Negotiating in a Down Economy LACBA Solo & Small Firm and Legal Tech Convention Victoria Pynchon and the Hon. Alexander Williams, III (Ret.) ADR Services, Inc . All lawyer cartoons courtesy of the brilliant Charles Fincher of LawComix.com

5 years full-time neutral experience 25 years commercial litigation/trial experience LL.M Dispute Resolution, Straus Institute 20 years teaching experience Business Law, Cal State Northridge Negotiation & Mediation Strategy & Tactics: Straus Institute, UCLA Anderson School of Management, USC Law School, Fortune 500 In-house counsel, AmLaw 200 firms National Institute of Trial Advocacy

5 years full-time neutral experience

25 years commercial litigation/trial experience

LL.M Dispute Resolution, Straus Institute

20 years teaching experience

Business Law, Cal State Northridge

Negotiation & Mediation Strategy & Tactics: Straus Institute, UCLA Anderson School of Management, USC Law School, Fortune 500 In-house counsel, AmLaw 200 firms

National Institute of Trial Advocacy

Hon. Alexander Williams III Settled hundreds of major civil cases as Superior Court Judge (24 years) Full-time Settlement Judge for 3 years Adjunct Professor, Straus Institute for Dispute Resolution Co-Teacher, California Judicial College Civil Settlements Course Instructor, Los Angeles Superior Court Settlement Courses Hundreds of hours of formal ADR training (Pepperdine, Harvard, ABA, et al.) “ Peacemaker of the Year,” Southern California Mediation Association

Hon. Alexander Williams III

Settled hundreds of major civil cases as Superior Court Judge (24 years)

Full-time Settlement Judge for 3 years

Adjunct Professor, Straus Institute for Dispute Resolution

Co-Teacher, California Judicial College Civil Settlements Course

Instructor, Los Angeles Superior Court Settlement Courses

Hundreds of hours of formal ADR training (Pepperdine, Harvard, ABA, et al.)

“ Peacemaker of the Year,” Southern California Mediation Association

Why do people seek the services of attorneys?

Relative Benefits v. Absolute Numbers

Persuasion Exercise Object of the game Get your partner to come over to your side of the line The winners will each will $1.00

Object of the game

Get your partner to come over to your side of the line

The winners will each will $1.00

What do we most want to know

What do we most want to know

What do they WANT??????

Tit for Tat Most Successful Negotiation Strategy Cooperate Retaliate for failure to cooperate Quickly forgive Return to cooperation

Cooperate

Retaliate for failure to cooperate

Quickly forgive

Return to cooperation

Dealing with Difficult People

Behind every accusation is a cry for help

They’re not difficult They are uninformed

They’re not difficult

They are uninformed

They don’t understand the case law They haven’t considered trading items of low value to them but high value to you They don’t foresee the bright economic future you do They are too distracted by emotional considerations to make rational choices You haven’t given them a way to accept your view without losing face

They don’t understand the case law

They haven’t considered trading items of low value to them but high value to you

They don’t foresee the bright economic future you do

They are too distracted by emotional considerations to make rational choices

You haven’t given them a way to accept your view without losing face

They are not irrational They have hidden constraints

They are not irrational They have hidden constraints

They’re not evil; they have hidden interests. From Bazerman & Malhotra, Negotiation Genius

They’re not evil; they have hidden interests.

Gaining the Upper Hand

The Population of Syria 18,448,752

Nature of problem deal is capable of resolving Characterize deal in way favorable to your strengths Routine extension of old rather than new “deal” View sale of biz as stand-alone vs. synergy created by acquisition by buyer Focuses on future rather than present Focuses on value to BOTH parties

Nature of problem deal is capable of resolving

Characterize deal in way favorable to your strengths

Routine extension of old rather than new “deal”

View sale of biz as stand-alone vs. synergy created by acquisition by buyer

Focuses on future rather than present

Focuses on value to BOTH parties

framing

Negotiating from a Position of Weakness

Don’t reveal own weakness Leverage their Weakness Identify and value your worth Establish metrics of value that satisfy party interests: attorney-client partner-associate plaintiff-defendant attorney-judge

Don’t reveal own weakness

Leverage their Weakness

Identify and value your worth

Establish metrics of value that satisfy party interests:

attorney-client

partner-associate

plaintiff-defendant

attorney-judge

Reframe Weakness as Strength 1912 Presidential campaign Used photo of Roosevelt without permission 3 million copies printed Penalty $1/copy

1912 Presidential campaign

Used photo of Roosevelt without permission

3 million copies printed

Penalty $1/copy

Telegram: planning to print 3 million copies of campaign speech. Excellent opportunity for photographers. How much are you willing to pay us to use your photograph? “ Appreciate opportunity but can afford to pay $250.”

Telegram: planning to print 3 million copies of campaign speech. Excellent opportunity for photographers.

How much are you willing to pay us to use your photograph?

“ Appreciate opportunity but can afford to pay $250.”

Be conscious Be curious Ask questions Reflect back answers Require cooperation Problem solve

Be conscious

Be curious

Ask questions

Reflect back answers

Require cooperation

Problem solve