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Practitioner Guide

Red Team Your Case

FMEA is the structured methodology engineers use to prevent failures, from chipsets to data centers to rockets. It was built for machines. Litigation has humans, with wounds, biases, and escalation patterns that amplify every failure mode. ARPN adapts FMEA for adversarial human systems, starting left of boom.

For litigators, law students, and anyone who needs to predict what the other side will do next. Built by an engineer who learned failure analysis across fraud detection, hyperscale cloud infrastructure, and manufacturing, then applied it to litigation.

Colin McNamara · 2026

Why Your Risk Assessment Is Wrong

Three approaches. Two missing dimensions. One framework that closes the gap.

Standard FMEA

  • Built for machines
  • Assumes rational actors
  • S × O × D = RPN
  • Aerospace, medical, manufacturing

What’s Missing

  • Humans aren’t rational
  • Biases amplify failures
  • Disputes cascade across claims
  • Emotions drive decisions under stress

ARPN

  • Built for adversarial humans
  • Models behavioral amplification
  • S × O × D × BA × CR
  • Litigation, negotiation, strategic conflict

FMEA prevents failures in the most complicated systems on earth. ARPN applies that discipline to the most unpredictable system: adversarial humans. We added two dimensions, Behavioral Amplifier and Cascade Reach, so the scoring captures what people actually do under stress, not what rational actors should do.

The ARPN Formula

Five factors. One score. A complete picture of adversarial risk.

ARPN = S × O × D × BA × CR
(max 10,000)
S
Severity
(1–10)
How bad if this failure occurs?
1 = scheduling delay
5 = drops a claim
7 = kills a major claim
10 = case dismissed
O
Occurrence
(1–10)
How likely is this failure?
1 = <2%
5 = 20–35%
8 = 65–80%
10 = >95%
D
Detectability
(1–10)
How late would we notice? Inverted: low = good.
1 = same day
5 = 2–4 weeks
10 = undetectable
BA
Behavioral Amplifier
(0.5–2.0)
Does this trigger irrational escalation? Powered by the 5-Tier BMF.
0.5 = calming
1.0 = neutral
1.5 = moderate escalation
2.0 = full activation
CR
Cascade Reach
(1–5)
How many related claims are impacted?
1 = contained
3 = 3–4 claims
5 = campaign-wide
Critical
2001 – 10,000
High
1000 – 2000
Moderate
400 – 999
Low
1 – 399

The 5-Tier Behavioral Modifier Framework

Five tiers of behavioral context that power the BA dimension, from personality baseline to system-level dynamics.

T1
Personality Architecture
Baseline decision-making patterns and cognitive style. A detail-oriented CFO processes risk differently than a big-picture operator. Under stress, their failure modes diverge.
T2
Wound Stack
Historical triggers that distort current decisions. A partner who was previously cheated in a business deal overweights betrayal signals, and routine audits feel like accusations.
T3
Situational Amplifiers
Loss domain, escalation state, identity threats. A party in loss domain becomes risk-seeking, preferring the gamble of trial over the certainty of settlement.
T4
Chemical / Neurological
Substance effects, medication, fatigue. Alcohol impairment at a critical negotiation reduces impulse control and increases commitment escalation.
T5
Relational / System-Level
Advisor influence, group dynamics, professional identity. A partner whose spouse pressures them to settle may prioritize relationship preservation over litigation strategy.

T4 and T5 are the dimensions most commonly overlooked in traditional risk assessment, and in our validation data, they produced the highest-impact findings.

12 Cognitive Biases in Litigation

The behavioral economics that power the BA dimension. Each is decades-established. What’s new is applying them systematically to litigation failure modes.

Loss Aversion
Losses hurt 2x more than equivalent gains.
Parties in loss domain reject settlements a rational actor would accept.
Endowment Effect
Overvaluing what you possess.
“My business” is worth more to the holder than any appraisal.
Status Quo Bias
Preferring the current state.
Third-party witnesses default to inaction even when cooperation serves them.
Hyperbolic Discounting
Overweighting immediate outcomes.
Short-term operational gains despite obvious future legal exposure.
Anchoring
First information sets the reference point.
First evidence presented frames everything that follows.
Sunk Cost Fallacy
Continuing because of past investment.
“We’ve come too far to settle now.”
Commitment Escalation
Doubling down after public commitment.
Maintaining a narrative contradicted by evidence because walking it back means admitting the position was wrong.
Reactance
Resisting when freedom is threatened.
Aggressive evidence deployment can entrench rather than capitulate.
Motivated Reasoning
Processing information to support existing beliefs.
Evidence of wrongdoing reframed as “they’re out to get me.”
Framing Effects
Presentation changes the decision.
“Interim protections” vs. “restrictions”: same terms, different responses.
Availability Heuristic
Overweighting vivid or recent information.
One recorded conversation outweighs 50 pages of documentary evidence.
Certainty Effect
Overweighting guaranteed outcomes.
A guaranteed preservation order is worth more than a probable trial victory.

These aren’t speculative. Each is backed by decades of behavioral economics research (Kahneman, Tversky, Thaler). What’s new is applying them systematically to litigation failure modes through the BA dimension.

Red Team / Blue Team: The Five Phases

A structured adversarial analysis process. Find your vulnerabilities before they do. Find theirs before they hide them.

A
Decompose
Break the dispute into decision points
B
Blue Team
Find your vulnerabilities
C
Red Team
Find their vulnerabilities
D
Score & Rank
S × O × D × BA × CR = ARPN
E
Act
Mitigate yours, exploit theirs

Phase B: Blue Team Questions

  1. What are our weakest claims? Where could a motion to dismiss succeed?
  2. Where are we most exposed to a credibility attack on our evidence or witnesses?
  3. Which of our positions rely on assumptions that haven’t been tested under cross-examination?
  4. If opposing counsel had unlimited resources, where would they attack first?

Phase C: Red Team Questions

  1. Where has the opposing party made public commitments they cannot walk back without losing credibility?
  2. What behavioral patterns suggest escalation rather than rational settlement?
  3. Which of their positions are contradicted by documentary evidence they may not know we have?
  4. Where are their advisors most likely to give bad advice, and what would the consequences be?

L&S Pro-Line v. Gagliano

A real appellate case, scored with ARPN. Every number is verifiable against the published opinion.

L&S Pro-Line, LLC v. Gagliano, No. 09-21-00178-CV (Tex. App.–Beaumont 2024, mem. op.)

Two-member Texas LLC (L&S Pro-Line), oilfield services. Burkett held 75%, Gagliano held 25%. The Company Agreement required consent for expenditures over $5,000 and included a Push-Pull buyout provision. What started as a business disagreement escalated into a multi-year war. The jury returned a $32M verdict, including $15.1M in punitive damages for malice. On appeal, the Ninth Court affirmed in part but reversed key damage awards and remanded for further proceedings.

Analytical perspective: This example scores from a trial-level perspective: what could counsel have predicted before the verdict? We score individual failure modes (evidence items, procedural events, behavioral patterns). An appellate-level analysis of the same case surfaces architecture-level failures (threshold legal rulings, damages segmentation, theory selection) with higher Cascade Reach scores and often Critical-tier findings. Both perspectives are valid. Choose yours before you score.

2015–2016
Burkett purchases 75% of L&S Pro-Line (2015). Gagliano purchases 25% (2016). They execute the Company Agreement with $5K consent requirement and Push-Pull buyout clause.
2017
Gagliano serves as CFO. Burkett begins making expenditures without consent, including payments later determined by the jury to total $525,337 in personal expenses.
2018
Company CPA withdraws engagement, citing “suspicious activities” in the books. Gagliano raises concerns about unauthorized spending.
2018
Burkett physically excludes Gagliano from the business premises. Gagliano never returns to perform CFO duties.
2019
Burkett invokes Push-Pull buyout provision (§12.7b), sends $1.3M cashier’s check. Gagliano contests validity due to prior material breach.
2018–2020
Discovery reveals bribery of a customer’s employee and hiring of a registered sex offender for field operations. Burkett files five amended petitions.
2021
Eight-day jury trial in Montgomery County (Judge Santini). Jury finds breach of contract, breach of fiduciary duty with malice, and intentional self-enrichment. Total jury verdict: ~$32M including ~$15.1M in punitive damages.
2024
Ninth Court of Appeals (Beaumont) affirms in part, reverses Tactical’s lost profits and punitive damage awards, remands for further proceedings. The behavioral dynamics that drove the jury’s findings remain instructive regardless of the appellate outcome.
Blue Team FMEA: Gagliano’s Vulnerabilities
Rank ID Failure Mode S O D BA CR ARPN Tier
1 BT-2 Push-Pull buyout declared valid, loss of standing 8 5 3 1.2 2 288 Low
2 BT-1 CFO duty negligence undermines counterclaim credibility 6 7 4 1.0 1 168 Low
3 BT-3 Jury believes unauthorized payments narrative 7 4 5 1.0 1 140 Low
Red Team FMEA: Burkett’s Vulnerabilities
Rank ID Failure Mode S O D BA CR ARPN Tier
1 RT-5 Bribery + sex offender hiring: jury finds malice 9 7 4 2.0 1 504 Moderate
2 RT-2 $525K self-dealing proven by bank records 9 8 2 1.7 2 489.6 Moderate
3 RT-4 CPA withdraws citing “suspicious activities” 8 9 2 1.2 2 345.6 Low
4 RT-3 Commitment escalation: 5 amended petitions 7 8 3 1.7 1 285.6 Low
5 RT-1 Physical exclusion destroys credibility with jury 8 9 1 1.5 2 216 Low
Teaching Moment

Standard RPN (S × O × D) would have rated RT-5 at 252 (LOW tier). ARPN rates it 504 (MODERATE) because the BA=2.0 captures Burkett’s escalating pattern of behavioral failure. The jury agreed: they found malice and awarded ~$15.1M in punitive damages. The behavioral amplification was real and measurable.

What ARPN would have told Burkett’s counsel:

  • The physical exclusion was the highest-risk single event (vivid, jury-devastating)
  • The commitment escalation across 5 amended petitions signaled entrenchment, not strategy
  • The bribery + hiring decisions showed BA=2.0 judgment failure, the kind juries punish with punitives

The thesis: After scoring, look for the pattern. In L&S v. Gagliano, the trial-level thesis is: behavioral escalation drove a majority owner past the point of rational decision-making. The BA dimension captures this; standard RPN cannot. An appellate-level thesis would be different: threshold legal architecture errors contaminated the entire case structure. Same case, different perspective, different insight.

Source Documents

All facts in the worked example above come from these public court records. Download them to verify the scoring or use them to practice the ARPN framework yourself.

Full docket (62 documents): Texas Courts: Case 09-21-00178-CV →

Score Your Case

You’ve learned the framework. You’ve seen it applied. Now use it. The PDF worksheet has everything you need: blank FMEA tables, the scoring scales, and AI agent context so your assistant can help you score.

6 pages. Blank FMEA tables, scoring scales, 12-bias catalog, and AI agent context for assisted scoring.

Before You Score: Choose Your Perspective
Forward-looking: What could go wrong from here? Use this for active cases, pre-trial strategy, or settlement positioning.
Backward-looking: What went wrong and why? Use this for post-verdict analysis, appellate strategy, or case studies.
The Process at a Glance
1. Decompose Break the dispute into decision points: every filing, deadline, handoff, or evidence deployment moment.
2. Blue Team At each point: Process failure? Information failure? Opponent anticipation? Behavioral failure?
3. Red Team Mirror it: Process failure? Information failure? Coalition failure? Behavioral failure?
4. Score & Rank S × O × D × BA × CR = ARPN. Rank descending. Classify by tier.
5. Act Blue team: mitigate + set tripwires. Red team: exploit + set tripwires.
Quick Reference
Tier Thresholds
Critical 2001–10,000
High 1000–2000
Moderate 400–999
Low 1–399
BA Scale
0.5: Calming
1.0: Neutral
1.5: Moderate amplification
2.0: Full activation
CR Scale
1: Contained (this claim only)
3: 3–4 claims affected
5: Campaign-wide (6+ claims)

Using an AI assistant? Load the PDF worksheet and your case documents into a conversation. Then type:

Use the attached worksheet and case documents to analyze this case.

The embedded agent context will guide your AI through scoring, thesis generation, and, if you keep going, counsel briefs, mandate matrices, remand checklists, and even draft court orders. In validation testing, this single prompt produced nine attorney-grade deliverables from a public case record.

Tested Under Fire, Not in a Lab

These results are from Acquit.ai’s own prediction tracking system, not the case study above. Predictions are logged before outcomes occur. No post-hoc fitting. No cherry-picking.

91%
Prediction Accuracy
201
Tracked Predictions
5
Behavioral Tiers

Every prediction is logged before the outcome occurs. No post-hoc fitting. No cherry-picking. The framework is tested against real-world litigation dynamics where the stakes are maximum and the actors are under extreme stress.

The methodology was developed under live-fire conditions, not in a laboratory.

From Manual to Automated

You just scored 8 failure modes manually. Imagine scoring hundreds, across multiple concurrent disputes, with automated calibration that improves with every prediction. Then generating a one-page counsel brief that translates those scores into leverage, risk, settlement posture, and recommended moves with deadlines. That’s what the pipeline produces. And it starts left of boom. ExhibitCTL collects and hashes your evidence before you know you’ll need it.

ECT
ExhibitCTL
ARPN
Analyze
TRK
Predict
BRF
Brief

See It In Action

The ARPN Framework powers the Acquit Score™. From manual scoring to automated case intelligence. See it applied to your case data.

Get Your Acquit Score
Built on ExhibitCTL, open source evidence collection (MIT license)
Presenting “From Sentiment to Sentient” at the AI & Law Summit, March 27

References

  • L&S Pro-Line, LLC v. Gagliano, No. 09-21-00178-CV (Tex. App.–Beaumont 2024, mem. op.)
  • IEC 60812:2018, Failure modes and effects analysis (FMEA and FMECA)
  • Kahneman, D. & Tversky, A. (1979). Prospect Theory: An Analysis of Decision under Risk. Econometrica, 47(2), 263–291.
  • Thaler, R. (1980). Toward a positive theory of consumer choice. Journal of Economic Behavior & Organization, 1(1), 39–60.
  • Brehm, J.W. (1966). A Theory of Psychological Reactance. Academic Press.
  • Staw, B.M. (1976). Knee-deep in the big muddy: A study of escalating commitment to a chosen course of action. Organizational Behavior and Human Performance, 16(1), 27–44.

ARPN Framework and Sentient Analysis Methodology © 2026 Colin McNamara / Acquit.ai. Licensed under Creative Commons Attribution-NonCommercial 4.0 International (CC BY-NC 4.0). Attribution required for academic and professional use. Commercial licensing: colin@acquit.ai