Negotiation And Dispute Resolution

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NEGOTIATION AND DISPUTE RESOLUTION
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[2020]

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PART ONE: SCENARIO BASED PROBLEM
a) Parties and their BATNAS & WATNAS
The two twin sisters; Peta and Erin Dougherty, are disputing against Prestige Ltd for
substandard construction work with reparations amounting to $75,000 on the entire
building. Jamie, the Managing Director, seemed reluctant at first, but eventually agreed to
enter into a negotiation agreement process. For each of the two parties, they both have the
best and worst course of action should they fail to reach a negotiation agreement within a
reasonable time frame.
Prestige’s BATNA
The best alternative to negotiation agreement for Prestige would be to agree to incur the
reparation works on Peta and Erin's apartment building at the cost of $75,000. This will,
in turn, paint a better picture of the company on the new prospective buyer. With the
buyer satisfied, they will agree to make their purchase and Prestige Ltd would be wound
up.
Prestige’s WATNA
The worst alternative to negotiation agreement for Prestige would be refuse to continue to
pass time under the voluntary administration while waiting for the administrator to seal
the sale deal with the new prospect. Since voluntary administration should last up to eight
weeks, likely, the new buyer will possibly take longer as they are doing due diligence to
determine the extent of reparation works. With the two sisters' case looming, the
prospective buyer might have a change of mind. If this happens, then Prestige Ltd might
have to face legal action should Peta and Erin decide to sue it over breach of contract and

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the resulting hospitalization of the former following their occupation of the newly
completed apartment.
Peta and Erin’s BATNA
The best alternative to negotiation agreement with Prestige would be to discourage the
prospective buyer of the company by making their reparation claims known to the public.
Assuming that the voluntary administration timeframe elapses, the two sisters can take
legal action against Prestige. Maria, having been affected indirectly by a bad construction
company, would in a way lean towards the sisters’ side.
Peta and Erin’s WATNA
The worst alternative to negotiation agreement with Prestige would be the company being
sold off to the new buyer while under voluntary administration. The sisters would lose
their reparation claim.

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b) Strategy(ies) adopted by Jamie and Maria, any relevant legal issues
Jamie portrays an aggressive reaction, mainly directed towards winning the mediation
without giving the other party a chance to explain their situation. He employs the takers'
strategy in trying to have his way on the negotiation agreement.
Maria has a past of having dealt with bad construction companies, especially that her
mother lost $30,000 in the past. Despite being an indirect victim to such encounters, she
employs strategies to control herself and put the situation under control. Maria adopts the
evaluative strategy of conflict management. This is evident in the fact that a solution was
reached but one of the parties, Jamie was not satisfied with it. It appears that the
resolution was forced rather than be left for the parties to agree on a settlement
themselves.
The relevant legal issues arising from this negotiation process are confidentiality and
admissibility. Regarding confidentiality, both parties are restricted from sharing any
information about the negotiations with the public. In this case, Peta and Erin disclosing
information about the proceedings to the public would be to their advantage as it would
mean Prestige Ltd would lose its credibility and send off potential buyers of the firm. On
admissibility, any evidence gathered to run the negotiation process is not allowed to be
used in court should the parties fail to reach a negotiated agreement and the case goes to
litigation.
c) Issues raised and relevant legal issues
One of the matters raised from the negotiation proceedings is that Maria seemed biased as
she openly showed that Jamie was in the wrong while Peta and Erin deserved to be