SECTION 1.46. Conduct of Negotiations

(a) The parties' settlement approval procedures shall be disclosed prior to, or at the beginning of, negotiations. To the extent possible, the parties shall select negotiators who are knowledgeable about the subject matter of the dispute, who are in a position to reach agreement, and who can credibly recommend approval of an agreement.

(b) Unless the parties agree otherwise, each party shall be responsible for its own costs incurred in connection with a negotiation, including, without limitation, the costs of attorney's fees, consultant's fees, expert's fees, and mediation costs.

(c) The parties may conduct negotiations with the assistance of one or more neutral third parties. A negotiation under this subchapter may be conducted by any method, technique, or procedure authorized under the contract or agreed upon by the parties, including, without limitation, negotiation in person, by telephone, by correspondence, by video conference, or by any other method that permits the parties to identify their respective positions, discuss their respective differences, confer with their respective advisers, exchange offers of settlement, and settle. Parties may choose an assisted negotiation process other than mediation, including without limitation, processes such as mini-trials, early case neutral case evaluation by an impartial third-party, and fact-finding by an expert. If the parties choose to mediate their dispute, the mediation shall be conducted in accordance with §1.27, (relating to Referral to ADR Coordinator) through §1.35, (relating to Partial Settlements through ADR).

(d) The agency's negotiation strategy and neutral third parties shall be approved by the ADR coordinator, and the results of the negotiations reported to the ADR coordinator.

Source Note: The provisions of this §1.46 adopted to be effective February 26, 2004, 29 TexReg 1658