Tensions between parties in dispute are often high. Likewise, taking a dispute to court is risky and expensive and can be incredibly stressful and time-consuming. In some cases, you may be better off trying to resolve the dispute in a settlement conference. Negotiating a settlement keeps you in control of the terms, as you are not asking a judge to decide for you. You can also save a lot of money on legal costs. This article outlines eight tips for getting the best outcome in a settlement conference.
1. Know the Other Party
Take a moment to put yourself in the other party’s shoes. Think about what they are trying to achieve and why. This does not mean you have to agree with them (or that they are right), but it can help negotiate a resolution. For example, if you know they want something you do not consider important, you can exchange this with them for an item of higher value. Understanding the other party’s goals and position will help you negotiate and come closer to a happy medium.
2. Avoid Letting Emotions Take Control
Attack the problem, not the other party. Put aside your feelings for them as people and focus on the facts of the matter. Being aggressive and personal is likely to hinder your chances of resolving the dispute. While sometimes difficult, staying calm and leaving emotions at the door is crucial for an effective settlement.
Continue reading this article below the form3. Consider the Timing
Timing can be important. Holding a settlement conference shortly after court proceedings have started can save considerable costs if you reach a resolution. Alternatively, holding a settlement conference later in the process brings the benefit of knowing more information about the strengths and weaknesses of the other party’s case. This may help you find leverage points to negotiate a better outcome.
Seeking advice from an experienced disputes lawyer is the best way to get the timing right and make the most of any strategic advantage.
4. Have a Clear Objective
Take some time to consider what you want to achieve. What are the terms upon which you would be prepared to settle? A settlement conference is a negotiation, and you will likely need to compromise. Therefore, it is useful to consider what you may or may not be willing to compromise on in advance.
5. Be Prepared
Discuss with your lawyer what is likely to happen at the settlement conference and understand any formalities or how discussions are likely to unfold. It is also important that you understand both your best and worst-case scenarios.
Settlement conferences do not always reach agreements. In this case, you should understand the risks you may face if the dispute cannot be resolved at this stage. This will help you weigh up the risk of potentially losing at a final hearing and compromising your position or any advantages you possess.
Ensure that you provide your lawyer with all the information and documents relevant to your case. Negotiations can fall apart if a lawyer makes a decision based on an incorrect assumption or misunderstanding.
6. Avoid Bidding Against Yourself
A settlement conference will often have several offers and counter-offers passing back and forth between sides. If your offer is rejected, do not be tempted to immediately make a weaker offer. Bidding against yourself can create a perception that you need to settle.
7. Allow Plenty of Time
A settlement conference can take considerable time. Some can take all day. Do not be tempted to rush the process, but allow the negotiation to take its course. Taking breaks through the conference can help prevent fatigue and keep your mind fresh.
Remember that if you can reach a decision in the course of the conference, you won’t need to continue pursuing the dispute. It is, therefore, very important that you let these conferences run their course.
8. Write Clear Terms of Settlement
Once you reach an agreement, you should record the terms in a carefully drafted Deed of Settlement and Release or Settlement Agreement. Your Deed or Agreement should precisely capture the terms reached to leave no room for further disagreement. Make sure you understand exactly what you agree to before executing any Deed or Agreement.
You should only agree to a settlement that you can uphold. There is little point in agreeing to make a payment by a certain date and then finding out you lack the required funds.
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Key Takeaways
A settlement conference can resolve a dispute faster and less expensively than a court hearing.
However, to arrive at a favourable outcome, you must go into the conference with a clear head and well-defined goals. There is no need to rush this process, and you should genuinely attempt to resolve the dispute as part of the settlement conference to save on your costs.
If you need help with a settlement conference, our experienced dispute resolution lawyers can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 1300 544 755 or visit our membership page.
Frequently Asked Questions
What is a settlement conference?
A settlement conference is a negotiation that involves both parties attempting to reach a ‘settlement’. This can include multiple offers and counter-offers being made.
You can enter into a settlement at any point during the dispute process. However, you should consider when you possess the best strategic advantage. This could be shortly after the commencement of court proceedings or later in the proceedings.
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