Once your case has been settled through arbitration, you may discover that the damages you agreed to do not cover the true extent of your injuries. You may have been unaware of these damages or unsure of whether you could request them during arbitration.
Regardless of your reason, are you able to claim them now, once arbitration has been completed? We have asked attorney, Alaina Sullivan, about what you should do. Here is what she had to say:
What Is Arbitration?
Arbitration, like mediation, is an alternative form of dispute resolution. However, unlike mediation, arbitration has a more formal structure. Like mediation, parties select a third party to help resolve their dispute, but, in arbitration, the third party’s ruling is final. Think of arbitration as somewhere between mediation and a court hearing.
Parties will select an arbitrator or panel of arbitrators who will hear both sides of the story and make a decision on the case. It is not as formal as a court case and does not require parties to follow formal rules of procedure or evidence, but, like a court hearing, each party is given a chance to present his or her side of the story.
Parties often prefer arbitration because it is quicker and cheaper than litigation, and the decision of the arbitrator is final and enforceable.
Arbitration Clause in Insurance Policies
Many car insurance policies have mandatory arbitration clauses. Arbitration can be used for many purposes. Some policies have an appraisal clause stating that, in the event that the two parties cannot agree on the appraised value of the damages claim, both parties will submit independent appraisals to a third, neutral appraiser who will review both claims and make a ruling on what the damages will be.
Also, car insurance policies will often have a clause stating that they agree to enter into arbitration if the two parties cannot come to an agreement on the claim amount. Unlike the first example, arbitration is more than just submitting paperwork for review to an arbitrator.
Rather, each party will get to present his or her “case” in explaining why the claim should be a certain amount. If your insurance policy has an arbitration clause, keep in mind that you do have to follow what you signed. In fact, your policy is essentially a contract that must be followed. This provision does not mean you have to do it without representation, however.
Hiring an Attorney for Arbitration
Arbitration is an informal means of resolving a dispute, but it still has legal consequences. It is for this reason that you should contact an attorney before you proceed to arbitration. Many attorneys will consult with you for free and review your claim, as well as your insurance policies.
If you have specific questions about arbitration, he or she will be able to answer those at that point. You may find that you need to hire an attorney to attend arbitration with you. Bringing counsel to the table does not mean you will not cooperate. Rather, it just protects your case and your rights.
After all, it is very likely that your insurance company will have their own attorneys present during arbitration.
Binding Decision
The decision of the arbitrator is binding. What does this mean? It means it is final and cannot be appealed. It is for this reason that it is extremely important that you present your entire case and are aware of the full extent of your damages.
Do not leave anything out because you will not be able to add anything later once all is said and done. Therefore, you will not be able to add additional damages following arbitration, specifically against the other party in arbitration.
Pursuing a Third Party
Your only other option at this point would be to pursue damages against any other party involved in the case. For instance, if another driver was involved or there was a defect found to be partially responsible, you could pursue that party.
Arbitration only binds the parties who were a part of the settlement process. Entering arbitration and coming to an agreement with the other party does not prevent you from seeking payment elsewhere.
Contact an Attorney Today
If you have been involved in a car accident and are heading to arbitration or have been through arbitration and have questions about your rights, it is always recommended you contact an attorney today to discuss your case if you do not currently have a lawyer or have any questions.
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. 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.
