Katie purchased a hair dryer manufactured by Ultimate Hair Dryer Company. While Katie was using the hair dryer, it malfunctioned, and she was injured.Katie retained an attorney, Tom, to represent her in the products liability case. Defendants, Ultimate Hair Dryer Company, was represented by attorney, Laura. Katie believes she is entitled to $50,000 in damages and would like to settle for that amount. However, her attorney believes she is entitled to $40,000 in damages. Defense attorney Laura and Plaintiffs' attorney Tom have been engaged in settlement negotiations. Based on attorney Laura's evaluation of this case, she estimates that Katie would be awarded no more than $20,000 at trial. However, her client's costs through trial will exceed $25,000, and these costs are not recoverable.

Katie's last demand made to Ultimate Hair Dryer Company was $65,000. Ultimate is seeking to make another offer, and their last offer was $15,000. Trial is set to be commenced in six months.

You are the mediator (you can only assist the parties in attempting to resolve this matter - you have no binding authority):

1.How would you persuade and posture the parties for each of them to make two more offers to resolve this action? Explain the points you would make to each party and your recommended offers each party should make.

2.Discuss the amount of money you believe is just to settle the case. Why is the best possible amount for both parties?

3.What are the potential outcomes if the case went to trial? Why would settling be a better solution?

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