Please visit my website www.Trill-EnviroLaw.com so that you can view and listen to my July 14, 2016 Power Point presentation to the Environmental Bankers Association. This PowerPoint presentation provides fundamental principles and guidance for participants in negotiations that involve the issues of environmental risk and liability. Although prepared for an audience that serves the lending industry, the advice provided can be applied in any commercial negotiating context.
As with the negotiation of any commercial subject, parties who negotiate agreements that involve environmental issues have bottom line financial goals that usually leave room for the parties to establish their respective ‘walk away’ positions. When those environmental negotiations also involve difficult to quantify or non-quantifiable issues, however, that monetary room for accommodation may not exist and the negotiator will need to be creative in finding alternatives to a monetary surplus. This presentation will guide the reader in helping to determine a “Rational Optimum Outcome” that will serve as a basis to set both “Anchor” and “Walk-Away” positions and it emphasizes the importance of recognizing that the duty of the negotiator is not to defeat the adversary but to win for his or her client.
Here’s a copy of the presentation’s conclusion:
- Know your business objectives and risk tolerance
- Establish your knowledge base: assess the potential liabilities
- Identify the Rational Optimum Outcome
- Define the Anchor position
- Walk away if you must
- Be creative in avoiding a walk-away by looking at mutually acceptable alternatives
- Recognize when you’ve won!
Please contact me if you have any questions or comments.