Lawsuit Strategy

Running head: Lawsuit Defense Strategy

Lawsuit Defense Strategy Managerial Report

Table of Content

Executive Summary 3 Define the Problem – The Decision Tree 4

Recommendations 5

Risk Profile for the Recommended Strategy 5

Appendixes 6

Executive Summary

In the Lawsuit Defense Strategy case, Allied Insurance Company should not accept the offer initiated by the plaintiff, John Campbell. Allied should counteroffer and the company’s stance will be if Mr. Campbell does not accept the counteroffer and makes another offer, we will accept that offer. Mr. Campbell’s case is very strong and if the case goes to trial there is a 50% chance that the jury would award the offer of $750,000 and a 30% chance that the jury would award the initial request of $1.5 million.

Lawsuit Defense Strategy Managerial Report

The findings of the research and analysis in the case where employee of Manhattan Construction Company, John Campbell, is suing client, Doug Reynolds, owner of Eastview Apartments is conclusive. In this managerial report a recommendation of to settle or not to settle will be made, a decision strategy that Allied Insurance Company, the insurance carrier of Mr. Reynolds, should follow if the decision is made to make a counteroffer, and supporting documentation is included.

Define the Problem – The Decision Tree

Allied Insurance must make a decision in the case. They must decide to either settle (d1) or not settle (d2). For each of these decisions there are three options, s1, s2, and s3. Therefore, when the plaintiff made an offer to settle, Allied wanted to strategize and look at options; we can settle by offering a counteroffer, rejecting the roffer, and leaving the plaintiff to make another counteroffer. If we decided to settle, we would make a counteroffer to Mr. Campbell’s offer of $750,000 of $400,000. Essentially we have on the table...