BREAKING DOWN
THE COMPS
NEGOTIATION WHAT IS A NEGOTIATION? Essentially, it’s a discussion between two teams of dispute resolution practitioners who are each negotiating on behalf of their client on opposite sides of a dispute. Negotiations are immensely important in legal practice as 95 per cent of all disputes are solved outside of litigation using alternative dispute resolution (ADR) processes (and negotiation is a popular form of ADR). In practice, being able to effectively negotiate a commercial dispute may save a client millions of dollars in legal fees, and years in time that would have otherwise been caught up in the courts. As opposed to litigation, negotiation is not a winner-takes-all exercise. The point of negotiation is that compromises often mean that both parties get at least some of what they want, and that they may be able to retain a valuable relationship that would have otherwise been destroyed. Negotiators need to ensure that they put their client’s interests first in any negotiated agreements they make. As such, mastering the art of negotiation is a skillset that many law firms and companies look out for and greatly appreciate. 12
WHY NEGOTIATION? Negotiation is an integral part of legal interactions between parties, and is a very common undertaking between clients, companies, employees and/or governments. Negotiation is required in almost all aspects of life, whether in the legal profession, a personal relationship or in purchasing a new car, it assists in reaching a mutually beneficial outcome for all parties.
PREPARING FOR A NEGOTIATION The negotiation is one of the least preparation-intensive competitions of the year and is a great way to build your experience straight off the mark. Prep work requires a thorough understanding of both the shared and secret facts, as well as your client’s needs, goals, and interests (note: these are not the same thing). Think BATNA and WATNA. What are the concessions your client is willing to make and absolutely cannot agree with? Start by reading over the problem, your secret facts and develop a game plan with your teammate.
