Alternative Dispute Resolution – Offers, JSMs and Mediation
In recent years there has been a big push from the judiciary for parties to try to settle cases as much as possible without going to court.
Levenes Solicitors have always been keen to try to achieve settlements for clients as quickly as possible. There can be risks of taking a case to Trial (the risk of losing, or the risk of being liable for costs) which can be avoided if a settlement can be agreed out of court.
Settling out of court is cheaper, quicker and removes uncertainty. By agreeing a settlement, the parties take away the chance that a court will not see the case quite the same way that they might have been hoping. Anyone experienced in this field has seen cases go better or worse than expected and that is normal. If there is a dispute about how an accident happened, a judge can be left to decide what happened and whom to believe. Litigation can be risky for both sides. It is not always possible to predict what the court will decide. In practice, a few cases go to Trial, because as long as each side is realistic about the value and risks in the case, settlement is likely.
There are various ways claims settle: –
Insurers frequently make offers called Part 36 offers which are open for 21 days initially.
Sometimes they or their lawyers will simply ring to discuss a case on a without prejudice basis and make an offer that way.
At other times, insurers or their lawyers will make offers with tight timetables for acceptance, often 14 days, where the offer expires if not accepted in that time scale. These “time bomb” offers are meant to put a Claimant under pressure to settle. When these offers are made, we advise our clients about the offer so that the client can make an informed decision.
When any offer is made, clients should consider carefully whether it is reasonable and weigh up the risks and potential rewards of carrying on with the case to try to get more against the benefit of taking the offer and putting the case to bed.
In cases of more serious injuries, parties often seek to settle the claim at a Joint Settlement Meeting (JSM) or Round Table Meeting.
This involves the legal teams of each side meeting in person (or virtually) in one room and then going back and forth between their respective clients (who sit in another room – real or virtual) to try to get a settlement agreed. This is often, though not always, effective, because it concentrates in to a few hours all the negotiations rather than having those negotiations drag on for weeks and months.
In a JSM, the client does not have direct contact with the other side but stays in a room where confidential discussions can be held about what offers have been made and what offer should be made.
Sometimes those meetings do not result in settlement on the day, but even then, settlement is often concluded a few days later. These meetings were traditionally arranged in counsel’s chambers but since Covid, are often done online using Zoom or Teams.
Occasionally, in the most complex and high value cases, the parties will agree to mediation.
Mediation is a bit like a JSM, except that there is another lawyer, often a very experienced King’s Counsel, who goes between the parties. He or she will privately tell the parties what the strengths and weaknesses of a case are and that can help parties to take a realistic stance. The mediator’s job will be that of “honest broker” to try to help the parties come to a negotiated settlement.
A case usually has to be worth more than £100,000 for a JSM to be worth it as the costs of a meeting with both legal teams present for several hours is not cheap.
However, in lower value cases, solicitors will sometimes have lower key exploratory discussions to see if there is a figure that would work for both sides.
At Levenes Solicitors, we always look at how we can conclude our client’s cases in the best way possible and that will usually mean trying to settle the claim rather than going to court. Of course, as the old saying goes – “It Takes Two to Tango” and if we cannot settle then we prepare for trial.
Accident compensation claims
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