Consideration for a Settlement Can Include More Than Just Money.

Most successful mediations result in parties agreeing that one will pay the other an agreed sum. When the parties cannot agree on the amount, however, they can supplement the monies available with nonmonetary consideration, for example, letting the defendant pay in installments, or agree to a covenant, such as a noncompete, or provide goods or services. Particularly helpful is asymmetric consideration, where the value to the recipient exceeds the cost to the donor. Even a public or private apology may add weight to the settlement package.  So when the money bargaining gets stuck, work with the mediator to find additional nonmonetary consideration sufficient to reach a settlement.


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Download Chapter By Francis L. Carter

Bankruptcy Mediation is a treatise published by the American Bankruptcy Institute