Resolving a Personal Injury Claim via Arbitration or Mediation
Mediation and arbitration are two forms of Alternative Dispute Resolution (ADR) in California. Typically, mediation or arbitration is requested when settlement negotiations stall or break down, and the parties still want to avoid litigation. ADR is most common and often required in family law matters but is typically not required in personal injury cases. If you have a personal injury case, you can request mediation or arbitration when settling a claim isn’t working out in your favor. Mediation and arbitration can produce positive outcomes when the parties are genuinely committed to the process and your attorney implements a winning strategy.
Here’s an overview of what these processes are and how they can help resolve a personal injury claim under the right guidance of an experienced personal injury attorney in Los Angeles. Contact us if you want to find a personal injury lawyer with experience in ADR, or contact us if you simply want to find a smart, experienced personal injury lawyer in the Los Angeles metro area.
What is ADR in California Personal Injury Claims?
ADR is another way to settle a disputed personal injury claim without time-consuming and expensive litigation. ADR can be employed in the following personal injury cases but is not limited to:
- Auto accidents
- Boating accidents
- Bicycling accidents
- Pedestrian accidents
- Dog bites and animal attacks
- Defective product claims
- Slips and falls
- Premises liability claims
- Medical malpractice.
Mediation and arbitration, while being the two basic forms of ADR, are different and can render different results, which may or may not be to your benefit. It’s always important when requesting mediation or arbitration that you have a knowledgeable personal injury attorney representing your interests.
We can help you navigate your claim. Consultations are free, private, and client-focused.
What is Mediation?
Mediation is a process that involves mediators who work to settle disagreements between the parties (plaintiffs and defendants). The mediator acts as a referee. There is a list of issues that must be addressed and the goal is to come to an understanding and agreement on each of those issues. In personal injury cases, it can be the value of medical bills and expenses as well as the monetary value to be attributed to pain and suffering, among many other topics.
Before mediation begins, all parties must sign a confidentiality agreement. This agreement confirms that each party understands that anything discussed during mediation is confidential, meaning each party must keep whatever is discussed or negotiated during mediation to themselves and not disclose it to anyone else. The benefit of the confidentiality agreement is flexibility. Generally speaking, parties may say or agree to things that they wouldn’t at trial, and they don’t risk it being used against (or for) them later.
During mediation, mediators will ask questions, guide the parties, and keep them talking. Not all issues of a personal injury case, however, will be fully addressed and not all outcomes may be entirely achieved. Only those issues where mutual agreement is reached will the parties be bound to them.
What is Arbitration?
Arbitration is a process that involves arbitrators who allow each party to make their individual arguments on each contested issue. It’s similar to a quick and less formal trial where you present opening statements, evidence, and closing statements.
Then, upon hearing each argument, the arbitrator renders a decision. Some arbitration decisions are binding and some are not––it depends if you have the arbitration setup as binding or non-binding.
In non-binding arbitration, if one party does not agree with the decision, then that party can either appeal or file a lawsuit. When the arbitration is binding, the decision is final: each party is bound by the decision and no appeal can be made nor lawsuit filed. Insurance companies are less likely to agree to arbitration unless the decision will be binding and that you as the plaintiff agree to a high-low agreement.
A high-low agreement is a way for insurance companies to safeguard themselves against an award it would deem too high. So, values for the lowest and highest acceptable awards are negotiated prior to arbitration. The following scenario exemplifies the possibilities of a high-low agreement: Stella is bit by the new neighbor’s dog. A settlement could not be reached with the neighbor’s homeowner’s insurance, so Stella’s attorney requests arbitration. The parties agree that the lowest acceptable award amount is $2,000 and the highest is $8,000. If the arbitrator decides Stella should get:
- $1,500 – Stella will actually receive $2,000 (the lower amount) due to the high-low agreement;
- $5,000 – Stella will receive $5,000; or
- $9,000 – Stella will actually only receive $8,000 (the higher amount) due to the high-low agreement.
Arbitration can sometimes be mandatory in first-party claims. It depends on the language of the terms of the contract, particularly if you purchased medical payment or uninsured/underinsured motorist coverage. In third-party claims, arbitration can’t be mandatory because the plaintiff has no agreement (in the form of an insurance policy) with the insurance company.
How Can Mediation or Arbitration Resolve a Personal Injury Claim?
As implied above, mediation or arbitration can help resolve personal injury claims because:
1. Mediation and arbitration allow the parties to choose the mediator or arbitrator;
2. The mediator or arbitrator acts as a third-party to hear the arguments and review the evidence; and
3. The parties––if successful––are able to avoid a time-consuming and expensive trial.
In order for mediation or arbitration to be successful, you need:
- A defendant who genuinely wants to avoid litigation rather than prolong the process, which is done by many insurance companies in an effort to allow the Statute of Limitations to expire, which means you (as the plaintiff) can’t file a lawsuit;
- A lawyer who has experience in mediation or arbitration and who will wholeheartedly advocate your rights and aggressively represent your interests; and
- A mediator or arbitrator who has experience hearing and resolving personal injury cases and who is respected as a fair and just mediator or arbitrator.
With that said, even if mediation or arbitration isn’t successful, the process can go a long way toward helping you resolve your personal injury case. Through mediation, you’ll learn:
- What evidence the defendant has;
- What the defendant’s arguments are; and
- How far or how little they are willing to settle.
This information can be very useful at trial and help you obtain a fairer and more just compensation award. And the same is true for the defendant: the insurance company and its lawyers will take note of your reactions to determine if you will be willing to settle for less, and they’ll be paying attention to the evidence and arguments as well. That’s why it is important to retain a smart, skilled personal injury attorney in Los Angeles who has experience in mediation or arbitration specific to personal injury claims.
Retain an Attorney to Resolve Your Personal Injury Claim in Los Angeles Today
If mediation or arbitration is something you may like to know more about with regard to your own personal injury claim, you’ll need an attorney with experience. ADR requires skill and a thorough understanding of the processes. Get a smart, resourceful personal injury attorney in Los Angeles today by contacting us.
