Subrogation cases can get messy. With multiple parties and costly expert witnesses, these cases can become tedious when sent to trial. But through mediation, subrogation can be a streamlined way to resolve these otherwise messy disputes.
Subrogation arises when a party is paid by their insurance company for damages, but damages can be disputed. Through subrogation, the insurance company may recoup a portion of the money from a third party.
“Subrogation allows the company to collect money it doesn’t normally anticipate,” said Hon. Dennis J. Burke, (Ret.).
There are many types of cases that lend themselves to subrogation. These can include property damage, fire loss, flooding and auto accidents.
By saving time and money, mediation is a quick and efficient way to resolve otherwise complicated subrogation disputes. Mediation is also a cleaner process – without the uncertainty involved in going to trial.
“In a trial, just imagine all the experts you would have to get with a simple fire loss,” said Hon. Joseph N. Casciato, (Ret.). “What was the heating worth, what were the windows worth, how much was the furniture worth and so on. It takes multiple experts to prove your case, and even then, it’s costly and subjective. If you do mediation, expert reports can be included in submissions or can be presented by affidavit. In mediation, the process is simplified and focused on finding common ground and resolving the dispute.”
Subrogation mediation also has other advantages over litigation, particularly when it comes to the settlement amount. It allows parties to negotiate more effectively than if the case went to court.
“It can be all or nothing in a trial,” Judge Burke said. “The money has already been paid out. If you’re responsible, you’re going to pay all of it. If you’re not, you’ll pay nothing. Compared to other cases, there’s usually not a compromise by a jury or judge on that.”
All sources of information on damages, such as contractors, appraisers, employees and experts are helpful in the mediation of a subrogation case. In most cases, there will already have been an investigation into the incident itself by public and private entities, such as fire departments.
Interviewing any ‘expert’ sources you may have and make sure you understand the basics and mechanics of the case. The sooner you can interview your own people and get that information, the better. In subrogation, the resolution is not the event itself but how much was paid, the fairness of the price and what discount is going to be given to get it resolved.
There are many benefits to resolving subrogation cases through mediation, and ADR Systems provides the services to keep your subrogation case on track and get it settled.
To resolve your next subrogation dispute with ADR Systems, click here.
To view availability for Judges Burke and Casciato click here.
Judge Burke has been a senior mediator and arbitrator with ADR Systems since 2012, during which time he has mediated and arbitrated hundreds of commercial and personal injury disputes. He has won acclaim for his settlement skills and is known for his keen ability to build trusting relationships with all parties.
For Judge Burke’s full bio, click here.
Judge Casciato is a senior mediator and arbitrator at ADR Systems. His trademark is his ability to guide even the most recalcitrant parties to settlement. He is well known for his thorough case preparation, positive attitude and pleasant personality.
For Judge Casciato’s full bio, click here.
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