How Settleindex could have saved $300,000 and 8 months!
This case study shows how SettleIndex can reduce the cost of resolving disputes.
We were fortunate recently to be involved in the defence of a commercial dispute. The Defendant was insured but had a large excess. Using SettleIndex the Defendant’s lawyers modelled the likely settlement value, using only their existing knowledge and feel for the case.
The result surprised them, giving a likely settlement target 50% higher than their initial thinking. It clearly demonstrated that in a complex web of potential outcomes, harnessing our scientific methodology can produce a figure materially different from an unstructured estimate based on the same information.
Settlement at the level of the SettleIndex calculations entailed a hefty input from Insurers. The Insurers decided that they wanted further expert investigation before accepting the SettleIndex figures. As a result a limitation standstill ended and the dispute descended into formal litigation while the investigation was completed. We therefore had a perfect case study, where the indicated course of action was rejected in favour of more investigation!
After eight further (and very expensive) months the case settled at 95% of the SettleIndex predicted value. During the negotiations it became very clear that if the Defendants had negotiated when the standstill was still in place they could have done exactly the same deal. Taking into account the extra defence costs, the overall cost of resolution increased by $300,000 and the settlement was delayed by 8 months.