Mediation – Running Out of Authority Does Not Prevent Settlement

I recently mediated a case that was making steady progress—though the parties remained far apart, each move brought them closer. Three hours in, the defendant claimed it was running out of authority and suggested pausing until more could be secured. I pushed back, arguing that it made no sense to seek more authority without precisely knowing how much more authority was necessary to settle the case. Instead, I steered the discussion toward a mediator’s proposal, which I only make when I believe the proposal will and should be accepted by all parties.

With negotiations shifting from exchanging offers to shaping my proposal, we landed on the lowest amount that the plaintiff would take and the highest amount that the defendant could get approved. No surprise—the proposal was accepted, and the case settled.

Lesson learned: Running out of authority isn’t a roadblock. It’s an opportunity.