelp

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Program Handouts:

CallahanArticleonMediationAdvocacy

CallahanArticleonReservationPoints

Callahan“PlanforSuccess”– PreparationChecklist

CallahanArticleonSpecialRulesforMediatedSettlementAgreements

KiserStudyArticlehttp://www.adrmediate.com/docs/Susan_Hammer_OSB%20Bulletin_Feb‐Mar09.pdf

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p

Playboyv.SheppardMullinArticlehttps://www.cacd.uscourts.gov/sites/default/files/documents/Leave%20the%20Odds%20for%20Vegas%20July%2010%202015.pdf

Dispute Resolution Continuum

Do nothing / stick head in the 

Take matters into own handsPrivate hearing w/ 

neutral selected by parties / Judge

Private / Party‐controlled process & 

outcome

Facilitated / Private / Party‐

controlled process & outcome / Parties select 

neutral

Private trial / Party‐controlled 

process / Arbitrator decides outcome / Parties select Arbitrator

Public trial / No party control of process / Judge 

decides outcome / Parties have no say in who judge is

sand parties / Judge decides outcomeCCP §§ 638 & 639

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“Iftheonlytoolyouhaveisahammer,youtendtoseeeveryproblemasanail.”

‐ AbrahamMaslow

Weoftenhammerawayatthesameoldproblems in the same old way because weproblemsinthesameoldwaybecauseweknowofnootherway.

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Selecting the MediatorThisisanimportantdecision.Whilemediatorshavenopowertodecidethedispute,theyhavetremendousinfluenceovertheprocessandtheoutcomebecausethey:y

Provideanalyticalinput

Directandredirectthe“conversation”

Makeproposalsandsuggestionsaboutsettlementoptions

Carrymessagesbetween/amongthepartiesthatarefrequentlyreframed,colored,filtered,edited,etc.

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Receivesecretinformationincaucuswhich,whilenotsharedwiththeotherside,mightinfluencetheirreframinganddirectionefforts

Offeropinions,recommendations,suggestions,viewsinanefforttomoveoneorbothorallpartiesoffoftheirpositions

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Problem Definition

SelectingtheMediator

Narrow Broad

Legal Issuesbargaining in the shadow

of the law

Interests & Needsbargaining based on what the parties want or needof the law

backwards lookingthe parties want or need

to have addressed or accommodated today in

order to say “yes”forward looking

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Problem Definition

SelectingtheMediator

Narrow BroadLegal Issues

EconomicIssues

PersonalInterests

EconomicInterests

SocietalInterests

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Mediator Role

Evaluative- order

SelectingtheMediator

- order

- recommend

- educate about what others have done

- ask permission

- offer a suggestion

Facilitative- never provide substantive input

- wait to be asked

ask permission

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Evaluative- order

- recommend

SelectingtheMediator

recommend

- educate about what others have done

- ask permission

BroadNarrowLegal Issues -

bargaining in the shadowof the law

Interests & Needs -what the parties want or

need to have addressed or accommodated today in

- offer a suggestion

Facilitative- never provide substantive input

- wait to be asked accommodated today in order to say “yes”

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Th d fi iti f “ d ”

AdvocacyintheContextofMediatingtheLitigatedDispute

Thedefinitionof“advocacy”ispleading,advancing,

championingorsupportingacauseorproposal.

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Formediationtosucceedinachievinganegotiatedresolutionofthedispute,thereneedstobeaconstructive dialogueabouttheproblemandpersuasiveconversation aboutpossible

AdvocacyintheContextofMediatingtheLitigatedDispute

1. thelitigationalternative&howitcomparestothepossiblesolutions

2. theuncertaintiesofthelitigationoutcome3. theuncontrollables associatedwiththelitigationprocess,the

marketplaceorlifeingeneral4 h i k h d h l i l i

p p psettlementoptionsorterms – includingsuchthingsas

4. otherrisksthatareattendanttotheno‐resolutionalternative5. lostopportunitycosts6. what’sinitfortheotherside7. whythenegotiatedoutcomepossibilitymakessenseunder

thecircumstancesathand

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Mediatorsdon’tsettlecases….

Partiesdo.

AdvocacyintheContextofMediatingtheLitigatedDispute

Nomediatorhaseverpaidtheconsiderationorsignedthereleaseorotherwiselivedwiththeconsequencesofasettlement.

Whatmediatorsdoiscreateani t i hi h th tienvironmentinwhichtheparties

andtheirattorneyscandotheirbestjobofnegotiating,andthentheyhelpfacilitatethosediscussions.

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1. Planforwhoneedstobeatthemediation totellthestory

MediationAdvocacyTechniquesthatWork

toexplainthetheoryofthecase totalknumbers tomakein‐gameadjustmentstothepre‐mediationcase

evaluation tomakein‐gameadjustmentstothesettlementgoals

definedinadvanceofthemediation tomaketheultimatedecisionre“deal”or“nodeal”to a e t e u t ate dec s o e dea o o dea tobearresponsibilityforthe“deal”or“nodeal”decision

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2. Givesomethoughttowhenistherighttimetositdownandtrytotalkaboutsettlement?

MediationAdvocacyTechniquesthatWork

beforeorafterthefilingofthelawsuit beforethecaseis“atissue” beforediscoveryistaken/completed beforeorafterthehearingonadispositivemotion beforeorafterreachingimpasseinyourprivate

negotiationefforts

Q:Istheresomethinggoingonintheclient’sortheotherside’slifeorbusinessthatwouldpromoteordisincentivizesettlementdiscussionsatthismomentintime?Atsomefuturemomentintime?

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3. Setarealisticsettlementnumberthatisbaseduponsomethingmorethanthepredictedtrialoutcome.*

MediationAdvocacyTechniquesthatWork

Identifyrisksthatareavoidedbysettlingandassignavaluethatisthensubtractedfrom(Plaintiff)oraddedto(Defendant)thepredictedjudgmentvalue.

Dothisanalysisbothways sothatyoucanhaveapersuasivediscussionaboutwhytheothersideshouldchangeitspositioninyourfavor.

*ThereisempiricalevidencethroughtheKiserStudythatattorneysarenot verygoodatpredictingoutcomesattrial.Handout.

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Ifthesubjectmatterofthedisputeconcernspropertythathasafluctuatingmarketvalue,whatisthevalueofcappingthat loss / capturing that value today? By what degree

Somepossibleconsiderations…

thatloss/capturingthatvaluetoday?Bywhatdegreemightthemarketchangetoyourdisadvantagependingtheoutcomeattrial?

Ifthecaseturnsontheavailabilityandtestimonyofathirdpartywitness,whatisthevalueofavoidingtheriskthatthewitnesswillorwon’tshowup?willorwon’ttestifyinyourclient’sfavor?

Ifthecaseturnsuponwhothejudgeorjurybelieve,whatisthevalueofavoidingtheriskthatthejudgeorjuryrejectsyourclient’s/yourexpert’stestimony?

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Ifthecaseinvolvescomplicatedfactsand/orlegalissues,whatisthevalueofavoidingtheriskthatthejudgeorjurymakesamistakeorgetsconfusedonakeyissue?What’sthevalueofavoidingthetimeandexpenseofanappeal?

Ifthecaseisripeforsummaryadjudication,whatisthevalueofavoidingtheexpenseandpotentialadverserulingsassociatedwithsuchproceedings?

Whatisthevalueofrecoveringmoneytodayversus3or5or10yearsinthefuture?

Whatisthevalueofopportunitieslostornotbeingpursuedbecauseofthetime,moneyandotherresourcesbeingallocatedtothelitigation?

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4. Bepreparedtotalkturkey!(A) Ifyou’retheplaintiff,prepareanitemizationofdamagesandexplain/substantiatethefactualbasisforthosedamages,especially

MediationAdvocacyTechniquesthatWork

asrelatestopunitive,exemplary,emotionaldistressandconsequentialdamages.Considermakingademandinadvanceofthemediation,especiallywheninsuranceisgoingtobeatthetable–anddothiswellinadvanceofthemediationsoastogivethedefendant’sinsurerorexecutivedecisionmakersanopportunitytoevaluateyourclient’sclaimandreassesswhathasbeenreserved/authorizedforsettlement.

(B) Ifyou’rethedefendantandplaintiffprovidesyouwiththeabove,bepreparedtorespondandtoexplain/substantiatethefactualandbasisforyourresponseonanitem‐by‐itembasis.Cometothemediationpreparedtorespondtoanypre‐mediationdemand.

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5. Inprivatewithyourclient,takeabroaderview:

(A) Howdoestheclientdefineorunderstandalitigationvictory?

MediationAdvocacyTechniquesthatWork

y

(B) Isthatreliefavailablerealistically?atall?

(C) Hastheclientanchoredonthetopnumberoftherangeyougavehim/her/it?

(D) Howdoestheclientdefineorunderstandalitigationloss?

(E) Whatisthepotentialfinancialimpactofalitigationloss?Cantheclientaffordit?

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(F) Eventhoughyouthinktheclienthasa“goodcase,”doestheclientunderstandtheriskanduncertaintyassociatedwithhavingajudgeorjurydecidethematter?Thatirrespectiveofyourestimate(e.g.,80/20),ifthematterisdecidedagainstclient,thatconsequenceisborneby100%., q y

(G) Wheredoesthedisputepresently fitintotheclient’slife?Hasanythingchangedthatmightaffect/alterhowtheclientviewsorvaluesasettlement?

(H)Win,loseordraw,cantheclientaffordtotakethematterthroughtrial?throughanappeal?

(I) Whatisthefirm’slevelofcommitmentwithregardtoclient’srepresentation?Onlysolongasfeesarepaidcurrent?Onlythroughtrial?Forhoweverlongittakes?

(J)Whereisthecaseintermsoftheoriginalbudgetestimates?Whatisthecurrentestimaterehowmuchitwillcosttotakethematterthroughtrial?

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6. Lookforopportunitiestoexpandthepie: Aretheretaxconsequencesofajudgmentthatcanbe

avoided,minimized,structured,delayedbyasettlement?Ifh t t ti l l d th t l i h t b th

MediationAdvocacyTechniquesthatWork

so,whatpotentialvaluedoesthatplanninghavetobothsides?

Istheresomethingthatoneorbothsidesreallywantsorneedsorvaluesthatisnotavailablethroughthelitigation,butcouldbeputonthetabletodiscussion?E.g.,anexistingrelationship?afuturerelationship?anapology?anexplanation?p

Arethereothercircumstancesthatmightmotivateoneorbothpartiestobemoreamenabletosettlement?E.g.,age?health?changeinfamilycircumstance(adeath,abirth,amarriage)?changeinbusinesscircumstance(M&Aopportunity,founderleaving,restructuring)?

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7. Haveabargainingplan: Isthereanythinginwhatyouwantthatyouthinktheother

sidemaybewillingtogiveorconcedetoyou?Ifnot,what’sl h h ?

MediationAdvocacyTechniquesthatWork

yourplanonhowtomovethem?

Isthereanythingthatyoumaybewillingtogiveorconcedetotheotherside?Ifso,whatareyougoingtoproposethattheytradetogetit?

Prioritizewhatyouwanttoachieve

Prioritizewhatyoumightbewillingtogiveup

Haveanopeningmoveandatentativesetofmovestoachieveyoursettlementgoal(sharedwiththemediator)

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Haveasettlementgoal(nottobesharedwiththemediator)thatyouhaveworkedoutwiththeclientwouldbeagoodsettlementintermsofrisks,costsanduncontrollables

id d d h i d d iavoidedandotherinterests,needsandcircumstancesaccommodated

Whensettingreservationpointswiththeclient,leaveyourselfroomandspecifyclearqualifierssothatitispossibletomake“in‐game”adjustmentsatthemediationifwarranted.Handoutre“reservationpoints”

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8. Planforsuccess– takeadraftsettlementagreementtothemediation.

9. Miscellaneous d l l

MediationAdvocacyTechniquesthatWork

Discussandagreeuponclientrole Willvisualaidshelpwithstorytelling?negotiation? Readtheotherside’sbrief&prepareareasonedresponse

aimedatgettingdiscussionsgoing‐ not“winning”theargument. Rethinknotsharingyourbrief!

Prepareyourselfandclienttobepatient– withtheprocessandwiththeotherside seismicshiftstaketime peopleprocessinformationanddecisionmakeat

differentratesofspeed– Youcanonlyworkasfastastheslowestpersonatthetable

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Becausethereisadisturbingtrendofclientssuingtheirattorneysfor“settlementmalpractice”inbothcontexts– whentheydoandwhentheydonotsettle.It’sagoodideatohaveaseriousdiscussionwiththeclientabouttherisksoflitigationandgivingvaluetothoserisks.

Whydoesanyofthismatter?

CasesWhereClientsSettledwithTheirAdversaryandThenSuedTheirLawyerCasselv.SuperiorCourt,51Cal.4th113,124(2011)Filbinv.Fitzgerald,211Cal.App.4th154(2012)Roldanv.Callahan&Blaine,219Cal.App.4th87(2013)SyersPropertiesIII,Inc.v.Rankin,2014WL1761923(1st Dist.,May5,2014)Amisv.GreenbergTaurigLLP,235Cal.App.4th331(2015)

CasesWhereClientsDidNotSettle/DidNotLiketheResultatTrialandThenSuedTheirLawyerMouav.PittulloHowingtonBarkerAbernathyLLP,228Cal.App.4th107(2014)Playboy,Inc.v.SheppardMullin,LosAngelesSuperiorCourt,CaseNo.BC579105(filedApr.17,2015)

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Whataredeficientorineffectiveadvocacyytechniquesinthecontextofmediatingthelitigateddispute?

Notsurprisingly,these“techniques” are frequently whattechniques arefrequentlywhatcauseorcontributetoimpasseatmediation.

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1. Vilifyingand/orinsultingtheotherpartyorcounsel notamessagethatwillbecarried notamessagethatinvitesnegotiation “fightin’words”…notwhatmediationisabout

2. Settinganartificialtimelimitonhowmuchtimewillbecommittedtothemediation(e.g.,3hourmediationsessiontosettleadisputethathasbeeninthecourtsfor2years)

3. Sending“appearancecounsel”oranattorneywhoisnotresponsibleforadvice‐givingtotheclientorfortakingthemattertotrial

4. Plannedorscripted“venting”

5. Comingprepared/willingtodiscussonlythevirtuesoftheclient’scaseandnoneofthenegatives,risks,realityfactors,etc.

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6. Holdingcardstooclosetothevest– notsharinginformationnecessaryormaterialtopersuadingtheothersidetomoveoffofitsposition

7. Playing games aimed at fooling the mediator and using him or7. Playinggamesaimedatfoolingthemediatorandusinghimorherasaninstrumentofdeceptionormisinformation

8. Notgivingthoughtorconsiderationtothethingsthatdoworktoadvancethemediationprocessandpromotesettlementdialogue

9. Nottakingtimetoprepare/wingingit

10. Limiting/peggingtheclient’ssettlementnumbertothepredicted“judgmentvalue” ofthecase.

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CLOSINGREMARKS

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DisputeResolutionAxiom#1:

Adisputebelongsto……thepartieswhocreatedit.

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Thepartiesmostdirectly

DisputeResolutionAxiom#2:

affectedbyadispute‐ giventherightcircumstances– aretheoneswhoarebestabletoresolveit.

Therefore,thebestresolutionislikelytoflowdirectlyfrom…

…thepartiesthemselves.

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DisputeResolutionAxiom#3:

Alldisputesend……sometime.

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DisputeResolutionAxiom#4:

Mediationisnota“onesizefitsall”process!

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DisputeResolutionAxiom#5:

Thetwomostpowerfulwarriorsarepatience

andtime.

‐ LeoTolstoy

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