# Evaluate a settlement offer with a simple decision tree

Compares a settlement offer to the expected value of continuing, including costs, timing, and non-money factors, to support a recommendation.

- Topic: Legal & Compliance
- Framework: RTF
- Level: Standard
- Tags: Legal, Analyze, Fill-in Template
- Source: https://www.thinkwithprompt.com/prompts/evaluate-a-settlement-offer-with-a-simple-decision-tree

## Prompt

```text
Help me evaluate a settlement offer against the alternative of continuing the dispute.

**Dispute summary:** [SHORT]
**Our side:** [claimant / defendant]
**Offer on the table:** [amount and key terms - payment timing, confidentiality, admissions, releases, non-money terms]
**Our estimates (from the legal team):**
- Probability of winning on liability: [%]
- Likely damages range if we win / lose: [AMOUNTS]
- Remaining legal costs through trial and appeal: [AMOUNT]
- Time to final outcome: [MONTHS]
- Chance of collecting a judgment: [% - relevant if claimant]
- Fee shifting or costs risk: [DETAILS]
**Non-money factors:** [e.g. precedent for other claims, publicity, relationship, management time, insurance coverage]

Do this:
1. Build a simple decision tree with each branch, its probability, and net outcome after costs.
2. Calculate the expected value of continuing and compare it to the offer; show the arithmetic.
3. Run a sensitivity check: how the answer changes if the win probability moves by plus or minus 15 points, or costs run 30% over.
4. Weigh the non-money factors separately; do not force them into a number.
5. List settlement terms worth negotiating beyond the amount (release scope, confidentiality, no admission, payment schedule, tax treatment [CONFIRM WITH TAX ADVISOR]).
6. Suggest a counteroffer range and the reasoning.

Use only the estimates I give; mark any missing input as [ESTIMATE NEEDED]. This is decision support, not legal advice; the responsible lawyer and the decision-maker must make the final call.
```

## What to fill in

- SHORT
- claimant / defendant
- AMOUNTS
- AMOUNT
- MONTHS
- DETAILS
- CONFIRM WITH TAX ADVISOR
- ESTIMATE NEEDED

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