Early evaluation of liability,
damages, and other factors pertinent to the outcome of a dispute can, with
the help of mediation, result in an early resolution. The earlier a
conflict is resolved, the less expensive it is for the parties, both
monetary as well as in emotional costs.
One
must start with the understanding that all disputes are resolved in one
manner or another. It may be
by a jury trial where the resolution of the dispute is given to twelve
strangers to the dispute; and at the other end of the spectrum, through
mediation where the parties to the dispute themselves fashion a
resolution.
When the parties resolve their own
dispute by mediation, the resolution is long lasting.
Mediation is private, confidential, and only the parties’
imagination and creativity limit resolution. The alternatives for a
jury’s resolution of a conflict are extremely limited.
A jury can award money damages, establish a property line, or in a
replevin action, return property. Through
mediation the parties can fashion a creative resolution which is
advantageous to all parties and may preserve existing relationships.
Lawyers
are hired to resolve their clients’ conflicts and the quicker and more
expedient the conflict can be brought to a resolution, the better the
attorney can serve their clients. In
some situations, the only appropriate way to resolve a dispute is to turn
the decision over to someone else – either a judge for bench trial or to
a jury. Remember, a civil
trial is not a “search for the truth”, but merely one way of resolving
the dispute. Every dispute
has a large gray area, and this is where mediation is appropriate.
Keep in mind the time value of money – a case resolved today for
$100,000 has more value than a case resolved in two years from now for
$100,000, and has a much greater value, if one includes the cost of
preparation and attorney’s fee incurred during the two years that the
dispute lingers before resolution. The
longer a conflict lingers, the more expensive it is for clients, both in
money and emotional expense attached to the dispute.
An unresolved dispute may keep a company from going ahead with its
business plans. An open file
is a direct as well as indirect expense to an insurance company.
Thorough
preparation is a key to successful mediation just as it is to a successful
jury trial. Conflicts are
resolved when the parties define their positions which may then be
evaluated by the other side and then move from their position to their
joint interest – resolving the dispute.
Many insurance carriers have instituted programs, which require
attorneys to evaluate liability as well as damages within 120 days of
filing an answer. If this
timetable is met, there is no reason not to try and resolve the dispute by
mediation at that point. Cases
rarely get better with time. To
the extent risk management departments can gather the information to make
a decision on liability and damages before litigation, it is their best
interest to look at mediation as an appropriate way to resolve the
disputes before litigation.
Certainly
to the plaintiff’s lawyer it is an economic advantage to settle a case
before filing a lawsuit and undertaking extensive litigation.
With discovery rules being what they are today, the other side will
always find your weaknesses. The further the litigation process proceeds, the more likely
weaknesses will become known. Thus,
the early evaluation of your own weaknesses, as well as strengths, can
save time and money. Mediation
can help you understand your strengths and weaknesses when a reasoned and
principled negotiation is undertaken with the other side.
It is not unusual for a dispute to be resolve within a few days or
weeks after mediation, as the parties have a chance to reflect on the
other side’s perspective.
Early
mediation can be a reality check for one’s own evaluation of the
conflict when you learn the other side’s perspective.
To one person, a siren may mean a tragedy has occurred and to
another that help is on its way.
Mediation
with the help of a well-trained mediation can help facilitate these
discussions -- and the sooner the
better.
Allan
Weiss