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What kind of law is this. Personal injury, family, etc. ?
Coach
Offer to drop enough of A and B as is reasonably likely to generate a counter but gives you a chance to settle on the best terms for yourself. Make clear that C is off the table.
There are far too many unknowns with how this is presented to answer properly. As a general response, you need to figure out Defendant’s interest that C satisfies; why does Defendant want C? Once you know that, see if Plaintiff can offer D to satisfy that interest.
If Defendant insists on C as a response, then say that it is a non-starter for Plaintiff, and it is in Plaintiff’s interest to proceed to trial rather than give C.
If opposing counsel has a reputation for being candid and trustworthy, outright say C is off the table. If you're uncertain about that either because you don't know the attorney or the circumstances of the case demand it, counter with A. Whoever gets the other side within their bracket first is really in the driver's seat.
Plaintiff’s attorney should communicate a willingness to part with half of A. They may settle for all of A, plaintiff keeps B&C. Either way, if C is unreasonable, it shouldn’t factor into a counter.