An oft-touted truism about both negotiation and mediation is that trust is critical to reaching an agreement. But is it?
Parties typically come to mediation or engage in negotiation with a trust deficit. Perhaps parties feel wronged, betrayed, or angry. Perhaps there is no prior history between the parties, or they have a particularly challenging history. Notwithstanding this trust deficit, reaching an agreement remains possible.
Parties often select a mediator based on recommendations, counsel’s experience with the mediator, or available data (i.e., subject matter expertise, neutral experience, or stated philosophies). But even if counsel knows the mediator, the actual parties do not. Notwithstanding this lack of pre-existing trust in the mediator, settlement remains possible.
So, is trust critical to reaching a negotiated or mediated agreement? To explore the answer to this question, read the attached article, which is reprinted from the Spring 2022 Newsletter of the Bankruptcy Law Section of the State Bar of Texas.
SBOT Bankruptcy Newsletter - Trust in Negotiation and Mediation - Final