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Negotiating Case Value
Decision Trees in Mediation

                                                                      Oct 8, 2012

Dallas Bar Association ADR Section
                       Copyright © 2012 John DeGroote Services, LLC
If you and
                                                  the other
                                                 side value
                                                 your case
                                               differently, at
                                                least one of
                                               you is wrong.

                                                   Make sure
                                                  it isn’t you.


Copyright © 2012 John DeGroote Services, LLC                      2
What Is a Decision Tree?



                                                                “
                                                                An illustration that
                                                                shows the various
                                                                possible outcomes
                                                                  in a lawsuit and
                                                                 helps the parties
                                                                evaluate the costs,
                                                                risks and benefits
                                                                 of each outcome.
                                                                                       “
                                                                      - Daniel Klein



                 Copyright © 2012 John DeGroote Services, LLC                              3
Why Do a Decision Tree?


• Another Perspective
   on Your Case
 •   Events
 •   Contingencies
 •   Probabilities
 •   Timelines
 •   Costs

• What Does “Unlikely”
   Mean?


                     Copyright © 2012 John DeGroote Services, LLC   4
Who Can Decision Trees Help?

                                                               • Four
                                                                  Audiences
                                                                •   Counsel
                                                                •   Clients
                                                                •   The Mediator
                                                                •   Folks Back Home


                                                               • Can You Share
                                                                  Them with
                                                                  the Other
                                                                  Side?
                Copyright © 2012 John DeGroote Services, LLC                          5
How Do You Create a Decision Tree?
    1              2                                                  3                              4

   List        Consider                           Discount Each
                                                                                                Do the
Litigation     Costs or                           by Probability
                                                                                                 Math
 Events      Gains of Each                         It Will Occur




                                                                          Image from ResolutionTree.com
                       Copyright © 2012 John DeGroote Services, LLC                                       6
Another Example




                  Copyright © 2012 John DeGroote Services, LLC   7
…and Just One More




                                                              Image © Litigation Risk Analysis, Inc.
               Copyright © 2012 John DeGroote Services, LLC                                            8
Responding to the Naysayers

• They Objectify Litigation
• Not Everyone Is Rational
• The Parties Won’t
   Agree on a Number
• The Results Are
   Unreliable
• They Are Only for
   Commercial Cases
• Nobody Else Does Them

                       Copyright © 2012 John DeGroote Services, LLC   9
John DeGroote
President, John DeGroote Services, LLC

John DeGroote is a court-appointed trustee, settlement counsel and former
global company general counsel who believes that hands-on leadership, early
matter assessment, and aggressive project management drive results.

    Serves as the Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust through
    John DeGroote Services, LLC.

    Served as BearingPoint, Inc.’s Executive Vice President and Chief Legal Officer from 2008 through
    August of 2009, and as the Company’s Chief Litigation Counsel from 2000 through 2008.

    Previously practiced with the law firms of McKool Smith, P.C. and Jackson Walker, L.L.P., with a
    focus on complex technology, commercial, and intellectual property litigation matters for and
    against various Fortune 500 companies.

    Currently serves as settlement counsel to select clients involved in significant disputes.

    Received his mediation training from Pepperdine University's Straus Institute for Dispute
    Resolution in 2005. Has participated in over 200 mediations as a client or as an advocate in
    approximately 20 states.

    Serves as a co-founder to online decision tree tool ResolutionTree.com and comments on litigation
    management, settlement techniques and negotiation strategies at settlementperspectives.com.

• J.D., Duke University School of Law              • B.A., Mississippi State University


                          Copyright © 2012 John DeGroote Services, LLC                                  10
Contact


          John DeGroote
          President, John DeGroote Services, LLC

                   web johndegroote.com

                  email jd@johndegroote.com

                  office (214) 887-3484

                    cell (214) 288-6864

                address Hickory Street Annex
                        501 S 2nd Avenue, Suite A-700
                        Dallas, Texas 75226




                          Copyright © 2012 John DeGroote Services, LLC   11
Copyright © 2012 John DeGroote Services, LLC   12

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Negotiating Case Value with Decision Trees

  • 1. Negotiating Case Value Decision Trees in Mediation Oct 8, 2012 Dallas Bar Association ADR Section Copyright © 2012 John DeGroote Services, LLC
  • 2. If you and the other side value your case differently, at least one of you is wrong. Make sure it isn’t you. Copyright © 2012 John DeGroote Services, LLC 2
  • 3. What Is a Decision Tree? “ An illustration that shows the various possible outcomes in a lawsuit and helps the parties evaluate the costs, risks and benefits of each outcome. “ - Daniel Klein Copyright © 2012 John DeGroote Services, LLC 3
  • 4. Why Do a Decision Tree? • Another Perspective on Your Case • Events • Contingencies • Probabilities • Timelines • Costs • What Does “Unlikely” Mean? Copyright © 2012 John DeGroote Services, LLC 4
  • 5. Who Can Decision Trees Help? • Four Audiences • Counsel • Clients • The Mediator • Folks Back Home • Can You Share Them with the Other Side? Copyright © 2012 John DeGroote Services, LLC 5
  • 6. How Do You Create a Decision Tree? 1 2 3 4 List Consider Discount Each Do the Litigation Costs or by Probability Math Events Gains of Each It Will Occur Image from ResolutionTree.com Copyright © 2012 John DeGroote Services, LLC 6
  • 7. Another Example Copyright © 2012 John DeGroote Services, LLC 7
  • 8. …and Just One More Image © Litigation Risk Analysis, Inc. Copyright © 2012 John DeGroote Services, LLC 8
  • 9. Responding to the Naysayers • They Objectify Litigation • Not Everyone Is Rational • The Parties Won’t Agree on a Number • The Results Are Unreliable • They Are Only for Commercial Cases • Nobody Else Does Them Copyright © 2012 John DeGroote Services, LLC 9
  • 10. John DeGroote President, John DeGroote Services, LLC John DeGroote is a court-appointed trustee, settlement counsel and former global company general counsel who believes that hands-on leadership, early matter assessment, and aggressive project management drive results. Serves as the Liquidating Trustee to the BearingPoint, Inc. Liquidating Trust through John DeGroote Services, LLC. Served as BearingPoint, Inc.’s Executive Vice President and Chief Legal Officer from 2008 through August of 2009, and as the Company’s Chief Litigation Counsel from 2000 through 2008. Previously practiced with the law firms of McKool Smith, P.C. and Jackson Walker, L.L.P., with a focus on complex technology, commercial, and intellectual property litigation matters for and against various Fortune 500 companies. Currently serves as settlement counsel to select clients involved in significant disputes. Received his mediation training from Pepperdine University's Straus Institute for Dispute Resolution in 2005. Has participated in over 200 mediations as a client or as an advocate in approximately 20 states. Serves as a co-founder to online decision tree tool ResolutionTree.com and comments on litigation management, settlement techniques and negotiation strategies at settlementperspectives.com. • J.D., Duke University School of Law • B.A., Mississippi State University Copyright © 2012 John DeGroote Services, LLC 10
  • 11. Contact John DeGroote President, John DeGroote Services, LLC web johndegroote.com email jd@johndegroote.com office (214) 887-3484 cell (214) 288-6864 address Hickory Street Annex 501 S 2nd Avenue, Suite A-700 Dallas, Texas 75226 Copyright © 2012 John DeGroote Services, LLC 11
  • 12. Copyright © 2012 John DeGroote Services, LLC 12