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Negotiation Case Study

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Negotiation Case Study

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  • November 9, 2012
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ASSIGNMENT – CASE STUDY

On a dreary, rainy night in October of 1968, a young woman was driving behind a lorry truck in the U.S. Perhaps impatient with the transport in front of her, the young woman by the name of Ms. Anderson steered her vehicle to peer around the lorry driver's side to see if the way was clear. Before she could react, she was struct head on from an oncoming vehicle from the opposite direction. Ms. Anderson sustained permanent and debilitating injuries as a result of this horrific crash. Just recently, she had retrieved her vehicle from Sorensen Chevrolet which she had been having some repairs completed. Unbeknownst to her, Ms. Anderson did not notice that her front driver's side headlight was malfunctioning. The oncoming driver who had struck her had not seen her on that dark misty night when the accident occurred. Mr. Miller, lawyer representing Ms. Anderson, held Sorensen Chevrolet as being liable for the accident and subsequently filed a $1,633,000 law suit against Sorensen. Sorenson had a faulty repair policy with an insurance company (which shall be called ABC Insurance). The policy had a ceiling of $500,000. Sorensen made it very clear that they would readily sue ABC if they settled for anything over the half million limit of the policy, urging them to settle out of court.

Miller, the plaintiff's lawyer countered that he would not accept an out of court settlement for anything less than the maximum half million allowed under Sorensen's insurance policy. ABC went to court and won a summary judgement where the decision rendered entailed that the plaintiff had no legal basis for a trial. ABC made a tentative offer of $25,000. Miller countered this with a demand for $400,000 and had in the interim, appealed the court's decision not to hear the case.

ABC upped their offer to settle at $500,000. In December of 1973, the appeal was heard. The Appellate Court reversed the decision and the summary judgement was overturned. The case could...