Negotiating a reasonable workout with the lawyers suing my clients, a lot better then litigating.

My clients were served with a law suit demanding payment of approximately $650,000. They were clearly responsible for this amount and had no viable defense. We visited some high powered lawyers to ask for an analysis and a proposal. They proposed a two year pre-trial dance with discovery, motions etc, and then at the appropriate moment they would enter into a resolution discussion for a short payoff, but only after the stage was set. Two years of misery and with retainers and fees likely to reach over $100,000. before we got near a court room, heaven forbid.

After we met and my clients had a day or two to absorb this meeting and their proposal we met and I suggested the following course of action. That rather then waste all the cash we had available and have nothing left to offer in compromise, why not let me approach the opposing council and work out a conclusion using some of the money we would have paid our own lawyers.

They agreed and with financial statements and tax returns in hand I made an appointment with the lawyer representing the other side and met with him this afternoon in his office.

I explained my position very candidly, telling him my clients may have made some mistakes but in the end they thought they were doing the right thing under great pressure. The IRS was sweeping their accounts and threatening to shut them down, which they did. The bank was foreclosing and they were on the verge of total annihilation.

I offered them $25,000 telling him we would rather pay the plaintiff then pay the attorneys as it made sense and seemed like the right thing to do no matter how little the offer was.

After a brief discussion, the lawyer agreed and stated his intent to report this meeting to his client and recommend they accept our offer and cease all litigation.

It seemed appropriate to him as well, as what is the sense of wasting so much cash and time with no hope of a return in the end for his clients. He appreciated my candid response and logical suggestion despite the low offer, it was as good as we could do, presumably and thus the best possible solution.

We have a few hurdles to go, but this will work out along these lines and for once sane minds prevailed and a lawyer understood the best interest of his client was being served by his recommending they accept our offer and resist an expensive but fruitless victory in the courts.

This will be resolved along these lines.

So the lesson of this story is that anything can be worked out, if it makes sense and is properly presented, even a law suit. Call fr help 413-549-2966