Negotiation & Settlement
Direct discussion between parties (or their representatives) to resolve a dispute without court intervention.
Notice: These services are intended for and work best with small claims matters, but the tools and guidance can be used for any civil matters that may benefit from alternative dispute resolution.
Negotiation Strategies
Identify your BATNA (Best Alternative to a Negotiated Agreement) before entering negotiations
Research the strength of your legal position and likely outcomes at trial
Begin with a clear demand letter that establishes your position
Document all settlement discussions and offers in writing
Consider the cost and time of litigation when evaluating offers
Elements of a Strong Settlement Agreement
If negotiations succeed, make sure your settlement agreement includes all of these elements:
Clear identification of all parties
Detailed description of the dispute being resolved
Specific settlement terms (payment amount, schedule, or other actions)
Comprehensive mutual release of all claims (known and unknown)
Confidentiality clause (if desired)
Non-disparagement clause
Governing law (Pennsylvania) and jurisdiction (Allegheny County)
Signature blocks for all parties with dates
Provision for enforcement if a party breaches the settlement
When to Walk Away
Not every dispute should be settled. Consider the cost and time of litigation versus the offer on the table. If the other side is negotiating in bad faith, or if the settlement offer doesn’t adequately compensate your losses, it may be better to pursue your claim in court.
Always know your BATNA (Best Alternative to a Negotiated Agreement) before entering negotiations. This is your walkaway point — the best outcome you can achieve if negotiations fail.