Mediation is a process of resolving a personal injury claim without going to court. It is not legally binding, meaning either party can walk away in the middle of the process. However, once the injured party and defendant reach an agreement and sign off, that agreement becomes legally binding, like any written contract.
How Does Mediation Work?
Mediation is a completely voluntary and informal method of resolving personal injury disputes. Much like in a regular conflict, a mediator, typically a retired judge or trained attorney, acts as an intermediary between the plaintiff and defendant, facilitating negotiation between both parties until an agreement is reached. This agreement is known as a mediation agreement or settlement agreement. It is a document outlining the settlement terms. Once both parties sign the mediation agreement, it becomes legally binding.
In essence, while the mediation process itself is not legally binding, the signed agreement is.
Think about it this way. Unlike in a court where the judge’s ruling must be obeyed, any party can choose to ignore the mediator’s suggestions during mediation. The mediator is only a facilitator; they do not decide the outcome.
For example, if the injured party feels dissatisfied with the insurance company’s offer or the mediator’s proposals, they can choose to back out and take the case to court.
How is Mediated Settlement Enforced?
The law recognizes settlements that have been reached via mediation. As such, the defendant or their insurance company has a legal duty to pay up. If they fail to do so, they have breached the contract, and the aggrieved party has the right to sue.
In certain instances, the court may not approve a mediated settlement if it appears to be obviously unfair.
What Are the Benefits of Mediation in Personal Injury Cases?
Mediation benefits both the injured party and the defendant in several ways. For starters, it is faster and less expensive than full-blown court litigation.
Also, it prevents the case from going public. Everything discussed during mediation remains confidential. Of course, publicity can affect the reputation of the at-fault party and take an emotional toll on the injured party. These are key reasons why mediation is usually the first course of action.
From what we’ve seen, few cases make it to court, as most people involved in personal injury find mediation a more comfortable and convenient route.
What If Mediation Fails to Reach a Mutually Acceptable Agreement?
Another thing we commonly see play out is insurance companies unwilling to offer a reasonable amount. Of course, these are businesses, and handing over huge amounts in settlements hurts their bottom line. But injured victims also deserve everything they can get to cope with the agony they’ve been plunged into due to the negligence of another party.
This is why some personal injury cases, especially ones involving serious or catastrophic injuries, hit a brick wall during mediation.
If mediation fails to reach a mutually acceptable settlement, the injured party has the option to litigate the case. Having a skilled lawyer experienced in representing personal injury victims in court becomes crucial at this time. Their job is to present the case to the jury to ensure you obtain the maximum compensation you deserve.
Who Should You Have as Your Mediator?
Anyone can mediate, but it’s in your best interest to have a personal injury lawyer in Orlando with strong negotiation skills.
As an injured victim, chances are you’d be dealing with your defendant’s insurance company. From personal experience, many do not act in good faith and will try to lowball you. Without legal representation, you may find yourself accepting a low amount that does not cover the full scope of your medical bills, lost wages, and potential future losses due to the injury.
Injury attorneys are familiar with all of that and will do their best to negotiate what’s best for you.
But even more importantly, having legal hands on deck ensures you do not sign off on something you do not fully understand. Once you’ve signed, the mediated settlement becomes a legally binding contract.
What If You Wish to Void the Contract?
On more than one occasion, we’ve seen plaintiffs who wished to cancel a personal injury mediated agreement. This is known as rescission, the legal term for canceling or voiding a contract. This is only legally acceptable if fraud, duress, mistake, or oversight was involved when signing the document.
For instance, when one party withholds relevant information that could have affected the course of the mediation, and that information eventually comes out after signing, it is valid grounds to void the agreement.
Such cases are hard to prove, though. Bottom line is, one can’t just simply change their mind after signing a mediated settlement.
What It All Comes Down To
Mediation offers many benefits to both plaintiff and defendant. You get to control the outcome and finalize everything behind closed doors without having a jury decide your fate.
However, you must understand that once you sign and the court approves it, you become legally bound. So it’s important you understand what you’re getting yourself into. And the best way to do so is to have a skilled lawyer representing you throughout the process. In the event mediation doesn’t work out, your lawyer can pursue other methods of personal injury dispute resolution or litigate the case, according to what best suits your situation.
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