1. WHY I CREATED A SUBSTIUTUE TOOL FOR MEDIATION
How manytimeshave youhave youseena mediatorpropose asettlementthathasno relationtothe
meritsof the case? I’ve seenittoomany times. The facts feel almost irrelevantbecause the mediator
inevitablyproposesasettlementsomewhere close tothe middle. Ihave beenhandling construction
disputesbetween owners,general contractorsandsubcontractorsforover30 years. While mediation
has become astandard requirementincontractdispute resolutionclausesinthe constructionindustry
inmy experience itisawaste of time andmoney - but why?
I believeitismainly due tothe fact that attorneysare notincentivizedtosolve problemsquickly. Thisis
a major problemwiththe legal systemand itisnot goingaway.Since mediationisusuallynotbinding
there isalsothe fearthat anyrealisticoffer couldcompromiseafuture settlementif bindingarbitration
or a trial becomesnecessary atalaterdate. Infact, rather than encouragingtheirclientstomake
realisticoffers early inthe dispute mostattorneys, inmyexperience, advisetheirclientsto inflate the
damagesso thattheirclientscancome downfromtheirinitial position andstill gettheirdesired
outcome. Of course both partiesdothisso that theyendupcomingintomediationfartherapartthan
theywere originally. It’sall a recipe forfailure.
I rememberthe exactmomentIcame up withthe ideaforThe SettlementMachine. I wassittingina
depositionforasuitinwhicha formeremployeewassuingthe ownerof a companyforwhichI had
beenthe CFO. Duringthe breaksIapproachedeach partyand askedif eitherof themhadmade a
realisticofferthattheycouldlive with. Of course the answerwasno and theyboth informedme that
theirrespective attorneys hadadvisedthemthattheyneededtogetabetterunderstandingof the case
before considering anyoffers. Itwas clearto me that theirattorneys,whowere of course inattendance
and rackingup billablehours,hadnodesire foranytype of deal and were verycontenttospendtheir
respective client’smoney.
Duringthe course of the depositionIhadthe idea – what if theycouldmake a realisticofferthatwas
blindtothe otherparty? If this were possible it wouldeliminateanypossible objectionthatthe offers
couldcompromise future litigation. Andby nothavingto show theircards theycouldmake a realistic,
businessbasedofferearlyinthe dispute BEFOREspendingalotof moneyand time preparingforthe
mediation. SoIdecidedtocreate a simple,online tool whichcouldbe usedtomake bindingoffersthat
are blindtothe otherparty. Thiswas the birthof The SettlementMachine.
It can be foundatThesettlementmachine.com. All youhave todois go to the site,create anaccount,
create a newcase and enteranofferamount. If a settlementisnotreachedthere isnofee charged for
itsuse. If a settlementisreachedthe fee isasmall fractionof the settlement amount. There isnothing
to lose bygivingita try.
I’ve beeninvolvedinrunningconstructioncompaniesforover30 years. I’ve nevercreatedanonline
businessbeforebuthave completelyenjoyedthe process. Infact,thisis myfirstblog. I’ve learneda
tremendousamountinashort time butfeel like Ihave barelyscratchedthe surface. Iwouldappreciate
any feedbackabouthowto improve The SettlementMachine andIwouldalsolike tohearwhyyou

2. wouldor wouldn’tuse atool like this. Ilook forwardto hearingfromyouand I will domybestto make
future blogsinterestingand informative.
AdamNickerson
The SettlementMachine