Mediation is a popular method of resolving personal injury claims outside of court. A neutral third-party, known as the mediator, helps the accident victim reach a mutually agreeable settlement with the person claimed to be at fault. Insurance companies favor mediation over going to trial, but the process can hold important benefits for claimants as well.

Here is a summary of why personal injury claim mediation is often considered an attractive alternative to a traditional lawsuit:

  1. Cost-effective solution — Although plaintiffs’ attorneys in personal injury cases work on contingency fees, their clients must shoulder payment of expert witness costs and other expenses that can diminish the value of an eventual settlement or award. In mediation, the costs are lower because the process is less formal and faster. Defendants’ insurance companies also save on legal expenses, which can influence settlement offers.

  2. Time saving — Mediation can be scheduled quickly and often resolves the dispute within a few months, in contrast with a court case that can take years. Even out-of-court negotiations can cause long delays in settlement. The quicker resolution offered by mediation helps plaintiffs deal with medical bills, lost wages or other financial difficulties due to their injuries.

  3. Control over outcome — In mediation, both parties retain control over the resolution of the case. Unlike a court judgment, where a judge or jury decides, mediation allows the parties to negotiate a settlement that works for both sides. This control often results in a more satisfactory outcome for the plaintiff.

  4. Non-binding statements — In mediation, the parties’ statements, admissions and offers of settlement do not become part of an official record. If the mediation fails, the discussions remain confidential and cannot be used in court.

  5. Less stress — Litigation can be emotionally draining, particularly for the injured party who needs to focus on recuperation and rehabilitation without having to worry about how it will be paid for. Mediation, which takes place in a more relaxed atmosphere such as an office, offers a constructive forum in which the parties can focus on reaching a practical solution. 

When the process is led by a skilled mediator, the most common outcome is a settlement agreement. It specifies the amount of compensation the defendant will pay in exchange for the plaintiff releasing the defendant from further liability. The settlement can be for a lump sum or for structured payments over time. 

Some issues might be resolved in mediation while others remain contested. The parties may agree on the facts but dispute some of the damages. A partial settlement can narrow the scope of a trial if one is needed. If there is an impasse on all issues, the parties can pursue litigation. Even in this scenario, the mediation process can help parties better understand each other’s positions.

Quinn & Kronlund, LLP in Stockton, California has deep experience as a provider of alternative dispute resolution, including arbitration, in a wide range of legal matters. Feel free to contact us online or call 209-943-3950 to learn more about the services we offer.