Find Mediators Near You:

Settling Is Bad For Business

News this week that a well respected San Francisco litigation shop is in trouble and may close.

The main reason being offered is that Heller Ehrman has settled too many of its cases and gave away 60% of the firm’s revenue… highlighting once again the tightrope attorneys walk when weighing up the various tensions (client and firm) involved in deciding whether to negotiate or mediate.

‘So what has happened to Heller, which has long ranked as one of the top firms in San Francisco and one of the top litigation shops in the country? For starters, the firm had many huge litigation matters settle in rapid succession last year, including its representation of Ernst & Young in securities fraud suits against AOL and Cendant. About one-fourth of its litigation business settled last year–a huge blow given that litigation makes up about 60% of the firm’s revenue, according to a Heller attorney. And that revenue has been hard to make up in a soft litigation market’ [read more]

So, should a law firm’s interests be part of the decision to mediate?

Those interests might be around future fees, especially if there is a contingency deal where the firm effectively has an equity stake in the asset (aka claim) they now share with the client.

Those interests might also be around getting partners into the courtroom on a strong case and being seen to win it, any number of competing interests…

                        author

Geoff Sharp

Geoff Sharp is a Commercial Mediator from Wellington, New Zealand. Geoff works in the Asia Pacific region, including New Zealand, Malaysia, Thailand and Pacific Islands. He is a mediator resolving business problems. He is a fellow of the International Academy of Mediators and mediates complex and hotly debated litigation covering… MORE >

Featured Members

ad
View all

Read these next

Category

Missing in action: where are all the women who mediate?

An advertisement for one of the big ADR firms appears regularly in the weekly newspaper for lawyers distributed here in Massachusetts. The ad, in sober gray, black, and white, covers...

By Diane J. Levin
Category

Court ADR Trends for 2015

About RSI Blog As we enter a new year, we’ve decided to round up some of the most interesting trends we’ve observed in court ADR.   Court mediation used to...

By Mary Novak
Category

Mediation With A Mugger

Thanks to Geoff Sharp for this item picked up from this post over at the Legal Profession Blog: The Goetz example [of poor Bernhard having to mediate with his mugger] was...

By Victoria Pynchon
×