Tag Archives: transactional law practice

Learn To Negotiate Like A Transactional Lawyer

negotiationI recently had lunch with  Mark Fingerman, a Los Angeles lawyer who has successfully transitioned from being a litigator to a full-time mediator. As I often do, when I get an opportunity to talk shop with mediators, I asked Mark some of his tips for successful negotiation. To my surprise, although Mark had been a litigator his entire career, his advice was to go a different direction entirely. “Litigators can increase the likelihood of success at mediation,” he said, “by acting more like transactional lawyers.”

This notion immediately made a lot of sense. After all, while it’s the mission of a transactional lawyer to get the best possible deal and terms for his client, their negotiations should very rarely result, as it so frequently does in the litigation context, in a stalemate. While a party to a lawsuit will sometimes view proceeding to trial as the best alternative to a negotiated agreement (aka “BATNA”), the job of transactional lawyer is generally to reach agreement and get the deal done.

While Mark’s advice made a lot of sense to me in the abstract, I started thinking what does this mean? What does it mean to negotiate less like a litigator and more like a transactional lawyer?

I followed up with Mark after our lunch, and suggested this might be fertile ground for a blog post. He was pleased for the opportunity to explain his statement in more detail, and also suggested that this very topic is one that he covers extensively in a CLE program he offers to law firms and bar associations called Mediation: Prepare to Succeed.† Here’s what Mark said:

“This involves, among other things: preparing for the mediation as a negotiation, including identifying the interests of the parties, settlement ballpark and necessary deal points; focusing at the mediation on reality and problem solving instead of advocacy and pressure; using the mediator to gain and communicate information useful to making a deal rather than trying to turn the mediator into a super advocate.” 

A major difference I see in Mark’s approach from the approach we typically take is his shunning of our common tendency to try to leverage the mediator to apply pressure on our opponent that we cannot otherwise apply. This is indeed a departure.

After all, we often draft extensive mediation briefs, with cites to specific exhibits, that are little different from the brief we might submit if the neutral were sitting as an arbitrator who would issue an award, and not a mediator engaged to facilitate settlement. In an earlier era, it was common to do a mini-presentation of the arguments and evidence we expect to present at trial. In sum, we attempt to persuade the mediator of the merits of our case, with the hope she will step into the next room, caucus with our opponent, and, acting as our “super advocate,” pound them into submission.

So, if there’s no pounding, what should go on? Just as Mark points out, the mediation becomes less about applying pressure and more about “focusing . . . on reality and problem solving.”

This is all good. But I still found myself wondering more about how transactional lawyers approach negotiations. So I consulted a book about lawyering from the perspective of a career transactional lawyer. In Lawyering: A Realistic Approach to Legal Practice, M&A specialist James C. Freund says this in his introduction to the discussion of negotiating a deal:

“Most of what takes place in the course of negotiations can be characterized as either attempting to get a leg up on your adversary or striking a compromise between your respective positions. I firmly believe that the key to effective negotiating lies in achieving a functional balance between these two seemingly inconsistent aspects. If all your efforts are directed toward gaining advantages over your adversary, you will undoubtedly come on too strong; and where the parties possess relatively equal bargaining power, with freedom to consummate the transaction or not, you may cause your client irreparable harm–such as losing the deal.” (Id. at 188 (emphasis added).)

Again, from a transactional lawyer’s perspective, the goal is not to pound the other side into submission or walk away with no deal. Instead, in the interest of getting the deal done, Freund counsels that we strive to achieve a balance between getting a leg up on our opponent and striking a compromise. Makes sense, doesn’t it?

†Mark Fingerman encourages anyone interested in this presentation to reach him by email at: mfingerman@adrservices.org.


Law Students: Let’s Make A Deal!

PlanningI was really pleased to come across this article in the ABA Journal about Drexel University Professor Karl Okamoto, who has created a moot court-type experience dedicated to helping students hone skills needed to practice transactional law. I know the focus of this blog is generally on litigation and trial skills, but I applaud Professor Okamoto for coming up with something new and inspiring to fill the huge void for students who don’t want to litigate, or maybe just want to get a taste for what deal lawyers do. I hope similar programs become more widely available.

I probably speak for a lot of litigators who feel that they did not so much choose to go the litigation route as settle for what was available. Certainly, when I dreamt of becoming a lawyer I pictured myself in a courtroom. And I spend a fair amount of time there. But I spend an equal or greater amount of time either chained to a computer drafting motions and discovery responses or taking depositions. If I had learned something about doing deals early on, who knows . . .

Almost every transaction lawyer I know enjoys his or her practice more than the average litigator I know. The only exception to this comes from the fact that transactional law, M & A, real estate deals, private placement, public offerings and the like, seems to be a cyclical practice. At least in the past two decades, it’s been feast or famine for a lot of the deal lawyers I know, particularly at BigLaw firms. That’s not to say that litigation isn’t cyclical. In fact, I’m told we’re in a down cycle in many litigation practice areas right now.

The number of students who spend their second year summer in a BigLaw summer associate program has been shrinking. I know that neither BigLaw nor these programs are everybody’s cup of tea. On the other hand, up until now such programs have been the only opportunity most law students (and many lawyers) ever get to experience how transactional law is practiced.

Here’s how Professor Okamoto’s moot transaction program, LawMeets, works:

“[S]tudents get fact patters for a deal and play the roles of buyer, seller and client. Over a period of months, they have conferences; draft, exchange and mark up documents; and then negotiate the deal. Prominent transactional lawyers judge their documents and negotiations, as well as offer feedback. Then the students get to watch the pros haggle over the same terms. ‘That’s when we think the “ahas” begin,’ Okamoto says.”

One added benefit I can immediately see to this program is how it forces students to complete a project over several months, which is much more similar to an actual law practice, where it is necessary to sustain focus on a deal (or a case, or several cases) over a longer period of time, often punctuated by short periods of frenzied activity.

The other interesting approach is asking the judges to demonstrate how they would handle the same situation. This could influence the way trial advocacy and moot court competitions are taught, though it might make it more difficult to find judges who’ll volunteer, not only to judge the competition, but also demonstrate their skills.

Kudos to Professor Okamoto!


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