Lawsuit Defense StrategyJohn Campbell, an employee of Manhattan Construction Company, claims to have injured his back as a result of a fall while repairing the roof at one of the Eastview apartment buildings. In a lawsuit asking for damages of $1,500,000, filed against Doug Reynolds, the owner of Eastview Apartments, John claims that the roof had rotten sections and that hisfall could have been prevented if Mr. Reynolds had told Manhattan Construction about the problem. Mr. Reynolds notified his insurance company, Allied Insurance, of the lawsuit.Allied must defend Mr. Reynolds and decide what action to take regarding the lawsuit. Following some depositions and a series of discussions between the two sides, John Campbell offered to accept a settlement of $750,000. Thus, one option is for Allied to pay John $750,000 to settle the claim. Allied is also considering making John a counteroffer of$400,000 in the hope that he will accept a lesser amount to avoid the time and cost of going to trial. Allied’s preliminary investigation shows that John has a strong case; Allied is concerned that John may reject their counteroffer and request a jury trial. Allied’s lawyers spent some time exploring John’s likely reaction if they make a counteroffer of $400,000. The lawyers concluded that it is adequate to consider three possible outcomes to represent John’s possible reaction to a counteroffer of $400,000: (1) John will accept the counteroffer and the case will be closed; (2) John will reject the counteroffer and elect to have a jury decide the settlement amount; or (3) John will make a counteroffer to Allied of$600,000. If John does make a counteroffer, Allied has decided that it will not make additional counteroffers. It will either accept John’s counteroffer of $600,000 or go to trial.If the case goes to a jury trial, Allied considers three outcomes possible: (1) The jury rejects John’s claim and Allied will not be required to pay any damages; (2) the jury finds in favor of John and awards him $750,000 in damages; or (3) the jury concludes that John has a strong case and awards him the full amount of $1,500,000.Key considerations as Allied develops its strategy for disposing of the case are the probabilities associated with John’s response to an Allied counteroffer of $400,000, and the probabilities associated with the three possible trial outcomes. Allied’s lawyers believe the probability that John will accept a counteroffer of $400,000 is .10, the probability thatJohn will reject a counteroffer of $400,000 is .40, and the probability that John will, himself, make a counteroffer to Allied of $600,000 is .50. If the case goes to court, they believe that the probability the jury will award John damages of $1,500,000 is .30, the probability that the jury will award John damages of $750,000 is .50, and the probability that the jury will award John nothing is .20.Managerial ReportPerform an analysis of the problem facing Allied Insurance and prepare a report that summarizes your findings and recommendations. Be sure to include the following items:1. A decision tree2. A recommendation regarding whether Allied should accept John’s initial offer to settle the claim for $750,0003. A decision strategy that Allied should follow if it decides to make John acounteroffer of $400,0004. A risk profile for your recommended strategy
Unitary Method
The word “unitary” comes from the word “unit”, which means a single and complete entity. In this method, we find the value of a unit product from the given number of products, and then we solve for the other number of products.
Speed, Time, and Distance
Imagine you and 3 of your friends are planning to go to the playground at 6 in the evening. Your house is one mile away from the playground and one of your friends named Jim must start at 5 pm to reach the playground by walk. The other two friends are 3 miles away.
Profit and Loss
The amount earned or lost on the sale of one or more items is referred to as the profit or loss on that item.
Units and Measurements
Measurements and comparisons are the foundation of science and engineering. We, therefore, need rules that tell us how things are measured and compared. For these measurements and comparisons, we perform certain experiments, and we will need the experiments to set up the devices.
Lawsuit Defense Strategy
John Campbell, an employee of Manhattan Construction Company, claims to have injured his back as a result of a fall while repairing the roof at one of the Eastview apartment buildings. In a lawsuit asking for damages of $1,500,000, filed against Doug Reynolds, the owner of Eastview Apartments, John claims that the roof had rotten sections and that his
fall could have been prevented if Mr. Reynolds had told Manhattan Construction about the problem. Mr. Reynolds notified his insurance company, Allied Insurance, of the lawsuit.
Allied must defend Mr. Reynolds and decide what action to take regarding the lawsuit. Following some depositions and a series of discussions between the two sides, John Campbell offered to accept a settlement of $750,000. Thus, one option is for Allied to pay John $750,000 to settle the claim. Allied is also considering making John a counteroffer of
$400,000 in the hope that he will accept a lesser amount to avoid the time and cost of going to trial. Allied’s preliminary investigation shows that John has a strong case; Allied is concerned that John may reject their counteroffer and request a jury trial. Allied’s lawyers spent some time exploring John’s likely reaction if they make a counteroffer of $400,000.
The lawyers concluded that it is adequate to consider three possible outcomes to represent John’s possible reaction to a counteroffer of $400,000: (1) John will accept the counteroffer and the case will be closed; (2) John will reject the counteroffer and elect to have a jury decide the settlement amount; or (3) John will make a counteroffer to Allied of
$600,000. If John does make a counteroffer, Allied has decided that it will not make additional counteroffers. It will either accept John’s counteroffer of $600,000 or go to trial.
If the case goes to a jury trial, Allied considers three outcomes possible: (1) The jury rejects John’s claim and Allied will not be required to pay any damages; (2) the jury finds in favor of John and awards him $750,000 in damages; or (3) the jury concludes that John has a strong case and awards him the full amount of $1,500,000.
Key considerations as Allied develops its strategy for disposing of the case are the probabilities associated with John’s response to an Allied counteroffer of $400,000, and the probabilities associated with the three possible trial outcomes. Allied’s lawyers believe the probability that John will accept a counteroffer of $400,000 is .10, the probability that
John will reject a counteroffer of $400,000 is .40, and the probability that John will, himself, make a counteroffer to Allied of $600,000 is .50. If the case goes to court, they believe that the probability the jury will award John damages of $1,500,000 is .30, the probability that the jury will award John damages of $750,000 is .50, and the probability that the jury will award John nothing is .20.
Managerial Report
Perform an analysis of the problem facing Allied Insurance and prepare a report that summarizes your findings and recommendations. Be sure to include the following items:
1. A decision tree
2. A recommendation regarding whether Allied should accept John’s initial offer to settle the claim for $750,000
3. A decision strategy that Allied should follow if it decides to make John a
counteroffer of $400,000
4. A risk profile for your recommended strategy
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