When we think of lawsuits, we think of attorneys, courts, judges and. But how often do we think of settlements? In the eyes of many, the settlement is underrated. Personally, I am a huge proponent of settlement, even before going to court. Court is expensive for both parties and litigation can lead to sour feelings between parties to an already sour situation. Additionally, it is common that even after winning a lawsuit, the winning party is so marred by the litigation process that winning no longer feels satisfying.
So what is the best way to settle? Start with a demand letter to begin the negotiation process. Demand letters contain little risk in that they cost relatively little for a potentially large payout. Here are some tips that I am sharing from my experience over my years of practice:
Although demand letters are usually unwelcome, they are a powerful yet cost-effective tool to attempt settlement and to get an idea of the opposing party's position. By starting with a demand letter, you open the door to more options, specifically settlement, and potentially save yourself thousands of dollars and years of stress.
So what is the best way to settle? Start with a demand letter to begin the negotiation process. Demand letters contain little risk in that they cost relatively little for a potentially large payout. Here are some tips that I am sharing from my experience over my years of practice:
- Analyze and research your position, goals, strengths, and weaknesses.
- Analyze the other party's position, goals, strengths, and weaknesses.
- Make your demand clearly and firmly but kindly.
- Do not immediately respond to a demand response.
Although demand letters are usually unwelcome, they are a powerful yet cost-effective tool to attempt settlement and to get an idea of the opposing party's position. By starting with a demand letter, you open the door to more options, specifically settlement, and potentially save yourself thousands of dollars and years of stress.