Alternative Dispute Resolution
Feb. 15, 2013
Sunk costs sink settlements
The "sunk-cost effect" can be so powerful as to overcome logic in mediation - much like it did with the Jets' decision to keep playing Mark Sanchez.
Robert S. Mann
Neutral, ADR Services, Inc.
Email: rmann@adrservices.com
Robert mediates and arbitrates business, real estate and construction disputes.
A few weeks ago the plaintiff's lawyer in a mediation told me that he and his client could not settle the case because the money that was on the table was substantially less than the attorney fees and costs that they had already expended on the case. This made very little sense to me, because the money on the table seemed to be a very accurate reflection of the defense risk and overall a "fair" number to resolve the case. I wondered why the plaintiff was blocked from settling by the focu...
For only $95 a month (the price of 2 article purchases)
Receive unlimited article access and full access to our archives,
Daily Appellate Report, award winning columns, and our
Verdicts and Settlements.
Or
$795 for an entire year!
Or access this article for $45
(Purchase provides 7-day access to this article. Printing, posting or downloading is not allowed.)
Already a subscriber?
Sign In