Making Offer in Mediation

Dear all,

Making Offer in Mediation

I am Natalia Cheung, a Hong Kong International Arbitration Centre (HKIAC) Accredited Mediator and a practising solicitor in Hong Kong.

I would like to share with you information on making offer in mediation.

 The offer made by one party to the opposite side during mediation would generally be viewed by the opposite side as falling into one of the following 3 categories:

(1) Insulting

(2) Credible

(3) Reasonable

 

(1)  Insulting offer: E.g. offer that has already been repeatedly rejected by the other side or any offer (if accepted) would mean a total loss to that party.

 

Making insulting offer to the opposite party would not generate any positive response and would probably ruin the mediation process. Party in mediation should avoid making such offer to the other side

 

Making an offer with too much of a concession would likely embolden the opposite side and create more difficulty in the negotiation process.

 

(2)  Credible offer:  This type of offer facilities the parties to anchor the negotiation and encourage mutual examination and adjustment of the expectations of both parties in attempting settlement by mediation. Parties should clearly indicate that the offer is negotiable or support their offer with explanation or justification in making offer that is at the borderline of a credible offer or an insulting offer.

 

(3)  Reasonable offer: It is an offer that would generally be acceptable to the parties in disputes and that settlement could be reached between the parties. Parties in mediation should therefore work together towards the making of such offer.

 

When the negotiation is in progress, the parties should enable the mediator to review and comment on the offers made by the respective parties, their negotiation pace and pattern, and the remaining gap between the parties. This in turn could help the parties to make an informed decision of whether smaller or large moves should be made in the negotiation process of mediation.       

 

For further information on mediation, please contact Ms. Natalia Cheung [(852)-6777 5767]

E-mail: natalia@plaw.hk

 

Natalia Cheung
HKIAC Accredited Mediator & Hong Kong Solicitor

Pang Kung & Co. Solicitors & Notaries & Civil Celebrants of Marriages

 

Disclaimer: The above is for your information and reference only. The contents do not constitute legal advice or a substitute for legal advice in individual cases.