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The Art of Negotiating a Settlement
By Jim Erisman
"Trial" September 1989

How do you arrive at your
initial settlement demand?
The first rule of thumb is to
make sure that the value
you have set is reasonable.

Lawyers who practice their craft in the personal injury arena, for the defendant as well as for the plantiff, strive to achieve as fair and just resolution of their clients' cases as possible. Most of the time, settlement, not trial, is the way to accomplish that result. Why? Because settlement is an economic necessity recognized by both plantiff and defendant. It eliminates the risk of losing in court.
    There is nothing quite so costly as an unsuccessful trial. Settlement enables the insurance carrier to control its costs. Plaintiffs are well served by the early resolution of case because they have early access to compensation. Money pays the bills, or it can be invested to provide additional income and measure of security.
    Settling the case may also help plaintiffs in another way. The stress of litigation forces them to dwell on their injuries. Relief from that burden can have a positive impact on their rehabilitation.

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