An Unusual Case

After 15 years in this business and with hundreds of cases negotiated, I think I have a pretty good feel for telling when a negotiation has gone as far as it can.  Recently, though, I learned a new lesson.

One of the attorneys I deal with on a regular basis was representing a creditor that I have only encountered one other time.  In that previous case, this creditor was very unwilling to make concessions for a discounted settlement.  They also took a lot of time to respond to settlement offers which caused the negotiations to drag out for over two months (3 weeks is more typical).

This time around, the creditor was quicker to respond and after about 3 weeks they responded to one of my offers by indicating they were sticking with their last offer and would not come down further.  My experience has been that this is an indication negotiations are over regarding the dollar amount.  The only other area for negotiation involves how the settlement will be paid, i.e. lump-sum or a payment plan with a negotiated time frame.

When I presented this information to my client, they were not pleased with this outcome and asked me to see if the creditor would accept a slightly higher amount than our last offer but in a lump sum.  My instincts told me this exercise would be fruitless, but I decided to give it a try along with an indication that my client might just close the business down if the offer was not accepted.  Basically, the creditor could take the offer or risk getting nothing at all.

This last offer was substantially below what the creditor has said was their final offer but, to my surprise and pleasure, they accepted this lower amount.

The lesson here is that final does not always mean final.  Making just one more attempt may mean the difference between a successful settlement with an earned fee or a wasted effort with no reward.  Always push for a little better deal for your clients so you can be sure you did all you could.

Scott F. Soape