Mediation Discussion and Case Overview

Participants

• Mediator: Unnamed
• Plaintiff: Mr. Kim, represented by Mr. Gibson
• Defendant: Green Consulting, represented by Mr. Smith
• Additional Entities: Monitor (prior company involved), Mr. Lyons (associated with Monitor)

Case Background

• Type: Commercial case
• Nature of Claim: Breach of contract by Green Consulting against Mr. Kim.
• Details:
  • Mr. Kim alleges Green Consulting interfered with economic relations between Monitor and Mr. Kim's company.
  • Claims include unpaid commissions and a loan provided to Monitor.

Defendant's Position

• Claims no prior dealing with Mr. Kim before acquiring Monitor's assets.
• Asserts that liabilities belong to Monitor, not Green Consulting.
• Intends to settle without lengthy legal proceedings.

Mediation Strategy

• Mediation Statements: Parties to provide statements to outline their case views and barriers to settlement.
• Confidential Communications: Encouraged for sensitive settlement ideas.

Plaintiff's Claims

• Financial Claims:
  • $300,000 in unpaid commissions
  • $1 million loan from Mr. Kim
  • Additional claims for sales in China after Green’s acquisition.
• Business Relationship: 10-year history with Monitor and Mr. Lyons.

Defendant's Counterclaims

• Denies liabilities for unpaid commissions or loans.
• Accuses Mr. Kim of selling Green's software without permission.

Key Issues Discussed

• Mediation Process: Initial joint discussion followed by separate meetings with each party.
• Loan and Accounting: Dispute over whether the $1 million was a loan and its accounting status.
• Sales in China: Both parties to verify sales figures to determine owed commissions.

Settlement Negotiations

• Initial Demands:
  • Plaintiff starts at $2 million.
  • Green proposes a $75,000 settlement offer.
• Verification of Sales: Exchange of sales data:
  • STP sales: $400,000
  • Green sales: $250,000

Final Proposals

• Plaintiff: Adjusted demand to $1.375 million
• Defendant: Countered with $250,000
• Potential Alternative Solution: Explore spinning out Monitor and allowing Mr. Kim to re-establish business relations with the spun-off entity.

Resolution

• Monitor Spin-Off: Green agrees to spin off Monitor with all critical assets, offering a chance for Mr. Kim to renew his business dealings with Monitor.
• Financial Settlement: Tentative agreement on $300,000 pending confirmation of new arrangement between Mr. Kim and Monitor.