Is the first offer made by defendant usually an invitation to negotiate?

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Hypothetically speaking, if a long running case is going to court and the defendants finally decide that they want to settle out of court, is the first offer they make usually serious or is it (like in business) just a bid to start negotiations?

dazza21ie

Roman Brief Scarecrow wrote: »

Hypothetically speaking, if a long running case is going to court and the defendants finally decide that they want to settle out of court, is the first offer they make usually serious or is it (like in business) just a bid to start negotiations?

Really depends on the case and the type of offer made.

If it is a monetary offer for x amount then the person offering it usually has factored in for some negotiation on the figure.

Victor

It is an opening offer. Be very careful in rejecting it - there is a process of lodging an offer with the court and if the award is less than that, the plaintiff may be stuck with the court costs.

The plaintiff should take advice from their solicitor and other advisors, but the decision is ultimately the plaintiffs. Let the solicitor deal with how to accept / reject offers - there are ways to phrase things such that they are queries, as opposed to rejections, e.g. "The offer for X topic is acceptable, but we would prefer a much higher figure for Y ...".

Be wary with insurance companies especially, who are known for making very low first offers.

In making offers and counter-offers be aware that you should leave the other side some room to manoeuvre - there are few things worse that fixed first offers. Ultimately, what each side wants is to pay the least / receive the most cash. Some people will be sensitive what that amount of cash is for, while others won't, e.g. €30,000 for loss of earnings and €30,000 for pain and suffering may be much more palatable that €40,000 for loss of earnings and €20,000 for pain and suffering.

NUTLEY BOY

Yes.