JAMS neutral and retired California appellate justice Richard D. Aldrich outlines effective civil settlement strategies in his latest article, “Civil Settlement Techniques: Strategic Tools for Mediation Success”, published in Reuters Legal News.

Why Mediation Works: Voice, Speed, and Flexibility

Aldrich highlights that mediation offers litigants the chance to be heard and shape the outcome—something often missing in rigid litigation. He emphasizes the importance of pre-mediation statements and full settlement authority for success.

Distributive vs. Integrative Bargaining

The article distinguishes between:

• Distributive bargaining (zero-sum, positional negotiation)
• Integrative bargaining (interest-based, collaborative solutions)

Aldrich advocates for creative, customized settlements that meet deeper client interests, such as long-term security or relationship preservation.

Proven Mediation Techniques

Judge Aldrich shares key tools used by experienced mediators:

• Mini/Maxi Agreements: Cap risks with predefined settlement ranges.
• Split-the-Difference Offers: Best used at the end of a thorough negotiation.
• Patience and Tenacity: Persistence can turn wide gaps into successful resolutions.

Settlement Structure and Tax-Smart Solutions

He discusses the strategic value of structured settlements, especially in personal injury cases. Topics include:

• Present value vs. lump sum payouts
• Special needs trusts to preserve benefits
• Structuring attorney fees to reduce tax burdens

Good Faith Settlements & Multi-Party Leverage

Aldrich explains California’s Code of Civil Procedure § 877.6 and the Tech-Bilt factors, which can pressure non-settling defendants and streamline multi-party resolutions. These “good faith” tools are essential for early, strategic settlements.

Full article below: