Mind and Heart of the Negotiator, Second Edition, The

Appendix 3. Third-Party Intervention

Sometimes, despite the best of intentions, the negotiation process breaks down, and parties reach an impasse. In such instances, parties either threaten legal action or perhaps seek third-party intervention. Sometimes, on the way to court, parties try third-party intervention. Third-party intervention can be an excellent means of reaching settlement when BATNAs are terrible and the costs of disagreement are high.

In some instances, parties find it wise to make mediation-arbitration contingencies if they are unable to reach agreement, thereby promising in advance to avoid legal action. For example, as the first wave of Y2K-inspired lawsuits began to emerge, a group of the largest companies vowed not to let ...