When trying to settle your personal injury matter, you may find yourself facing the arbitration process. Many insurance contracts actually require you to do arbitration in lieu of going to court, and many individuals do not have any clue what it is and what it entails.
We have asked attorney, Alaina Sullivan, about arbitration and how it could affect an auto accident personal injury case.
Here is how she addressed the matter:
What is Arbitration?
Arbitration is a form of alternative dispute resolution. Like mediation, it is a more informal proceeding, as compared to court, and anything you say is confidential and protected.
However, unlike mediation, arbitration is set up a bit more like an evidentiary proceeding. Each side presents evidence to the arbitrator who makes a decision and that is binding on both parties.
Pros of Arbitration
Financially speaking, arbitration is cheaper. Is it inexpensive? No. However, does it cost as much as litigation? No. You will pay for an arbitrator, which normally costs between $3,000 to $5,000. If you have an attorney, you will pay for the costs of that person, as well, but consider the costs of preparing for trial, days of litigating, and you have tens of thousands of dollars in legal fees.
Arbitration is easily the most cost-effective solution out of the two options.
Arbitration is a faster process in comparison to litigation. Going through the trial process can take months if not years to get through, and that is only the trial court process. If your case goes through multiple appeals, you can add a couple more years on top of that.
By going through arbitration, you can get to the end result in a much more stream-lined fashion.
Arbitration can also be a flexible process. You can get through the overcrowded calendaring process you face in the court system. You can get an arbitration date set quickly, and have a settlement, relatively speaking.
The proceedings are also private, and any statements made in arbitration, just like in mediation, are confidential.
This protection is not there for court proceedings where all statements are technically in public record.
Cons of Arbitration
However, like so many things in life, arbitration has its cons. It is important you are aware of these negative aspects as well to make the right choice for you.
Arbitration decisions are final and binding. It can be hard to appeal them or get them removed. You have to trust in the process and believe that it will end in your favor.
However, if that is not the case, you are going to be extremely limited in recourse. You will be barred from pursuing it in court, which is part of the agreement you sign prior to arbitration beginning.
Depending on where you are, small town or not, objectivity can be a question when it comes to choosing an arbitrator.
Normally you receive a list of three names and each side gets the chance to strike a name. However, if you are in an area where the other side is more familiar with the people on the list, you may find yourself questioning the objectivity of the “neutral party.”
You should not be skeptical necessarily, but if the panel of arbitrators happen to practice regularly in the personal injury area, and the other side is an insurance company who regularly has these types of arbitrations, a small level of bias may or may not exist.
Contact an Attorney Today
If you have been involved in a car accident and may be looking at arbitration, you should first speak with an attorney to discuss your case. A licensed personal injury attorney will be able to evaluate your case and determine if you have a claim against the other party’s insurance company as well as explain the process of pursuing a personal injury claim.
To receive the compensation for your medical bills, property damages, and pain and suffering, you should speak with a personal injury attorney in your area today.
