Suppose that in the punitive damages phase of the Deepwoter Horizon case, both sides expect a jury award of $2 billion on appeal, and that if they proceed with the case without settling, the additional fees will be $100 million for the defendant (BP) and $50 million for the plaintiffs. On a number line similar to those in Figure 15.1, indicate the expected judgment (J), each side's threat point (I, and I, and the settlement range.

Figure 15.1

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These number lines represent possible settlement values, increasing from left to right. Plaintiff is better off going to trial than settling here. Plaintiff's Threat Point Tp=Jp-Fp Plaintiff is better off going to trial than settling here. SETTLEMENT RANGE Both sides prefer settlement in this range to trial. Ja Expected Jury Award Jd=Jp SETTLEMENT RANGE Tp=Jp-Fp Jd Plaintiff is better off going to trial than settling here. Ta Defendant is better off going to trial than settling here. Defendant's Threat Point Td=Jd+Fd Defendant is better off going to trial than settling here. Jp Td Jd+Fd Defendant is better off going to trial than settling here. Tp Jp