Auto insurance claim mediation is becoming more common in the legal world. As it is cheaper and faster than a traditional lawsuit litigated in court, many injured parties are turning to mediation to resolve their auto accident dispute. Mediation, though, is a unique process that has both drawbacks and benefits.
Mediation Explained
Mediation is a legal procedure by which the parties involved in a dispute agree to submit their issue to a third party in hopes that the third party will assist them in reaching a mutually acceptable agreement. Although many states require litigating parties to attend mediation before setting a trial date, mediation must usually be agreed to by both sides before it will be conducted. There is no requirement that either party have previously filed a lawsuit about the dispute prior to being able to attend mediation; all that is required is that the parties have a dispute they have not yet resolved.
The Mediation Process
During mediation, the neutral third party attempts to broker a deal between the feuding parties. To do so, he first finds out what both sides want and the minimum amount they are willing to accept. A mediation can require a party to do something or behave a certain way in addition to awarding a sum of money. The mediator keeps the party’s desires confidential while goes back and forth between the two parties and attempts to encourage them to budge from their current position.
The Effect of a Mediated Settlement Agreement
In and of itself mediation is not binding. A settlement reached during mediation becomes binding only after both parties have signed their acceptance of the settlement terms. At that point, either party may take the other side to court for failing to abide by the terms of the mediated settlement.
Some mediation settlements must be approved by the court. In this circumstance, the agreement is not binding until the court has reviewed and accepted the settlement’s terms, despite the fact that both parties have agreed to it previously. It is possible for a judge to reject a mediated settlement, at which time the parties would have the choice of returning to mediation or pursuing litigation in court.
Binding Decisions: Arbitration
The legal procedure similar to mediation in which the decision is binding is called arbitration. In this procedure, a neutral third party permits both sides to review evidence and provide limited testimony about the facts of the dispute and then makes a decision. The arbitrator’s decision is made according to his judgment and is binding on all parties the moment it is announced.
Getting Legal Assistance
If you are involved in a dispute that is yet unresolved and are curious about whether mediation will assist in resolving the problem, seek legal advice. An attorney will review the facts of the dispute, explain the rules of mediation in your particular state and advise you about the best course for your claim.
