If you’ve been hurt because someone else was negligent, enduring a lengthy court case sounds intimidating. On the positive side, enduring the courts isn’t the only option for your case to be resolved. Many personal injury cases are resolved using Alternative Dispute Resolution (ADR), which is a method you can use to save yourself time, money, and stress.
If you are unsure what it is, contact personal injury lawyers at Lewis Law, as they can help you understand your rights and legal options. Here’s what you need to know about how Alternative Dispute Resolution operates and the different types available.
What Is Alternative Dispute Resolution?
Alternative dispute resolution is an industry term that means a way of resolving legal disputes that are short of trial. It gives both parties, typically the injured party and the fault party (or their insurance carrier), a chance to negotiate a settlement out of court.
ADR is typically encouraged by the courts, and in some jurisdictions, it’s even required before a case proceeds to trial. Some of the most frequent types include mediation, arbitration, and plain old negotiation, each offering a different level of structure and finality.
Types of ADR in Personal Injury Cases
1. Mediation
Mediation is a process where there is a neutral third person (the mediator) to help both parties communicate. The mediator makes no decision but assists both parties to come to a mutually acceptable decision. Mediation is often non-binding, such that either party has the option of pursuing a court action if consensus cannot be reached.
2. Arbitration
Arbitration is more formal than mediation. Both sides present their case to an arbitrator (or a group of them), who makes a ruling.
Arbitration can be binding or non-binding, depending on what the parties agree beforehand. Binding arbitration is final and enforceable, similar to a court decision.
3. Informal Negotiation
This is the least formal process and generally occurs directly between attorneys or insurance adjusters. The majority of personal injury cases are settled in this manner without ever reaching the court. Negotiations can occur at any point in the process of making a claim, even before a suit is filed.
Advantages of Using ADR in a Personal Injury Claim
There are several advantages to settling a case with ADR:
- Faster conclusion: Court cases can take months or even years. ADR typically comes to a conclusion much more quickly.
- Cost-effective: Avoiding litigation translates into lower attorney fees and lower court costs.
- Privacy: ADR is conducted confidentially, whereas court cases are public records.
- Less adversarial: ADR encourages cooperation, which can salvage relationships or do away with emotional tension.
- Control of the outcome: Both sides have more control over shaping the outcome in ADR.
When ADR Is a Good Idea
ADR is a good solution in the majority of personal injury cases, especially when both sides are open to negotiation. It works best when:
- Liability is certain, but there is a difference of opinion regarding the value of the case.
- Both sides prefer to avoid the risk and media coverage of a trial.
- ADR is suggested or ordered by the court prior to litigation, which is acceptable.
With that said, ADR will not work if the other side is not willing to negotiate in good faith or if there are complex legal issues that must be resolved by a judge or jury.
ADR vs. Trial
While ADR is advantageous in many ways, it is not suitable for all cases. Trials may result in larger awards, particularly if punitive damages are involved. But they are also riskier, more time-consuming, and expensive. Getting the advice of experienced counsel can help you decide if ADR is the best path for your case.
Conclusion
Alternative Dispute Resolution is an effective tool in personal injury law. By mediation, arbitration, or negotiation, ADR can help you resolve your claim faster and more efficiently than traditional litigation.
If you’re not sure if a choice is right for you, a personal injury lawyer can analyze your case and guide you through the best course of action, whether that’s through settlement talks or trial.