Negotiation
Negotiation is an informal process conducted between the attorneys for both sides. The clients are typically not involved initially, and the lawyers discuss the matter. In most cities, attorneys are at least acquainted and able to discuss the pros and cons of their respective cases in a friendly manner. It is possible that an agreement can be worked out over the telephone in the initial stages of the lawsuit.
An attorney never agrees to any type of settlement terms without first discussing the offer with her client and obtaining the client's authorization to accept the settlement. Agreeing to settle without the client's authorization violates rules of conduct and ethics.