Why most personal injury lawsuits are settled in mediation

BusinessLegal

  • Author Jonathan Blocker
  • Published March 30, 2011
  • Word count 495

For the past few decades, many people have been trying to avoid the expensive and time-consuming resolution through court trials. Instead, a lot of victims opt to settle disputes by using various types of alternative resolutions. One of the most popular is mediation.

Advantages of Mediation

If the settlement negotiations with the defendant or the insurance company have failed, the parties should try resolving the dispute through mediation. In mediation, the claimant and the adjuster would be able to face each other in a more informal way compared to a court trial. Also, contrary to settlement negotiations, the parties are not merely case files on a desk but they can actually interact with each other in person. An adjuster is more likely to agree to a settlement if he had the opportunity to talk to the victim in person and ask questions.

Furthermore, there are no additional documents or arguments needed for the mediation, which have not yet been presented in the claims process. Unlike in a court trial, the discovery process, which entails the gathering of all relevant information and documents, could cause a significant delay in the court's decision. Also, an unbiased third person, which is the mediator, could give the parties encouragement to conclude an agreement. Usually, mediation yields results within a shorter period of time than in a court trial. The process is also less stressful and less expensive for both parties. The legal system in Colorado has seen a decline in the number of claims being brought to court because a lot more people are enticed by the advantages of mediation.

Hurdles

Like any other legal process, there are also a few challenges that mediating parties could encounter. If the parties do not conclude the mediation proceeding within a few hours, the fee of a professional mediator could be as high as the court expenses. A professional mediator could be someone from a community mediation center or an independent mediator such as a personal injury lawyer in Denver.

Another hurdle the parties could face is the unwillingness of an insurance adjuster to appear in the mediation proceedings. This problem has become very frequent because in mediation, there will be no court orders or summons that will compel any of the parties to appear.

When to Mediate

Considering the advantages and hurdles of mediation: the injured should try to mediate if the parties cannot agree on the compensation and they are at least $2,000 apart. The mediation might not pay off for the parties if they disagree on the amount that is less than $2,000. Also, parties should consider mediation if they have tried every negotiation method available and the only option left is bringing the claim to court. Further, mediation could be the best solution but only when the dispute is limited to the extent of injury and the degree of fault by each party. However, any other missing facts of the case and liability issues might not be resolved through mediation.

In this article Jonathon Blocker writes about personal injury lawyer in Denver read more about injury law firm in Denver

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