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By Tim Dierkes | at
Email a copy of 'John Lannan Had Arbitration Hearing Today' to a friend
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Jeff Westcott
They’re $700K apart and they can’t do a deal? One side must really dislike the other.
Eugene_in_Oregon
Mr. Westcott: Actually, the closer they are the LESS likely they are to feel compelled to do a deal. The system encourages both parties to be reasonable by forcing the panel to choose one offer or the other. In this case, a split-the-difference agreement would have generated only a $350k savings or addition. Both sides were willing to risk a smaller number (relatively speaking, of course) for the $700k difference. If the parties are several million dollars apart, the risk is much greater and both parties have a greater incentive to compromise.