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A pre-negotiation strategy includes the use of an offer by a plaintiff. While the first offer must be high enough to indicate good faith, it should also leave room for further bargaining and settlement. If the plaintiff's offer is too low, the opponent will be unlikely to accept it. Moreover, a pre-negotiation strategy also helps prevent the opposite side from gaining too much, as this could jeopardize the outcome of the case. Another useful strategy is limiting the agency of the negotiator. This strategy helps to get agreement on sub-issues first and then move on to more difficult issues. However, one disadvantage of this strategy is that the other side may refuse to negotiate with a narrow agent and try to settle the case. The risk of a pre-negotiation is high. The odds of a successful settlement are extremely low, so it's crucial to be prepared for the possibility of it. It is important to remember that settlement negotiations are rarely a straightforward discussion of one issue. Many parties will need to compromise on multiple issues with a range of possible solutions. Therefore, settlement negotiations are broken up into smaller mini-negotiations over each dispute. It is important for both parties to understand this concept and agree on a shared agenda. This will help them stay centered in the negotiations and reach an agreement.
In addition, lawyers should be gracious hosts when negotiating in their law offices. This will help to counterbalance any dislike of opposing clients. Being a gracious host is another way to encourage a settlement offer. Be prepared to grant discovery extensions and extend the date of the settlement conference. In the litigation context, this is especially important to demonstrate goodwill toward the opposition. It's a proven principle that generosity breeds generosity. Ethics concerns are a constant issue in negotiations. Lawyers may choose to engage in all-out partisan advocacy or remain neutral, depending on whether it benefits their client. However, lawyers must remember that they are acting in the client's best interests. Moreover, it is not acceptable to disclose confidential information without the client's permission. A lawyer should never reveal confidential information to a third party without his client's permission.