2 min read
Most personal injury and workers' compensation claims in Minnesota settle before anyone sees a courtroom. When a claimant and an insurance company can't agree on a number, the case doesn't automatically head to trial. Alternative dispute resolution, or ADR, gives both sides a faster, cheaper way to resolve the dispute. If your claim is in litigation, there's a good chance you'll go through some form of ADR before the case ends.
Two ADR processes come up most often in Minnesota injury cases: mediation and arbitration. Both put a neutral third party in charge of moving the case toward resolution. That person is almost always an attorney with years of experience in the relevant area of law. A mediator handling a workers' compensation claim, for example, knows the workers' comp system well and uses that knowledge to help both sides reach an agreement.
How Does Mediation Work?
A mediator's job is to talk with everyone involved in a conflict and find common ground both sides can accept. In most mediations, you won't speak directly with the other party — the mediator controls all communication, which keeps the focus on solving the problem rather than on any tension between the parties.
If you file a personal injury lawsuit in Minnesota District Court, you'll need to attempt mediation before your case can go to trial. This step can be costly, so it's worth factoring into your decision about whether to file a lawsuit at all.
Workers' compensation claims don't require mediation, but the Minnesota Department of Labor and Industry offers free mediation services, and many injured workers go through the process anyway.
Mediating a case is often a smart move. It can cut down the time, cost, and stress of taking a case all the way to trial.
How Arbitration Works
In arbitration, a neutral arbitrator (not a judge) decides the outcome of your case. Arbitrators bring the same deep experience as mediators, but instead of helping both sides reach their own agreement, they make the final call themselves.
Arbitration looks a lot like a trial, just less formal. First, both sides exchange the evidence and information relevant to the case. Then they schedule a hearing, often at the arbitrator's office or an attorney's office, where each side asks questions and argues their position to convince the arbitrator to rule in their favor.
Arbitration comes up most often in car accident cases, when a driver and their auto insurer disagree over paying medical bills. Minnesota law requires arbitration when the disputed medical bills total less than $10,000. Since most auto insurers stop paying benefits at some point, many car accident claims end up here.
What This Means for Your Case
Mediation and arbitration are just two of the options available for resolving an injury claim without a trial. Rising legal costs—and the time a trial demands—have made both processes increasingly common, and that's not likely to change.
If your claim is headed toward mediation or arbitration, your attorney should walk you through what to expect at each stage, so there are no surprises along the way.
If you're facing mediation or arbitration for your injury claim and aren't sure what to expect, call 651-493-0426 for a free consultation with the attorneys at Aaron Ferguson Law.
