How Do Lawyers Negotiate Settlements?

Settlement negotiations are the cornerstone of the legal process, it provides lawyers a crucial way to resolve disputes without lengthy and costly trials. Depending on the nature of the case and the experience of the lawyers, it may have a drastic effect on how they negotiate for their client’s settlements. However, knowing how lawyers negotiate settlements can provide you with crucial information that can help speed up the process and get you the compensation you deserve for your losses. 

How Does Settlement Negotiation Work?

Settlement negotiations tend to start off with lawyers from both parties presenting their evidence to each other and negotiating a sum that is fair to both parties. This will involve lawyers utilizing negotiation tactics and bargaining strategies in order to gain the edge. However, the settlement sum will ultimately come down to the lawyer’s negotiation skills, their legal expertise,  how much evidence they have, and their client’s willingness to compromise. Once an acceptable settlement offer is presented to both sides, the clients will agree to the terms, sum, and conditions and finalize the paperwork and be finished with the suit.  

What Kind of Information Does A Lawyer Need to Start Negotiating?

Generally speaking, a lawyer needs everything related to the case in order to draft a formal settlement offer to opposing counsel. Information such as relevant facts, photos, videos, reports, and even bills is needed for your lawyer to understand your position from a legal perspective and how strong your case is. In addition, lawyers would need to gather legal precedents, relevant laws, regulations, and even what their client’s goals, expectations, and willingness to compromise is in order to draft an effective settlement offer that will leverage their strengths and hide any weaknesses. 

What Type of Settlement Offers are Available in Negotiations?

Generally, there are different types of settlement offers that can be negotiated, but depending on the nature of the dispute and the goals of the parties, they can be categorized by the terms and conditions. With that in mind, these are the most common types of settlements that are typically found in negotiations:

• Lump-Sum Settlements: A single payment made to the plaintiff to resolve the dispute.
• Structured Settlements: Periodic payments made over time, often used in personal injury cases to provide long-term financial security.
• Confidential Settlements: Agreements that include confidentiality clauses to prevent disclosure of the settlement terms.
• In-Kind Settlements: Non-monetary settlements involving services, property, or other assets instead of cash payments.
• Global Settlements: Comprehensive agreements that resolve multiple claims or lawsuits between the parties.

What Type of Damages Can a Victim Recover?

Generally, a victim can either recover economic, non-economic, or punitive damages for their claim, but depending on the nature of the incident, victims may recover either one or a mix of the three. However, it is important to note, that some of these damages are more accessible to recover, but it is recommended to consult with an experienced attorney to see what kind of damages are recoverable for your case.

• Economic Damages: Quantifiable monetary losses, such as medical expenses, lost wages, and property damage. These aim to compensate the victim for financial losses directly related to the incident and to cover any out-of-pocket costs that have occurred.
• Non-Economic Damages: Subjective damages that compensate victims for non-monetary losses, such as pain and suffering, emotional distress, and loss of companionship. These are often challenging to quantify and will vary on a person by person basis. They also typically require a substantial amount of evidence to justify the amounts claimed.
• Punitive Damages: Awarded in cases of egregious misconduct or gross negligence, these damages are designed to punish the wrongdoer and deter similar behavior in the future. They are not compensatory but serve as a deterrent against particularly harmful actions.

How Long Does It Take to Negotiate a Legal Settlement?

The time that it will take to negotiate a legal settlement will be entirely dependent on the complexity of the case. Any claim for an incident will take at the very least several weeks to months to settle and this range is to take account for discovery, gathering evidence, preparing to make any offers, and to send any counteroffers. As such, any negotiations with multiple parties will tend to take several months to probably a year to properly reach a settlement agreement. With that in mind, it is important to be mindful and patient as this is the process for lawyers to negotiate for a fair settlement for their respective clients.  

What’s the Most a Lawyer Can Take From Settlement?

The most amount of money a lawyer can take from a settlement is 40% of the total compensation, however, this rate is entirely dependent on the nature of the case and the lawyer’s rate for their legal services. Generally speaking, most attorneys tend to operate under a contingency based system where they only get paid by either winning their case or receiving a settlement offer from opposing counsel. 

Should either scenario occur then they can charge a rate for their services that ranges anywhere between 25%-40% of the total awarded compensation. However, most attorneys tend to average around a competitive rate of 33%, but it is important to discuss an attorney’s rate before you hire them/   

How Does a Lawyer Negotiate Settlements

In order for a lawyer to properly negotiate settlement for their clients, they must gather enough evidence and present a strong argument to opposing counsel that will convince them to make a settlement offer. For a lawyer to make a strong enough claim, they must properly assess the damages that their client has suffered in the incident and calculate the costs that are fair for both parties, and if a settlement cannot be reached then they will be forced to go to trial. 

While every case is different and is dependent on the facts and details, it is recommended to hire an attorney to negotiate on your behalf so you are able to recover as much compensation as possible for your injuries. If you believe that you were subjected to an accident due to someone’s negligence or recklessness and would like to seek legal representation, contact us today by calling (213) 927-3700 or filling our contact form to schedule a free consultation with our compassionate and talented legal team.