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Victoria Pynchon

I mediate and arbitrate complex commercial disputes, the former with ADR Services, Inc. in Century City and the latter with...

She Mediates

ADR Services, Inc.

She Negotiates

She Negotiates

The 33 cent wage and income gap is unacceptable and unnecessary. So is the cliché glass ceiling. Bottom line, our...

Negotiating God: a Sunday Reflection

According to Robert Wright in The Evolution of God (reviewed in todays NYT Book Review by Paul Bloom) "God has mellowed" from a capricious tyrant into non-zero-sum playing diety.  This is  good news for mediators and anyone else in search of a better paradigm for conflict resolution than the 16th century adversarial system.  As Bloom explains Wright:

When people see themselves in zero-sum relationship with other people — see their fortunes as inversely correlated with the fortunes of other people, see the dynamic as win-lose — they tend to find a scriptural basis for intolerance or belligerence.” The recipe for salvation, then, is to arrange the world so that its people find themselves (and think of themselves as) interconnected: “When they see the relationship as non-zero-sum — see their fortunes as positively correlated, see the potential for a win-win outcome — they’re more likely to find the tolerant and understanding side of their scriptures.” Change the world, and you change the God. For Wright, the next evolutionary step is for practitioners of Abrahamic faiths to give up their claim to distinctiveness, and then renounce the specialness of monotheism altogether. In fact, when it comes to expanding the circle of moral consideration, he argues, religions like Buddhism have sometimes “outperformed the Abrahamics.

Having just finished reading Wright's The Moral Animal (an evolutionary exploration for our tendency to reciprocal altruism)  and taking the long view of Western Civilization, I'm pre-disposed to believe that we have not only evolved physically and intellectually, but "morally" as well.

I understand from Bloom's review that Wright -- either a firm agnostic or wavering atheist -- is moved to wonder whether a universe in which moral progress takes place might suggest the presence of a higher power.  Quoting Wright, Bloom observes:

[Wright] emphasizes that he is not arguing that you need divine intervention to account for moral improvement, which can be explained by a “mercilessly scientific account” involving the biological evolution of the human mind and the game-theoretic nature of social interaction. But he wonders why the universe is so constituted that moral progress takes place. “If history naturally pushes people toward moral improvement, toward moral truth, and their God, as they conceive their God, grows accordingly, becoming morally richer, then maybe this growth is evidence of some higher purpose, and maybe — conceivably — the source of that purpose is worthy of the name divinity.

Whatever the source of our moral development, divine or "mercilessly scientific," its encouraging on a bright summer Sunday to believe we can achieve, if not perfection, at least greater decency toward the divine in one another.

 

 

Negotiating from a Position of Weakness Hollywood Style

When last we left Ari and Terrence negotiating Ari's compensation Terrence had ceremoniously offered Ari "NOTHING!!!"

But we're not talking only money here.  We're talking power and agency in the psychological sense, i.e., agency as the capacity to control one's own future.  Before the "nothing!!!" offer, Ari had told his wife he was still "afraid" of Terrence even as she attempted to prop him up by reminding him that he was Terrence's partner now.  Although Ari wants control of the agency,  his strength falters when Terrence comes back from a seven-year sabbatical. 

Ari's discomfort in the scene below is palpable.  Terrence asserts his authority ("I hope you're not planning to expense the Bat Mitzvah to the agency"); implies that Terrence's daughter had better instincts for talent at eight years old than Ari has now; and, previews his plan to take over Ari's five-year relationship with the talent of the hour -- Vincent Chase. 

Ari is dealing from a position of psychological if not actual weakness.  Having Terrence back on the scene is a little like going back home for the holidays after a few years at college.  You feel independent but it takes only a few minutes with your parents to revert to your powerless teenage self.  The final blow to Ari's self-esteem below is delivered in the form of a "gift."  $50,000 for Ari's daughter's Bat Mitzvah.  Ari is fifteen years old again.

Sensing Ari's weakness, Terrence moves to consolidate his power by taking over a staff meeting from which he excludes Ari.  But Terrence has over-played his hand.  Using Terrence's violation of the agency's folkways ("you embarrassed me in front of my troops") Ari pries an apology out of him and wins his first battle over who can summon the other's attendence by fiat.   

When Ari returns to the negotiations, he has re-set the bargaining table in a way Lax and Sebenius in 3-D Negotiation would applaud.  The subject of the negotiation is no longer Ari's share of the profits, but the value of the company itself and Ari's share in it.  Note how Ari takes credit for the lion's share of the company's present value and emphasizes the company's vulnerability if Ari leaves.

The deal is sealed but the check unwritten and Terrence has no intention of fulfilling his promise when he learns that Ari intends to open his own agency, (tortiously) raiding Terrence's shop of its agents and clients. In a remarkable power play, Terrence brings together the "five families" Hollywood, to threaten Ari with ruin if he so much as offers CAA's mail room boy a paid position. Quick on his feet, Ari accuses Terrence of anti-Semitism (making Terrence the member of an "out group") and then promises not to touch any agency's clients other than Terrence's.

With no money to open his new agency, Terrence's agents are not inclined to follow Ari until an unlikely partner offers to fund his venture, below.

As Lax and Sebenius instruct:

3-D Negotiation involves not one, but three dimensions, all of which are in play more or less concurrently throughout an[y] effective negotiation[:]  1. Tactics  2. Deal design 3. Setup.

Deal designs, say the authors, create lasting value.

Smart people working at the drawing board can . . . discover hidden sources of economic and noneconomic value, then craft agreements -- design deals -- that unlock that value of the parties involved.

In the Entourage negotiation, Ari unlocks his own value when he finds the courage to leave the safety of Terrence's agency and open his own.  By episode's end, Ari has changed the players, the subject matter of the negotiation and the balance of power in town.  This is 3-D negotiation at its finest (even though it also rolls out at its most shameless).

All of that said, don't miss the opportunity to appreciate Ari's "at the table tactics" in negotiating the sale of his interest to Terrence.  He enters the room confidently, refuses to permit Terrence to use his old power plays ("save a tree; say it out loud"); re-anchors Terrence's $4 million open with "my counter is $#@$ you"; explains his own value; diminishes any claim Terrence might have to the present value of the agency; signals his firm willingness to walk away; and, demonstrates his commitment to stay away in the absence of a realistic offer ("I have a rich wife who loves to spoil me").  The power shifts and the deal is done in two minutes flat.

Yes, it's Hollywood.  But all good fiction, which Entourage certainly is, rests on hard facts, all of which are brought vividly to life here.

The Insulting Opening Offer

Does it ever serve a purpose?

One extremely good answer to the question whether an insulting first offer ever has a purpose can be found at Steve Mehta's Mediation Matters Blog Taking Escalates More than Giving.

In this example from Entourage, Terrence's insult is reciprocated by Ari in conflict escalation (as Steve predicts) and Ari's eventual victory as demonstrated by my longer post about this episode, Negotiation from a Position of Weakness, Hollywood-Style.

Put Conflict Resolution on the Climate Change Conference Agenda

Copenhagen DK, Corvallis and Santa Monica USA – 22 May 2009

by Gregg Walker, Tina Monberg, and Kenneth Cloke of Mediators Beyond Borders, 
Jens Emborg, Mie Marcussen, Lone Clausen, and Vibeke Vindeløv of Nordic Mediators

Place: Glyptoteket, Copenhagen

Date: The 10th and 11th December 2009

During eleven days in December 2009 delegates from throughout the world will meet in Copenhagen for the 15th Conference of the Parties – COP15 – to the United Nations Framework Convention on Climate Change, UNFCCC. The Denmark meeting is crucial for the international climate change negotiations. The climate change crisis challenges people throughout the world to invent and implement innovative ways to mitigate and thwart climate changing causes and effects. The crisis calls for new methods for nations and people to overcome differences and work together with the objective of preventing and resolving conflict arising because of limited resources and/or the effects of climate change.

In a Manifesto from 9th July 1955 issued in London, Albert Einstein and other leading scientists urged humanity to find peaceful means for the settlement of all matters based on new ways of thinking. An important new way of thinking features the use of the collaborative, participatory, and pluralistic conflict resolution processes like mediation and facilitation. Construction of a new global conflict prevention and resolution infrastructure is critical to a comprehensive international climate change policy. Such construction will be a major part of the Copenhagen Mediation Seminar, with discussions of conflict prevention and resolution. Our aim is to gather 100 mediators to create a new Manifesto showing the infrastructure to peaceful conflict resolution.

Please reserve this important seminar for 100 mediators attending from all parts of the world. More information will come shortly.

Gregg Walker, Tina Monberg, and Kenneth Cloke of Mediators Beyond Borders – Jens Emborg, Mie Marcussen, Lone Clausen, and Vibeke Vindelov of Nordic Mediators

During eleven days in December 2009 delegates from throughout the world will meet in Copenhagen for the 15th Conference of the Parties (COP 15) to the United Nations Framework Convention on Climate Change (UNFCCC). The Denmark meeting is crucial for the international climate change negotiations. In December 2007 the parties to the UNFCCC agreed at Bali, Indonesia that negotiations on a future agreement have to be concluded at COP 15. The decision reflected the increased emphasis on the need for swift action made in the latest report by the UN Intergovernmental Panel on Climate Change. The Bali delegates also recognized that 2009 would be a critical opportunity for an agreement before the commitments set in the Kyoto Protocol expire in 2012.

A Critical Issue

The International Crisis Group, one of the world’s leading independent, non-partisan conflict analysis advisory organizations, stresses that “a key challenge today is to better understand the relationship between climate change, environmental degradation and conflict and to effectively manage associated risks through appropriate conflict prevention and resolution mechanisms.” Conflict preventive measures and resolution mechanisms need to be part of the climate change negotiations, both in Copenhagen and beyond.

At the December 2007 United Nations Conference on Climate Change in Bali, Indonesia, the German Advisory Council on Climate Change presented a report, World in Transition – Climate Change as a Security Risk. Based on research into environmental conflicts, the causes of war, and climate impacts, the report states that climate changes could “overstretch many societies’ adaptive capacities within the coming decades. This could result in destabilization and violence, jeopardizing national and international security to a new degree.”

Drawing on the work of international experts and organizations including the United Nations Environmental Programme (UNEP), the report notes, though, that “climate change could also unite the international community, provided that it recognizes climate change as a threat to humankind” and adopts “a dynamic and globally coordinated climate policy.” If the international community “fails to do so,” the report emphasizes, “climate change will draw ever-deeper lines of division and conflict in international relations, triggering numerous conflicts between and within countries over the distribution of resources, especially water and land, over the management of migration, or over compensation payments between the countries mainly responsible for climate change and those countries most affected by its destructive effects.” In its introduction to the report, the UNEP website states that “combating climate change will be a central peace policy of the 21st century.” Conflict preventive measures and resolution mechanisms should be part of the climate change negotiations, both in Copenhagen and beyond.

Scientists See the Need


In addition, the scientific community recognizes that global climate change issues challenge our ability to deal with a changing environment containing huge potential for conflict. In March 2009 over 2500 delegates from nearly 80 countries participated in the International Scientific Congress on Climate Change: Global Risks, Challenges & Decisions in Copenhagen, Denmark. At the end of the conference the delegates presented a set of key messages that included cautions about conflict and climate change.

Key Message 2: Social Disruption stated that “recent observations show that societies are highly vulnerable to even modest levels of climate change, with poor nations and communities particularly at risk. Temperature rises above 2C will be very difficult for contemporary societies to cope with.”

Key Message 3: Long Term Strategy stressed that “rapid, sustained, and effective mitigation based on coordinated global and regional action is required to avoid ‘dangerous climate change’ regardless of how it is defined. Delay in initiating effective mitigation actions increases significantly the long-term social and economic costs of both adaptation and mitigation.”
Key Message 4: Equity Dimensions emphasized that “climate change is having, and will have, strongly differential effects on people within and between countries and regions, on this generation and future generations, and on human societies and the natural world.”

The delegates recommended the use of tools and governance practices to address these fundamental concerns. Conflict preventive measures, conflict transformation and resolution are essential to meet climate change challenges.

Rio and Kyoto Precedents


The COP 15 Provisional Agenda, reviewed in Bonn, Germany in early June, lists a range of essential issues, from emission reduction to technology transfer. Conflict prevention and resolution mechanisms are missing from the Agenda despite the fact that Article 14 of the 1992 UNFCCC (negotiated in New York and Rio de Janeiro and reaffirmed in Article 19 of the Kyoto Protocol) states that “in the event of a dispute between any two or more Parties concerning the interpretation or application of the Convention, the Parties concerned shall seek a settlement of the dispute through negotiation or any other peaceful means of their own choice.” This article, though, is not sufficient to address the complex conflicts between nations and peoples likely to emerge as climate change impacts accelerate. Conflict preventive measures and resolution mechanisms should be part of the talks in Bonn, Copenhagen, and beyond.

Beyond Rio and Kyoto, there is precedent for putting conflict resolution on the Climate Change Conference agenda. A number of UN treaties and conventions that deal with environmental issues include conflict or dispute resolution mechanisms. For example, the UN Convention on the Non-Navigational Uses of International Watercourses, adopted in 1997 by the UN General Assembly, specifies conflict resolution methods. Agenda 21, the Environment and Development Agenda administered by the United Nations Environmental Program (UNEP) emphasizes conflict resolution.

Article 39.3 specifies the need:

g) To identify and prevent actual or potential conflicts, particularly between environmental and social/economic agreements or instruments, with a view to ensuring that such agreements or instruments are consistent. Where conflicts arise, they should be appropriately resolved;

    h) To study and consider the broadening and strengthening of the capacity of mechanisms, inter alia in the United Nations system, to facilitate, where appropriate and agreed by the parties concerned, the identification, avoidance and settlement of international disputes in the field of sustainable development, duly taking into account existing bilateral and multilateral agreements for the settlement of such disputes.

An Important Commitment


Climate change negotiators and decision-makers should affirm the commitment that people, communities, and nations will not be in violent situations due to conflicts that arise as a consequence of climate change. Politicians, diplomats, and specialists who attend the Climate Change meetings should consider conflict prevention measures and resolution mechanisms.

The climate change crisis challenges people throughout the world to invent and implement innovative ways to mitigate and thwart climate changing causes and effects. The crisis calls for new methods for nations and people to overcome differences and work together with the objective of preventing, minimizing and resolving conflict arising because of limited resources and/or the effects of climate change.

Construction of a new global conflict prevention and resolution infrastructure is critical to a comprehensive international climate change policy. Such construction can start with the Copenhagen conference, with discussions of conflict prevention and resolution along side the negotiations of scientific and technical issues of climate change.

The authors’ affiliations:


Gregg Walker, Ph.D., Professor of Speech Communication, Oregon State University, USA (gwalker@orst.edu)


Tina Monberg, Mediator, exam. psychotherapist and lawyer, Mediationcenter Ltd., Denmark (tm@mediationcenter.dk)


Kenneth Cloke, Mediator, President of Mediators Beyond Borders, California, USA (kcloke@aol.com)


Jens Emborg, Ph.d. MMCR, Associate Professor of Environmental Conflict, University of Copenhagen, Denmark (jee@life.ku.dk)


Mie Marcussen, M.Sc., MMCR, Mediator, President of Nordic Mediators, Private Consultant, Denmark (kontakt@miemarcussen.dk)


Lone Clausen, MMCR, Developing Aid and Crises Expert, Private Consultant, Danmark (lc@direkte.org)


Vibeke Vindeløv, Dr., Professor of Mediation and Conflict Resolution, University of Copenhagen, Denmark (Vibeke.Vindelov@jur.ku.dk)
 

Negotiating with North Korea

Check out today's ADR Prof Blog post What are their interests?  Negotiating with North Korea.  Excerpt below.

North Korea recently sentenced two U.S. journalists, Laura Ling and Euna Lee, to 12 years of hard labor for illegally crossing the North Korean border.  By all accounts imprisonment in North Korea, especially in a labor camp, is horrible and potentially life-threatening.  The question now is whether their early release can be negotiated. 

 

This situation poses an extreme example of a difficult negotiation.  Power and culture are key factors.  The challenge in this negotiation is to understand what matters to the North Koreans and to use that understanding to work towards an agreement to release Ling and Lee.  But gaining this understanding is complicated because the North Korean government keeps the country closed to most foreigners which means that few U.S. citizens have experience in North Korea, much less experience negotiating with the government.  Reportedly the State Department is engaged on Ling and Lee’s behalf—but without full diplomatic representation that engagement is limited (particularly when the North Koreans prevent the U.S. Envoy for North Korea from even entering the country).  Potential candidates to act as negotiators include New Mexico Governor Bill Richardson (who has successfully negotiated with the North Koreans in the past) and former Vice-President Al Gore (who owns Current TV, the company the journalists were working for).

 

Continue reading here.

 

Time to Revisit the Resolution of the Cuban Missile Crisis

 

the president [Kennedy] recognized that, for Chairman Khrushchev to withdraw the missiles from Cuba, it would be undoubtedly helpful to him if he could say at the same time to his colleagues on the Presidium, "And we have been assured that the missiles will be coming out of Turkey." And so, after the ExComm meeting [on the evening of 27 October 1962], as I'm sure almost all of you know, a small group met in President Kennedy's office, and he instructed Robert Kennedy—at the suggestion of Secretary of State [Dean] Rusk—to deliver the letter to Ambassador Dobrynin for referral to Chairman Khrushchev, but to add orally what was not in the letter: that the missiles would come out of Turkey.

Ambassador Dobrynin felt that Robert Kennedy's book did not adequately express that the "deal" on the Turkish missiles was part of the resolution of the crisis. And here I have a confession to make to my colleagues on the American side, as well as to others who are present. I was the editor of Robert Kennedy's book. It was, in fact, a diary of those thirteen days. And his diary was very explicit that this was part of the deal; but at that time it was still a secret even on the American side, except for the six of us who had been present at that meeting. So I took it upon myself to edit that out of his diaries, and that is why the Ambassador is somewhat justified in saying that the diaries are not as explicit as his conversation.

From Sorensen comments, in Bruce J. Allyn, James G. Blight, and David A. Welch, eds., Back to the Brink: Proceedings of the Moscow Conference on the Cuban Missile Crisis, January 27-28, 1989 (Lanham, MD: University Press of America, 1992), pp. 92-93.

 

Sotomayor and Women's Organizations

Women in the United States Judiciary

2009 State Court Judges in the US:

  • 4,325 women of 16,950 total
  • 26% women

2008 Federal Court Judges

  • 47 of 164 active judges on the thirteen federal courts of appeal are male (29%).
  • 25% of United States district (or trial) court judges were women in 2008.

Women in Corporate America

  • In November 2002, women represent 15.7% of the corporate officers in America’s 500 largest companies. These percentages are up from 12.5% in 2000 and 8.7% in 1995.
  • In April 2002, there were six female CEOs in the Fortune 500 and a total of eleven in the Fortune 1000.
  • The number of women corporate officers:  2,140 out of 13,673.
  • The number of women corporate officers:  2,140 out of 13,673. T
  • Almost 95% or 2,141 of the top earning corporate officers are men, compared to only 188 or 5.2% of women top earners in the Fortune 500.

Earnings on the Dollar Compared to Men

  • Asian/other women: 67 cents
  • White women: 59 cents
  • African American women: 57 cents
  • Hispanic women: 48 cents

Family

  • Women managers are more likely to be single parents than male managers.
  • Women managers who are unmarried and have children under 18: 22 percent African-American, 15 percent Hispanic, 8 percent White, and 5 percent Asian/other women.

Women Lawyers

 JOIN THE PROFESSIONAL WOMEN'S NETWORK OF SOUTHERN CALIFORNIA TODAY!  We're "on the ground" locally and online nationally.  Building business one relationship at a time.

An Interview with Michael Young on the $4.1 Billion Arbitration Award

Anatomy of an Arbitration Disaster

A Los Angeles Superior Court judge on May 28 affirmed an arbitration award of more than $4.1 billion, sending shock waves through the labor and employment bar in California.

The award went to Paul Thomas Chester, a former executive at iFreedom Communications Inc., who brought a wrongful termination suit against his former employer, its affiliated businesses and the founder, Timothy Ringgenberg.

The case ended up before an arbitrator, William F. McDonald, a retired supervising judge of the Orange County, Calif., Superior Court's complex civil litigation panel, who now works at JAMS.

Michael D. Young, a partner in the Los Angeles office of Atlanta's
Alston & Bird, wrote about the award on his firm's labor and employment blog, "Who's the Boss?" Young spoke to The National Law Journal about the lessons that employment lawyers and their clients could learn from the outcome in this case regarding arbitration agreements and the arbitration process.

Young also broke down the award, to explain how the arbitrator came up with such an astronomically high number.

Read the full interview here.

Negotiating Cooperation

Negotiating Justice: Anchoring, Bias, Dad and Sotomayor

I do not recall the day on which I learned I spoke with an "American" or "West Coast" accent but I remember it coming as a surprise to me.  As Cristof, the director of The Truman Show says of his "creation," the happily oblivious Truman Burbank,  “We accept the reality of the world with which we are presented.”

The fact that people are still questioning whether a woman, an African American, a Latina or (gasp:  clearly for a more equitable society) a gay, bi-, Lesbian or transsexual, jurist will be "biased" by his or her unique perspective is dispiriting to say the least.  As many people in high (the New York Times, CNN) and low (twitter) places have rightly pointed out, no one asks whether a white man will bring his prejudices to the Bench.  Why?  Because white men "have no accent."  The dominant culture does not think of itself in terms of race (it doesn't have to) and the people with power (still primarily white men) do not need to ask themselves thorny questions about their attitudes toward their own race and gender. 

Here's an example from the New York Times:  Speeches Show Judge's Steady Focus on Diversity, Struggle

WASHINGTON — In speech after speech over the years, Judge Sonia Sotomayor has returned to the themes of diversity, struggle, heritage and alienation that have both powered and complicated her nomination to the Supreme Court.

She has lamented the dearth of Hispanics on the federal bench. She has exhorted young people to value immigration. She has mulled over the “deeply confused image” America has of its own racial identity. And she has used on more than one occasion a version of the “wise Latina” line that she has spent much of this week trying to explain.

Today is my father's birthday.  It is also the one-year anniversary of his death, so I'll ask you to forgive my stream of consciousness post.  I promise to tie it up in a bow by post's end. 

Dad -- a dust bowl refugee -- a lawyer at 42 and Bench officer by 52, used to say that there "should be dumb politicians, to represent the dumb people."  He was exaggerating, of course, to make the point that a representative government should represent all of the people and not just the privileged majority. 

Was Dad's life-view affected by his humble origins, his "struggle" to overcome his lack of a completed high school education and a culture of poverty, as well as the burdens of his gender in mid-Century America (burdens which assumed only men were obliged to work to support their families)?  You bet it was. 

Did anyone ask whether Dad was going to bring a white, male, depression-era, bias to the Bench?  No.  Did he?  Yes of course he did.  Still, Dad leaned as far away from his mid-20th Century white male privilege as he could, drafting "marital" agreements for gay clients from the late '60s until he went on the Bench; voting against his economic self-interest in every Presidential election (proudly asserting that he paid more in federal income tax than he used to make annually) and supporting all civil rights movements -- African-American, Chicano (the term of that day), women and gays. 

Dad was a good guy aware of his biases and willing to push against them.  It is not, however, possible for any of us to be without bias as this article in the Cornell Law Review -- Blinking on the Bench: How Judges Decide Case -- demonstrates. 

Below:  me and Dad, may he rest in peace.  9 June 1924 to 9 June 2008

I've had this article in my files for some time because it's about anchoring -- the principle that negotiators will be influenced by any number that enters the negotiation environment, no matter how random.  Below is an excerpt from "Blinking" demonstrating the power of anchoring on judicial decisions.  Note the repeated use of the word "intuitive" - a word usually associated with women but not only a woman's talent or trait. (All emphases supplied)


The first example of intuitive judicial decision making arises from studies of a phenomenon that psychologists call ―anchoring.  When making numeric estimates, people commonly rely on the initial value available to them.100 This initial value provides a starting point that ―anchors the subsequent estimation process.  People generally adjust away from the anchor, but typically fail to adjust sufficiently, thereby giving the anchor greater influence on the final estimate than it should have.In short, ―the number that starts the generation of a judgment exerts a stronger impact than do subsequent pieces of numeric information.

We have found that anchors trigger intuitive judicial decision making. In one study, we demonstrated that a demand made at a prehearing settlement conference [$10 million] anchored judges‘ assessments of the appropriate amount of damages to award. . . . The $10 million anchor influenced the judges. Judges in the control group awarded a mean amount of $808,000 and a median amount of $700,000, while judges in the anchor group awarded a much larger mean of $2,210,000 and median of $1 million.107 Table 5 shows the impact the anchor had on their judgment.

In another study, we tested whether a motion to dismiss would also affect judges‘ damage awards. We presented participating judges with a similar fact pattern and asked judges in the control group, ―[H]ow much would you award the plaintiff in compensatory damages? We gave the judges in the anchor group the same background information, but also told them that ―[t]he defendant has moved for dismissal of the case, arguing that it does not meet the jurisdictional minimum for a diversity case of $75,000.‖ We asked these judges to rule on the motion, and then asked them, ―If you deny the motion, how much would you award the plaintiff in compensatory damages?

Because the plaintiff clearly had incurred damages greater than $75,000, we viewed the motion as meritless, as did all but two of the judges.Nonetheless, the $75,000 jurisdictional minimum served as an anchor and resulted in lower damage awards from those judges exposed to it. The judges who had not ruled on the motion awarded the plaintiff an average of $1,249,000 (and a median of $1 million), while those judges who ruled on the motion to dismiss awarded the plaintiff an average of $882,000 (and a median of $882,000).112 Thus, the $75,000 jurisdictional minimum anchored the judges‘ assessments, as they awarded roughly $350,000 (or nearly 30%) less on average.

Both anchoring studies suggest that the anchors had a powerful influence on judgment. This was true both when the anchor bore essentially no relation to the magnitude of the claim and when the judges knew full well that they were supposed to ignore the anchor. In both cases, the anchor triggered intuitive, automatic processing that the judges were unable to override.

This is what we litigators and trial attorneys do for a living.  We try to "anchor" judges.  We "spin" the facts and expand the outer reaches of the law in the way that helps our clients.  We read judicial profiles to know as much about a Judge:  his or her background; politics; charities; family life and prior decisions as possible so that we can  'speak his/her language./**  No one knows better than litigators and trial lawyers how important an individual judge's background, ethnicity, political affiliations and the like are.

When I was litigating a 9-figure environmental coverage action, I routinely brought color-coded coverage charts that represented my point of view to every oral argument.  Opposing counsel always griped and the Judge always overruled his objections because my charts made the complex and sophisticated coverage analysis easier to understand (from my point of view).  What perplexed me was opposing counsel's failure to ever do the same.  The Judge ruled in my favor on every major issue before her and I guarantee you it wasn't because I was "right."

(below, a sample coverage chart)

Meta-Anchoring

As you can see from the coverage chart example, it's not just numbers entering the negotiation environment that influence decision-makers, it's also the way in which the information pertinent to the case is characterized.  I don't need to tell lawyers this, all of whom were weaned on this proposition:  if you don't have the facts, argue and law and if you don't have the law argue the facts.

In Lax & Sebenius' brilliant 3-D Negotiation, they recommend "meta-anchoring" your preferred negotiation resolution as follows:

To meta-anchor effectively, look creatively at various ways to characterize the negotiation problem.  some characterizations have clear implications for the appropriate kind of resolution, or at least the most appropriate prcess and personnel needed to get there.  For example, framing a negotiation as "a routine extension of an existing deal" may receive far less scrutiny than approaching it as a "new contract," even when the substantive issues are identical.

The authors go on to describe a negotiation in which a small company seeking to be acquired by a larger one "identified two likely competing meta-anchors."

The first viewed the transaction as the purchase of R&DCo on a stand-alone basis.  the second Viewed the deal as an attempt to create synergy by combining R&DCo's technological expertise with Acquirer's sales, maketing and distribution; by using R&D's technologies in other markets; and by using the buyer's greater size to win new sales for R&DCo.  In this way, it would be possible to divide that synergy between the two companies.

The approach adopted was as follows:

"Almost monthly, we turn down an approach from potential acquirers who want to value us on a stand-alone basis.  We're interested in talking to you because of the significant poential synergy between our two companies.  If you want to discuss how we value and divide the joint gains from combining our companies, we're very interested in talking with you.  However, if you only want to consider our stand-alone financials, you'll be wasting our valuable time as well as ours.  Do you think it makes sense to proceed?

The small company re-defined its value as it's future value merged with the Acquirer rather than its present unmerged value.  Then the small company suggested that the expanded value be divided equally because that value was due to both company's contributions in equal measure.  That's "meta-anchoring" at its best.

So back we come to Sotomayor and her nomination to the Supreme Court Bench.  Will she bring a viewpoint heretofore unrepresented there?  Yes she will.  Does that give her an unfair advantage over all the highly qualified white men who might have been nominated in her place?  I suppose it might but our job in populating the Supreme Court bench is not to find the numerically "best" person for the job (highest LSAT score; first in class; editor of law review; most charitable; most acceptable disposition) but the best person to round out the current bench so that it is somewhat representative of the people that it serves.

Dad would have supported Sotomayor and on his birthday I'd like to thank him again for instilling in me the values that make me a supporter too.

_____________________

**/  I heard Constitutional Law scholar and Dean of the new U.C. Irvine School of Law Erwin Chemerinsky speak at the annual Constitutional Rights Foundation dinner recently.  Rightly calling today's Supreme Court the "Kennedy Court," he admitted to pandering, saying "I'd put a photograph of Kennedy on my Petitions for Cert if I could."

More Praise for Joint Sessions in Today's Daily Journal

JUNE 9, 2009  |  FORUM

When It Comes to Joint Session Negotiations, Talk Isn't Cheap

By Victoria Pynchon

Whether parties to litigation should engage in joint session bargaining at some point in the process is a hot topic at the moment because joint session practice is nearly a dead letter in one of the most active and sophisticated mediation markets: Los Angeles.

Most attorneys do not like to begin their mediated negotiations with a joint session and neither do many mediators. The reason most often given is everyone's desire to avoid a polarizing set of zealously adversarial presentations.

The joint session, however, was never meant to be a mini-trial or reiteration of the parties' adversarial positions - positions with which they've been living, and defending their clients against, for weeks, months, years, even decades. The joint session was designed to give the parties with the dispute - the clients - the opportunity to brainstorm mutually acceptable solutions to their undeniably mutual problem: the sinkhole of litigation.

The news for mediation advocates (litigators and trial attorneys) is that avoiding joint sessions may deprive the parties and counsel of the "small talk" necessary to put the parties into a collaborative, even generous mood.

Click here to read the entire article

Foreclosure Mediation Becomes Mandatory in Connecticut

So much for the mediation carrot & the principle that "mediation is a voluntary process."

Foreclosure Mediation Becomes Mandatory

Program staffing, caseload expected to double

A voluntary foreclosure mediation program has worked so well in the eyes of legislators that the General Assembly pushed through a measure to make the program mandatory starting July 1.

Nearly 60 percent of those participating in the voluntary program have remained in their homes, and supporters contend that even more distressed mortgage holders will benefit from being forced into mediation. To date, only about 34 percent of those eligible for mediation have made use of the voluntary program, according to the Judicial Branch.

Continue reading here.

Update on the $4.1 Billion Arbitration Award Confirmed as Judgment by Los Angeles Superior Court

Here's a copy of the Judgment Confirming Final Arbitration Award.

Comment later.  In the meantime, Money Money Money from Cabaret.

 

Who ME? Manipulate? Negotiating Impartiality in Mediation

I was reading a great article in the New York Times this morning about "blue sky" transparent diplomacy in light of Obama's Cairo speech and was intrigued by the phrase "constructive ambiguity" in international diplomacy.

The full Obama-Cairo Speech below:

Check out Experts Say Full Disclosure May Not Always Be Best Tactic in Diplomacy.  While citing the importance of back channel communications, the author quotes "one of the nation's most experienced career diplomats and former under secretary of state"  as identifying the two "home truths" in international diplomacy:

One is, don’t tell lies. The other is, you can say more in private than you can in public, but they have to be consistent.

This brought to mind not simply the one or two memorable instances in which I caught mediators in deception during my litigation practice, but a recent experience communicated to me by a friend about one of those $15/K a day mediators.  I ask for the full 411 on these mediations because I'm intrigued by the value $15K/day buys.  Here's the story.

My friend called me during a recent mediation to tell me that his mediator had just left the room after leaving this message with his "team."

Your opponents just asked me to make a mediator's proposal of $X.Y million.

Assuming that this disclosure was not a breach of confidence, I had to ask myself whether it was simply a (manipulative) hypothetical "offer" approved by the other side in form and content that the other side could safely disown.  In either case, I felt it was (a) unethical - i.e., a breach of confidence; or, (b) partial (not neutral, which is also unethical).

Someone could likely talk me down off the ledge on this one but I'm having trouble seeing it as permissible mediator behavior.   Assuming it wasn't a breach of confidence, it raises the question whose ox is being gored here?  How much manipulation by the mediator is acceptable - is ANY manipulation acceptable and if the mediator is manipulating, is it POSSIBLE for him/her to do so without also being PARTIAL?

I have "caught" mediators in deception during my practice (and have not been quiet about my experience).  In case mediators do not recall legal practice, let me remind them that counsel talk to one another and despite our differences usually trust one another more than we trust our mediator.  If you lie to one of us or disclose something you shouldn't be disclosing, don't let the separate caucuses in which the mediation is taking place mislead you about the state of "play" in the litigation.  If the mediator is dishonest, will be found out.

If we do not hold ourselves to the absolute HIGHEST POSSIBLE ethical standards, our credibility, and our careers, are seriously at risk.

Would any of my fellow mediate.com bloggers like to weigh in on this?  Geoff Sharp, Jeff Thompson, Phyllis Pollack, Stephanie West Allen, Nancy Hudgins, Colin Rule, Tammy Lenski, Josh Weiss, Jan Frankel Schau, Jeff Krivis, Mariam Zadeh, John DeGroote, Steve Mehta, Arnold Zeman?

Barb North's Great Big Fat Reality TV Mediation Screen Test

This is a great discussion of mediation by local mediator Barb North -- another screen test for the mediation reality television show that will likely never become a reality because . .  . . I understand the producers are having trouble convening!

Check out Barb's great article on Conflcit Coaching at mediate.com here.

The 411 on Barb below.

Barb North has worked as a mediator and negotiator for over fifteen years, and has designed and delivered more than 2,500 trainings in such areas as Conflict Resolution, Mediation, Communications Skills, Acting, Couples Communication, Improvisational Theater, Speaker's Skills and Stand-Up Comedy.

She is the shorter half of the Comedy Team of Barb and Steve North. In addition to training and mediation, Barb has been a Comedian/Performer/ Writer/Producer with her husband, Steve for over 25 years. This background explains her unique ability to present trainings, give talks, conduct seminars, facilitate events, act as an MC or appear as a talk show guest AND incorporate an entertaining spin into the content. Her presentations are fun, informative, and funny.

Barb has designed and implemented custom conflict management programs for numerous organizations and businesses, including extensive work with the National Organization of Girl Scouts of the USA and individual Girl Scout Councils throughout the country, Los Angeles County, Voluntary Mediation Services, the EEOC, Girl Scouts of the USA and the NASD. She has written and produced corporate training films, led seminars, retreats and facilitated group discussions.

My Great Big Fat Mediation Reality Show Screen Test

 I don't know why this "screen test" for a mediation reality television program appears on YouTube but I ran across it today cruising Bing and it's pretty expressive of my passion for mediation so thought I'd share it with my readers.

 

 

Six Ways to Insure Your Construction Mediation Fails at Construction Law Musings

How smart is Chris Hill at Construction Law Musings to have a guest blogger every Friday?  That's just the kind of collaborative problem-solving you need in your litigation counsel, particularly when you're facing multi-party construction litigation.  This week, Chris was kind enough to ask me to add to the construction law conversation taking place every day at his tremendously useful, entertaining and enlightening blog.  Excerpt from Six Ways to Insure Your Construction Mediation Will Fail below.

1. Leave the Decision-Makers at Home

A mediation – particularly a multi-party construction mediation – is more drama than law; more character than rights; and more emotion than reason. Mediation, like trial, requires the lawyers to restore the texture, dimensionality, morality and personality back into the dispute that we lawyers flatten for the purpose of satisfying the law’s requirement that we litigate only the “relevant” facts necessary to satisfy legal “forms of action.”

On game day, it’s not the mediator, but the parties themselves who must decide who is bluffing and who is not; what allocation of responsibility among the parties feels fair; whose claims of poverty or freedom from liability have the ring of truth; and, which parties have deeper pockets or greater negotiation flexibility than their attorneys have claimed.

Just as you wouldn’t want your jury to “call in” their verdict, you don’t want the mediation decision-makers miles away from the mediation table when the cards are being played. Remember that people seek out lawyers only when they feel they have suffered an injustice. Righting that wrong requires more than money or dismissal. It requires the belief that you, the attorney, have gotten your client the very best deal possible in light of the facts finally revealed, the personalities involved and the hard realities faced.

2. Leave Early Because the Other Parties are Acting in Bad Faith

Continue reading here.

Michael Webster Encourages Franchisees to Attend Harvard's Program on Negotiation

Check out franchise law blogger Michael Webster's post at Blue Mau Mau on the Harvard Program here.  Excerpt below. 

How do we know that people are bad negotiators? For more than 30 years, theorists have been devising little bargaining puzzles. In these very simple problems, people routinely leave money on the table. Routinely fail to make the best possible deal.

Why? There are many types of answers, and my expertise is looking at how people failed to manage the process of both expanding the pie, creating value, and demanding their fair share of the pie, claiming value because they failed to comprehend their strategic position.

The process of managing or mismanaging the creating/claiming value process has been extensively studied, starting in the 60's with Walton and McKersie's A Behavioral Theory of Labor Negotiations.

One explanation of why people are bad negotiators, something Bob Mnookin stresses, is that people often look past their interests in common and go directly to undue focus on adverse interests.

We have all heard the term "win win", but what does it really mean? Bob Mnookin talks about the Program on Negotiation, an executive training program at Harvard.

 

 

Negotiating the Recession with Poetry: "We Can't Be Forever Blessed"

Sometimes, all that stands between us and giving up (R.I.P. David Carradine) is the knowledge that we are not in this alone and "cannot be forever blessed."  Paul Simon's ** American Tune from 1975, another time when the American Economy was flagging.

There's something about this song that always brings tears to my eyes at the same time as it makes me feel connected to something greater than myself.

Words & music by Paul Simon


Many's the time I've been mistaken
And many times confused
Yes, and I've often felt forsaken
And certainly misused
Oh, but I'm all right, I'm all right
I'm just weary to my bones
Still, you don't expect to be
Bright and bon vivant
So far away from home, so far away from home

And I don't know a soul who's not been battered
I don't have a friend who feels at ease
I don't know a dream that's not been shattered
or driven to its knees
but it's all right, it's all right
for we lived so well so long
Still, when I think of the
road we're traveling on
I wonder what's gone wrong
I can't help it, I wonder what's gone wrong

And I dreamed I was dying
I dreamed that my soul rose unexpectedly
And looking back down at me
Smiled reassuringly
And I dreamed I was flying
And high up above my eyes could clearly see
The Statue of Liberty
Sailing away to sea
And I dreamed I was crying

We come on the ship they call the Mayflower
We come on the ship that sailed the moon
We come in the age's most uncertain hours
and sing an American tune
Oh, and it's alright, it's all right, it's all right
You can't be forever blessed
Still, tomorrow's going to be another working day
And I'm trying to get some rest
That's all I'm trying to get some rest

_________________

**  Paul Simon's been the sound track of my life.  In 1965, when I graduated from Middle School (then called "Junior High") my graduation speech was built around Simon's "I Am a Rock" (which Simon describes here as his "most neurotic song.")  Naturally.  I was 13 years old!

 

 

The ABC's of Social Networking from Anna Laura Brown

$4.1 Billion JAMS Arbitration Award Confirmed by Court!

CORRECTION

Dear Ms Pynchon,

I write concerning the following statement on your website:

I looked this case up on the L.A. Superior Court's website. Assuming I have the right case number (BC353567), this appears to be a default judgment, a fact not mentioned in the press
release.

The statement is incorrect, although I think I understand the source of the error.  There were four iFreedom defendants in the case as initially filed:  Timothy Ringgenberg and the three corporate
entities.  One of those corporate entities defaulted.  The other three moved to compel arbitration.  The $4.1 billion judgment confirmed the arbitration award against the three arbitrating defendants.  It was
not a default judgment against the defaulting defendant.

I would be grateful if you would make the correction.

Many thanks.

From the California Punitive Damages Blog:

UPDATE: I looked this case up on the L.A. Superior Court's website. Assuming I have the right case number (BC353567), this appears to be a default judgment, a fact not mentioned in the press release.

 

UPDATE FROM THE LOS ANGELES DAILY JOURNAL -- FULL ARTICLE FOR SUBSCRIBERS AT LINK WITH COMMENTARY FROM SETTLE IT NOW'S GOOD FRIEND AAA ARBITRATOR JAY MCCAULEY (excerpt of DJ article below):

Arbitrator William F. McDonald, a retired Orange County Superior Court judge, found iFreedom Communications International Holdings Limited, and its founder, Timothy Ringgenberg, liable for more than $975 million in compensatory damages and awarded nearly $3 billion in punitive damages, as well as interest and penalties, to Paul Thomas Chester.

As chief marketing officer for iFreedom, Chester was promised commissions of 5 percent on the company's gross revenue. When he did not receive the compensation and confronted iFreedom, Chester was terminated without cause, according to his attorneys, Scot Bernstein and Steve Buchwalter.

Ringgenberg concealed data on gross revenue during discovery, even after McDonald ordered him to turn it over, the arbitrator found. Chester's award was therefore based on information Ringgenberg presented to the company's shareholders, including monthly revenue of $535,000 and monthly growth rates of 10 percent to 20 percent.

                                    *                    *                    *

Bernstein said the award illustrates how quickly damages, interest and penalties against an employer can snowball into a large sum. In arbitration, awards are most often binding.

Some employers, Buchwalter said, might now rethink whether arbitration agreements are in their best interest.

But for many businesses, the benefits of arbitration will continue to outweigh the risks, said Jay McCauley, an arbitrator on the American Arbitration Association's employment panel, who is not affiliated with this case.

With binding arbitration, "the good side is you're done," he said. "The bad side is if the result comes out big and contrary to what you've expected, there's no place to go. You're flying on a trapeze without a safety net.

"Some employers may say, 'We still like the benefits of arbitration - avoid the jury, faster hearings, someone who knows the case - but boy, maybe we should think twice about having no safety net at all, no chance when things go wayward,'" he said.

 

All I have now is the Plaintiff's attorneys' own press release.  Excerpt below.

 

SACRAMENTO, Calif., June 2 /PRNewswire/ -- Released today by Law Offices of Scot D. Bernstein, A Professional Corporation, and Law Offices of Steve A. Buchwalter, P.C.: In what may be a record, the Los Angeles County Superior Court has issued a $4.1 billion judgment confirming a JAMS arbitration award. The defendants, including iFreedom Communications International Holdings, Limited, and its founder, Timothy Ringgenberg, were found liable for compensatory and punitive damages in an employment dispute with Paul Thomas Chester, their former Chief Marketing Officer.

Mr. Chester became the defendants' Chief Marketing Officer in June 2004. The defendants' promises to pay him certain commissions and overrides on gross revenues, his right to receive company stock, and the other elements of hiscompensation package reflected his experience in building marketing organizations. "When the promised compensation was not forthcoming, Mr. Chester raised the issue with his employers. By then, the employers had obtained the benefits of Mr. Chester's knowledge and expertise, and they quickly terminated him without cause," Scot Bernstein said.

Mr. Chester sought the assistance of legal counsel. Due to the lack of cooperation from his former employers, Mr. Chester was forced to file suit. The defendants, in turn, moved to compel him to arbitrate the case pursuant to an arbitration clause in the employment agreement.

The arbitrator, a retired judge, determined that the defendants had obtained Mr. Chester's services by means of false representations and fraud. In addition to all unpaid salary, commissions, travel expense reimbursements, and compensation for unissued company stock and unreturned intellectual property, the arbitrator awarded statutory penalties, interest, attorneys' fees, and punitive damages equal to three times the compensatory damages. 

(I don't imagine this is something JAMS will want to crow about)

Here, by the way, is the 411 on the Defendant against whom this spectacular award was made (from Buisness Week)

IFreedom Communications International Limited provides communication services via the Internet using the Voice over Internet Protocol (VoIP) and Wireless Fidelity (WiFi) technology. The company offers Global Connect (GC), which is a global network providing voice communication services. iFreedom Communications is based in Hon Kong.

Dah Sing Life Building

11th Floor

99 Des Voeux Road Central

Hong Kong,  

Hong Kong

Any bets on whether this judgment is collectible?

Negotiating Our Own Survival with One Human Story

Negotiating Employment: A 12-Step Plan

This article (Relationships are Key in Job Searches) flogging this book (Whacked Again! Secrets to Getting Back in the Executive Saddle) landed in my email box from law.com this morning.

I have to say that I agree with magazine mogul Tina Brown that we're in a "gig economy" not a job economy.  What does that mean?  It means doing an inventory of your dreams right next to a realistic assessment of your skills, along with a time line for getting your own business up and running, with or without investors, remembering that in a "gig economy" barter is a perfectly acceptable alternative to cash and in the age of the internet (Networking Wisdom in Mentoring Circles) hundreds of marketing tools that can reach millions of people globally and thousands of people locally, are right beneath your fingers on the keyboard connected to the computer that brings you the most exciting set of opportunities since we decided to send men to the moon -- social networking (now there's a proper run-on sentence, the reward for which is buying myself a new copy of Elements of Style which every job-seeker and new entrepreneur should do post-haste since written communication is the key to successful online business development). 

That said, for those who NEED A JOB RIGHT NOW to pay off their law school loans (remembering that dischargable or not, we no longer have debtors' prisons), here's today's Law.com advice:

The book gives a 12-step plan for landing a new job: 1. finding passion and creating vision; 2. creating a brand; 3. creating a value proposition; 4. creating stories; 5. developing a marketing plan; 6. getting a message out; 7. creating a marketing document; 8. meeting the friend's friend; 9. power résumé; 10. preparing for an interview; 11. negotiating terms; 12. landing the job; and the next step.

The book emphasizes the importance of keeping up contacts after landing in a new job -- knowing that another may search may be ahead. But it suggests maintaining contacts by looking for ways to help other people with a "pay-it-forward" approach. "We all need help at some point," the book says. "The concept is that you are thankful for those who helped you in the past."

Villwock told the group that in his experience, the most successful CEOs and other professionals are those who are most passionate about their work. "When they stop having fun, that's when they stop and go on to the next job," he said.

He also advised the group that attitude and personal skills are as important as professional credentials. From observing executives, he said, "half their success has nothing to do with performance on the job. It has everything to do with ability to sell themselves and build trusted relationships."

If you substitute business plan for power résumé and starting the business for landing the job, you've got a perfectly great recipe for engaging the gig economy eagerly awaiting your contribution.  Listen up!  You didn't get the highest PSAT and SAT scores, graduate cum, magna or summa, ace the LSAT, study your $#@% off, learn lawyering skills, conquer your fear and pass the bar exam to be hat in hand looking to be someone's apprentice galley slave. 

Think about it and join the rest of the gig economy. 

We're looking forward to your unique and valuable contributions to the new economy right now!

The writing on the inside of the secret entrepreneurial decoder ring?  MONETIZE EVERYTHING!

AND WOMEN!!  JOIN THE PROFESSIONAL WOMEN'S NETWORK OF SOUTHERN CALIFORNIA.  WE'RE ONLINE NATIONALLY AND "ON THE GROUND" LOCALLY.

Mediation without the Hammer of Litigation?

Worth reading from last week's Mediator blah blah blog (the Lord Chief Justice arms himself with a hammer); just in case you missed it or didn't download the .pdf as I just did this morning.  Thanks Geoff!

Let us take a blank sheet of paper and imagine that we are trying to create a system which would provide a satisfactory means of resolving civil disputes, bearing in mind, without being over dramatic, that in the end, it becomes almost inevitable that some civil disputes will end up in criminal activity. I do not think I am exaggerating.

A few years ago I was taught a lesson by a very intelligent young woman in one of our County Courts. We were talking of the cost – the exorbitant cost as it was then - of taking proceedings for very small sums of money. She explained to me that the cost of just starting the proceedings would represent her children’s shoes – she thought this a disproportionate cost. She knew areas of the City where her husband could go and find someone who would throw a few bricks through a window for £50 – no doubt she was right. And, perhaps, that would be more effective, she suggested than a judgment and getting back the compensation. A little self-help could end up with a brick being used against an individual and a few bricks being thrown back in return.

In short, a civilised community has to provide a system which means that those in dispute can refer to an independent tribunal for a decision. It is a further requirement that the system should actually exist and be capable of being used. If court fees are disproportionate or if legal fees are disproportionate the system is not open to those who cannot afford its processes.

My experience in practice at the bar was that some of my clients wanted their disputes sorted out. They had tried to sort them out before they got to the stage of seeing a solicitor and going to counsel. Others of my clients, or should I say, it was always my opponent’s clients who were unreasonable, didn’t want to sort the dispute out at all. There were all sorts of reasons. One is that very human characteristic sometimes but not always an attribute, the indomitable bloody mindedness of the bull dog.

So that on your sheet of paper the system which we are creating has to cater for both those who wish to settle and those who do not. If both sides want to sort out their dispute, and they have tried and failed, being sensible people, their next step would not be to come to lawyers, but to go and ask someone they trust to try and sort out their dispute, to see where there are points of disagreement and points of agreement. Let’s give it a name. Why not call it “mediation”? A successful mediation is a wonderful outcome. But with the best will in the world, it may not always happen. So you have to have a formal system.

You also have to have a formal system when one side or other to the dispute simply has no intention of sorting it out save in court and at the end of a protracted and expensive court proceeding. That is more troublesome. That may be the party with pots of money trying to squeeze the party with modest means away from the court process. That may mean that the party with real merit in his or her case is deprived of the proceeds of litigation for many years to the advantage of the intransigent party. It may be that the intransigent party is entirely justified and believes that there is no form of mediation which would be acceptable either to it or indeed in the end to the other side.

Now time and time again, in practice as a barrister and now as a judge, I have been perfectly well aware that if only the parties had come together at an early stage, long before they saw their counsel, long before they got to the door of the court, they could have resolved their dispute at a fraction of the cost and without the emotional expenditure and commitment of time and energy required by the litigation. One of the ways I used to try to persuade clients to settle was to remind them of a Chinese curse – “may you be involved in a litigation in which you are in the right.”

One vivid memory is a boundary dispute, or rather a dispute over a garden. My opponent and I turned up at the County Court armed with an abundance of authorities because we had to address limitation periods, laches, injunctive relief, indeed just about every facet of civil justice. In the end we negotiated a settlement in which he and I, not the judge, went to the land and armed not with books but with hammers and stakes literally pegged out the property into equal halves. The case was settled. In truth my opponent and I had acted as mediators. How much better for everyone if the mediation had happened much earlier.

Can we just take a long term view? Every few years, or about every ten years, there is a great hullabaloo about the cost of civil litigation. Arbitration, after all, is a system of avoiding the court process. Do you remember when employment tribunals began? These were to be informal meetings at which the opposing parties would put their cases to a tribunal, almost a form of palm tree justice.

Consider now how much more complicated and expensive the processes have become.
I do urge the Council to recognise this danger. The mediation process, could, unless danger is recognised and addressed, particularly if it is part of the court process, may eventually, and quite unintentionally, and by unforeseen accretion become increasingly formalised and procedural. It really must not eventually become just one more part of the expensive process that all of us are trying to avoid.

Negotiating with Difficult People for Lawyers