Subrogation mediation is defined as the subrogated party (the insurer) stepping into the shoes of their insured and the at-fault party or their insurer meeting with a neutral third party to try and resolve the subrogation claim through negotiation. A neutral third-party mediator facilitates discussions to reach a mutually agreeable resolution, which is called a settlement agreement. Unlike litigation, mediation fosters open communication and collaboration, helping parties find solutions that address legal, financial and emotional concerns. Parties control the outcome of the process, and their settlement agreement is enforceable in court, acting as a contract.

• A matter in which a subrogee, on behalf of their insured, claimed that water damage at the insured’s offices resulted from defendant’s negligent failure to properly install and supervise the installation of an icemaker; matter settled

• A matter involving conflicting claims of property damage and liability issues involving the unclear origin of a fire

• A matter involving two subrogation claims relating to two separate fires in different states with the same defendant; alleged spontaneous combustion caused by cooking oil; global settlement achieved for both disputes

Parties to subrogation disputes enjoy various advantages when they mediate their dispute at ADR Systems.

Faster Resolutions: Mediation can resolve disputes in weeks or months rather than years, reducing the time burden on plaintiffs and defendants

Cost Savings: Avoiding lengthy court battles saves money otherwise spent on legal fees, expert witness costs and administrative expenses.

Confidentiality: Unlike public court proceedings, mediation is confidential, protecting reputations and sensitive information.

Reduced Stress: Mediation fosters a collaborative rather than adversarial atmosphere, reducing emotional strain for all involved.

Greater Control: Mediation removes the uncertainty and risk associated with litigation, where outcomes can be all-or-nothing; both parties have a say in the outcome of the case rather than leaving the decision in the hands of a judge or jury.

Preserved Relationships: Open dialogue allows subrogating insurers, their subrogees and defendants to maintain professional relationships and rebuild trust when possible.

Experienced Neutrals: ADR Systems’ panel of mediators consist of retired judges and seasoned attorneys with decades of hands-on knowledge of the disputes before them and an ardent passion for resolving them.

Mediation is a practical solution for many subrogation disputes. It is particularly beneficial when parties seek a resolution that prioritizes confidentiality, expediency and cost-effectiveness.

If you are representing clients involved in a subrogation dispute and want to pursue mediation as an alternative to litigation, explore our Find A Neutral page to review the bios of mediators with experience mediating subrogation disputes.

Submit your subrogation case through our Neutral Availability Form or Contact Form.