Mediation, Arbitration and Litigation in Auto Accident Cases
While traffic-related fatalities continue to be on the decline in Pennsylvania, injuries continue to be a serious concern. In fact, in this state, an average of more than 225 injuries resulting from automobile accidents is sustained each day. These events lead to insurance claims, which often require the involvement of an Allentown car accident lawyer in order to ensure that the victim is compensated suitably in auto accident cases.Preparing, Filing and Pursuing a Claim
While you should notify your insurance company of an automobile accident as soon as possible, that is only the start of the claims process. You must calculate the loss, prepare the paperwork and file the claim. Pursuing the claim involves awaiting an offer and either accepting that offer or declining it and moving on to negotiations. It generally behooves you to involve an Allentown car accident lawyer prior to the calculation of loss. Accident victims often underestimate the loss incurred, and insurance companies will often navigate the situation differently when an attorney is involved.Mediation
If the offer was rejected, your lawyer will likely have phone conversations with an attorney from the insurance company to negotiate damages. The framework of that negotiation will be the offer and counteroffer. Unless they are really far apart, both parties will seek a compromise between those two points. If it’s been several days and the conversations are not moving the parties toward an agreement, then the next step may be mediation. This usually involves an informal meeting through which an independent mediator works to help the two parties reach an agreement. The mediator makes no decision during this process.Arbitration
If after negotiation and, possibly, mediation, an agreement cannot be met, arbitration may be an option. Arbitration is a litigation alternative that can save all the parties involved considerable time and money. A nonbinding arbitration is similar to mediation except that the arbitrator makes the decision. However, since it is nonbinding, neither party is bound to that judgment and may move on to the next step. A binding arbitration is legally binding. An arbitrator hears the case, decides and then makes a ruling, and all parties involved have to abide by that judgment legally. Whether arbitration makes sense for any particular accident case involves many factors. Some of the elements the parties have to agree on include:- The arbitrator
- The technical rules
- Who is paying for the arbitration
- Whether the judgment will be binding or nonbinding
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