case study on settlement

Settlements Approaches in Urban Areas Working Group

• Working Group Documents
• Case Studies of Cities in Crisis
• Other Background Documents
• Introduction Settlements approach Guidance Note - 1st Workshop
• Operationalising the Settlements Approach session 2: Identifying and delineating target settlements, undertaking context analysis and needs assessment
• Operationalising the Settlements Approach session 3: Settlement response planning and Collaborative implementation and monitoring.

Urban Settlements Case Study Compendium, July 2018

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GOV-455 Topic 7 Case Study Settlement Negotiation Worksheet

Practice of law (gov-455), grand canyon university.

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Gov-455 topic 7 negotiation.

Case Study: Settlement Negotiation

Katie purchased a hair dryer manufactured by Ultimate Hair Dryer Company. While Katie was using the hair dryer, it malfunctioned and she was injured. Katie retained an attorney, Tom, to represent her in the products liability case. Defendants, Ultimate Hair Dryer Company, was represented by attorney, Laura. Katie believes she is entitled to $50,000 in damages and would like to settle for that amount. However, her attorney believes she is entitled to $40,000 in damages. Defense attorney Laura and Plaintiffs’ attorney Tom have been engaged in settlement negotiations. Based on attorney Laura’s evaluation of this case, she estimates that Katie would be awarded no more than $20,000 at trial. However, her client’s costs through trial will exceed $25,000, and these costs are not recoverable.

Katie’s last demand made to Ultimate Hair Dryer Company was $65,000. Ultimate is seeking to make another offer, and their last offer was $15,000. Trial is set to be commenced in six months.

You are the mediator (you can only assist the parties in attempting to resolve this matter – you have no binding authority):

• How would you persuade and posture the parties for each of them to make two more offers to resolve this action? Explain the points you would make to each party and your recommended offers each party should make.

There are several different ways that this can be handled, and it is important for both parties to understand the same evaluation of the damages cause by the malfunction of the hair dryer. The first point I would use is the fact that Ms. Katie was injured due to an issue present in how the hair dryer was either developed, created, and or assembled. Since the injuries obtained with Ultimate Hair Dryer Company, I would outline the total costs including medical bills, attorney and case fees, and provide reason to help provide a clearer understanding for both parties. Another aspect that I would make present is the fact that although Lawyer Laura’s client costs are not recoverable, they are still liable for the materials that they produce. With this being said, the last demand from Katie was $65, which is $15,000 more than the initial requested offer. This could be a point against Ultimate as if the case went to trial without a consensus or resolution through medication, additional attorney and court fees would apply. In an effort to avoid this, I would strongly remind what is at stake for Ultimate.

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• Discuss the amount of money you believe is just to settle the case. Why is the best possible amount for both parties?

I would suggest that Ultimate agrees to pay out $35,000 to Katie. The reason why this would support both parties is the fact that although Lawyer Laura assesses the case to cost Ultimate, Katie was injured with their product and in an effort to avoid additional fees should the case go to trail, this is a reasonable settlement. Furthermore, in reviewing all of the medical bills and additional bills associated with Katie’s injury, Ultimate needs to be able to understand both the physical, emotional, and financial impact Katie experienced due to the malfunction of their product (Gallage-Alwis, 2020). Lastly, this would provide a compromise as the last offer made was $65,000 which is saving $30,000 for Ultimate and covering the essentials for Katie along with providing additional compensation.

• What are the potential outcomes if the case went to trial? Why would settling be a better solution?

When looking at the potential outcomes if the case went to trail it is important to understand that it is best for the two parties to come up with a mutual resolution. In past cases it is prevalent that the compensation for Katie would significantly increase as in recent cases, the injured party received almost 125% more than initially offered. Potential outcomes of similar cases including monetary compensation to the plaintiff, removal of the product from production, and or jail time for those held responsible for the product (Klingelhöfer, 2019). During the trial process, the presiding judge and or jury looks at several factors, which include:

 the cost of medical bills for treating the illness or injuries caused by the product, including the expected cost of future treatment (Gallage-Alwis, 2020).  the income that you lost because of your illness or injuries, including an estimate of your future lost earnings if your ability to make a living has been affected.  your pain and suffering (Klingelhöfer, 2019).  any emotional distress (such as anxiety, sleep loss, and depression) that you experienced as a result of your illness or injuries.

In other terms, it is based upon the severity along with impact that the injuries obtained by the party had on their lives (Gallage-Alwis, 2020). This can also include both personal and professional as it is assessed that the loss of wages due to the injury may have caused additional suffering from the malfunction of the item.

References:

• Multiple Choice

Course : Practice of Law (GOV-455)

University : grand canyon university, this is a preview.

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