The Use of Round Numbers in Trial and Settlement

Which number seems higher: $325,425 or $325,000? There's an interesting analysis of this question from Ron Miller at The Maryland Injury Lawyer Blog: "Exact Numbers in Personal Injury Cases."

Miller's post deals with trials but also touches on settlement. When settling a case, the use of round numbers in a demand or offer -- $450,000 -- sends a completely different signal from a more precise number like $448,335.00.

Read the post to find out why, then keep Miller's points in mind during trial and settlement whether you're working for the plaintiff or the defense.

Comments

[Bradley Coxe]

I wrote something similar based on an article in Scientific American entitled "why things cost $19.95."

http://nclawyer.typepad.com/north_carolina_civil_litg/2008/05/negotiate-in-od.html

[BloggerPal]

The use of exact number in settlement or trial could not be imposed strictly. This is because the judgment includes interest. Moreover, actual damages, for example, usually involve invoices or receipts, which bear inexact amounts.