When the first settlement offer is far below what you expect, you can still reach a fair resolution. The process in New Hampshire follows general civil negotiation principles plus specific court rules that affect litigation strategy. This guide explains practical steps, tactical options, and legal considerations so you can negotiate from a stronger position. This is educational information only and not legal advice.

Understand the legal backdrop

New Hampshire follows the Rules of Civil Procedure and rules governing lawyers’ conduct that can affect settlement strategy. For example, Rule 68 (offer of judgment) can create cost-shifting incentives in litigation, so settlement timing matters. You can read the state court rules here: New Hampshire Court Rules. For help finding a licensed attorney in New Hampshire, consider the New Hampshire Bar Association: NH Bar Association.

Step-by-step approach to negotiate a fair settlement

1. Clarify your goals and bottom line. Decide the least amount you will accept and your ideal outcome. Include non-monetary goals (confidentiality, references, non-disparagement, or a limited release) so you can trade terms without lowering monetary value.
2. Prepare a demand package. Assemble a concise packet that documents your claim: a one-page summary of the claim, key evidence (photos, medical records, pay stubs, contracts), a clear calculation of damages, and a firm monetary demand with a deadline. Present facts, not emotion.
3. Analyze the other side’s position. Consider the payer’s likely exposure, defenses, litigation costs, and desire to avoid publicity. Understanding their risks helps you price a reasonable settlement and frame counteroffers.
4. Use a structured counteroffer strategy. Don’t simply say “no” to a lowball initial offer. Respond with a calibrated counteroffer that narrows the gap: (a) reject the low offer professionally, (b) restate the most persuasive facts, (c) present your new offer (often close to your demand), and (d) explain why your figure is reasonable (evidence, comparable settlements, litigation risk). Give a reasonable response deadline to create momentum.
5. Trade terms, not only numbers. If the other side cannot meet your monetary demand, negotiate on terms that increase your net value: structured payments, interest, payment guarantees, broader releases, confidentiality, or attorneys’ fees. These can bridge differences without changing headline numbers.
6. Use objective anchors and comparables. Cite medical bills, repair estimates, income loss documentation, expert opinions, or comparable settlements (if available). Objective anchors reduce perceptions of arbitrariness and make your demand more persuasive.
7. Consider mediation or neutral evaluation. A mediator can reframe positions, clarify risks, and propose compromise solutions. Courts and insurers often respond well to a mediator’s realistic assessment.
8. Know when to escalate to litigation. If the gap remains wide and your bottom line is reasonable relative to likely litigation outcomes, filing a lawsuit or preparing to litigate can change incentives. Remember that procedural tools—like an offer of judgment under court rules—can affect who pays costs if you turn down certain offers and then receive less at trial.

Practical negotiation techniques

• Ask open questions. “What can you tell me about how you calculated your offer?” This can surface hidden constraints.
• Use silence and pauses. Don’t rush to fill gaps; thoughtful silence can prompt better offers.
• Break big decisions into smaller ones. Propose phased agreements or pilot terms if the other side balks at a full settlement.
• Document every offer and counteroffer in writing. Save emails and letters as evidence of negotiations and timelines.
• Keep emotions out of communications. Stick to facts and consequences.

Example (hypothetical)

Imagine you demand $100,000 for a contract breach. The insurer offers $20,000. You send a demand package with loss calculations and a 30-day deadline. You counter at $85,000, explain your damages with documents, and offer a 60/40 structured payment plan as a concession. The insurer counters at $50,000. You propose mediation; the mediator helps both sides reach $72,500 plus a confidentiality clause. That result preserves value without trial costs.

Key New Hampshire procedural considerations

Timing matters in litigation. Offers made under court rules or formal written proposals may trigger fee or cost consequences if a case proceeds to judgment. Review the relevant New Hampshire court rules before rejecting or making formal offers; see the New Hampshire Court Rules at https://www.courts.state.nh.us/rules/rules.htm. Also remember lawyers must follow professional conduct rules while negotiating—details appear on the state court rules page for attorneys.

When to hire an attorney

Hire a lawyer when the amount, complexity, or stakes make negotiation risky for a non-lawyer. An attorney can:

• Assess realistic settlement value and litigation risks;
• Prepare demand packages and formal offers;
• Negotiate strategically and draft enforceable settlement agreements with proper release language; and
• Use court procedures to improve bargaining leverage.

To find a New Hampshire attorney, start with the New Hampshire Bar Association: https://www.nhbar.org/.

Helpful Hints

• Set a firm bottom line before you start negotiating and don’t reveal it early.
• Always back monetary requests with documentation and clear calculations.
• Prioritize terms you can trade (payment schedule, confidentiality, limited release).
• Use mediation early if talks stall; it’s less expensive than full litigation.
• Get any settlement in writing and include an explicit release and payment schedule.
• Read settlement releases carefully—broad language can waive unrelated future claims.
• Be mindful of deadlines tied to offers; statutory or court rules may impose time limits.
• Keep copies of all communications and receipts for payments.
• Ask an attorney to review complex releases, confidentiality clauses, or tax implications.