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Position a settlement
Prices your BATNA as an actual number, sets the opening and the floor against your client's authority, and sequences the concessions on triggers instead of the clock.
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2
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3
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*(After you answer the four questions: client can fund trial but the CEO is deposed in a parallel matter in November, the EPLI carrier is participating under a reservation on punitives, and a Rule 68 offer of $250K was served in March.)*
BATNA (defense). Trial in 9 months. Cost from here: $650K. Probability-weighted exposure: $712K. Add the Rule 68 backstop: if plaintiff recovers less than $250K, post-offer costs shift to her, which caps the tail. Net: settling anywhere under roughly $1.36M beats trying it, before counting the CEO's time and the deposition transcript that would become public. Arithmetic: $712K exposure + $650K defense cost = $1.362M.
Value range
| Scenario | Number | Probability | Basis |
|---|---|---|---|
| Plaintiff verdict with fees | $1.9M | 15% | [anchored]: division comparables you supplied |
| Compensatory only | $890K | 45% | [anchored]: back pay $310K plus front pay and emotional distress at observed multiples |
| Defense verdict | $0 | 40% | [estimated]: causation is genuinely contested after the MSJ denial |
Weighted: $685K, plus $27K prejudgment interest exposure = $712K.
Opening: $185K. The paragraph for the mediator: "The court denied summary judgment on causation, not on pretext, and the record shows three documented performance conversations before the complaint was made. The company is prepared to resolve this now to avoid the cost of trial, but it is not prepared to pay a number that treats a denied motion as a finding of liability."
Floor: $600K, which is exactly my written authority. The analysis says the real walk-away is closer to $700K once fees and the CEO's November availability are priced. Say this to the client now, not at 6 p.m. on mediation day. To move authority to $850K, the GC will want the causation section of the MSJ order and the comparables table.
Move sequence
1. Open $185K with the pretext framing. No movement until plaintiff comes off the $2.4M demand.
2. To $310K only if plaintiff moves below $1.5M. Frame as the back-pay number, which makes the step principled rather than reactive.
3. To $475K if plaintiff reaches $900K and the mediator signals real authority in the room.
4. To $600K as a bracketed final, conditioned on a full release, confidentiality, and a resignation letter. Steps shrink to $50K increments below this.
Non-monetary terms priced: full release including the pending EEOC charge, $75K. Confidentiality with liquidated damages, $40K: trade this second, plaintiff's counsel will fight it. Neutral reference, $0 to us and worth real money to her: trade it first. No-rehire, $0. Do not trade the release scope.
Try the case at: anything above $850K, and that is an authority line, not an economic one. The arithmetic above says any number under $1.362M beats trying it; $850K is simply the ceiling the GC can reach with board sign-off, so above it the recommendation is not that trial is the better bet, it is that we are out of authority and the client has to decide whether to buy more. What would move it: an adverse in limine ruling on the comparator evidence (moves it up $150K), or the CEO becoming unavailable for trial (moves it up, badly).
[CHECK] Whether the March Rule 68 offer was properly served and remains operative after the amended complaint. If it lapsed, the cost-shifting backstop above disappears and the floor moves.
What your answers changed. That the client can actually fund a verdict is what makes the $185K opening and the $850K try-the-case line real numbers rather than posture. Tell me they cannot fund trial and the BATNA collapses, the opening moves to something plaintiff will engage with on day one, and the floor becomes whatever the GC can be talked into. The March Rule 68 offer is the second mover: it is the only thing capping the downside tail on the $1.362M BATNA, and it is why the single [CHECK] at the bottom is about service and operativeness rather than about the mediator. Your answer about the EPLI carrier's reservation on punitives changed nothing in these numbers. The $1.9M scenario already carries the punitive exposure at 15%, and a reservation decides who writes that check, not how large it is. It will decide who holds authority in the room on mediation day; it did not move the BATNA, the opening, or the floor.
Why this prompt is built the way it is
## Framework
1. **BATNA first, as a number.** What happens if this does not settle: expected outcome at trial, minus fees and costs to get there, adjusted for time to judgment and collectability. Show the arithmetic.
2. **Three scenarios, explicit probabilities.** Best, mid, and worst, summing to 100. Label each probability as anchored in something you were given or estimated.
3. **Opening number with a carryable justification.** The mediator has to be able to repeat it in the other room without you.
4. **Floor tested against authority.** If the analysis says the floor should be higher than the authority, say so. That is a client conversation, not a rounding error.
5. **Moves on triggers, not the clock.** Every concession names the reciprocal move that unlocks it. Steps shrink as you approach the floor.
6. **Price the non-monetary terms.** Release scope, confidentiality, tax characterization, structure, no-rehire, references. In dollars.
7. **The try-the-case number.** The number below which you recommend a verdict, and the two facts that would move it.
8. **Forum arithmetic.** Fee-shifting, offer-of-judgment rules, prejudgment interest, caps, and liens change every figure above.