A Pyrrhic Victory or a Real Compromise
Pyrrhus, King of Epirus, won the Battle of Asculum in 279 B.C. He lost so many men that he reportedly said: “One more such victory and we shall be undone.”
In disputes over money, Pyrrhic victories occur more often than anyone cares to admit.
You win the case after three years. You pay lawyers, court fees, expert advances. You obtain a judgment—and the debtor has become insolvent in the meantime. You have your rights confirmed by the court and an empty account.
Sometimes it is better to get less, but now.
The Arithmetic of Litigation
Let us calculate.
Court fee: Typically a percentage of the claim value. On a $200,000 debt—thousands at the outset, with no guarantee of outcome.
Advances: Court-appointed expert—several thousand more. Every additional evidentiary motion is a potential cost.
Legal representation: Depends on the model, but in the range of thousands or tens of thousands for the entire proceeding.
Time: Statistics show commercial cases average eighteen to twenty-one months. First instance. If the debtor appeals—add another year.
Recoverable costs: Court fees—yes. Expert fees—yes. Attorney’s fees—theoretically yes, but in practice courts award statutory minimums that rarely cover actual expenditure.
Conclusion: even winning, you pay extra.
Time Is Money You Will Not Recover
Statutory interest for delay sounds attractive—double digits annually in many jurisdictions. Commercial transaction interest rates may be higher still.
But calculate differently. That $200,000 frozen with the debtor for three years is capital you cannot invest, cannot turn over, cannot use to grow your business. The interest you are theoretically owed does not compensate for lost opportunities.
Benjamin Franklin said: “Time is money.” In litigation, time is money you will not recover—even if you win.
Why Debtors Don’t Pay
Before you decide whether to negotiate, understand why the debtor isn’t paying.
Scenario A: Substantive dispute. The debtor believes he does not owe—he disputes the quality of service, the scope of the contract, the amount claimed. He has his version and is convinced of its correctness.
Scenario B: Liquidity problems. The debtor does not dispute the debt but lacks funds. Temporarily or permanently.
Scenario C: Playing for time. The debtor has money and knows he owes, but counts on you giving up or forgetting.
Each scenario requires a different strategy. In Scenario A—negotiation may clarify a misunderstanding. In Scenario B—restructuring payments may be the only chance to recover anything. In Scenario C—negotiation is a waste of time; the only language is litigation.
Identifying the scenario is the first step.
The Third Eye
William Ury, co-author of “Getting to Yes,” wrote about the importance of the “third eye” in negotiations—the perspective of someone who is not a party to the conflict.
Parties to a dispute are blinded by their own positions. The creditor sees obvious injustice. The debtor sees obviously baseless claims. Both sides are convinced they are right—and both may be wrong.
A lawyer as negotiator brings something the parties lack: distance. She sees the case without emotion. She assesses both sides’ chances in litigation. She can tell a client: “You are right, but you cannot prove it” or “The debtor has weak arguments, but the case will take three years.”
This sober assessment often opens the path to agreement.
What Can Be Negotiated
Reduction of amount. The debtor pays eighty percent immediately; you forgive twenty. You get less, but you get it now.
Installment plan. The debtor doesn’t have the full sum but has cash flow. A payment schedule spread over six, twelve, twenty-four months.
Deferral.