In this series on defining wins in litigation, we’ve talked about defining the goals and strategies at the outset, clear and open communication, and the benefits of resolving a dispute both financially and reputationally. The final piece in this series discusses why mitigating the plaintiff’s damage recovery can also be a “win”. I can speak from experience because I have effectively used this strategy for a client.
Suppose your customer accuses your company of taking certain actions that violated the terms of your contract. After digging into the contract and some other communications between the parties, it is clear you breached the contract. It also appears that your employees’ actions violate a statute that allows the customer to recover punitive damages. The customer claims $500,000 in compensatory damages, and wants another $3 million in punitive damages. What do you do from a litigation strategy standpoint?