When is Mediation Used to Try to Resolve a Claim?
Mediation is often done before a case proceeds to trial. Typically, a lawsuit has already been filed and both sides have been preparing for trial. However, both sides may be required to go through mediation before a trial can begin. Mediation may often happen as a last resort effort to avoid a trial.
Crash victims could request mediation with the insurance company before a lawsuit is filed. However, insurance companies are not required participate. That means mediation will only happen before a lawsuit is filed if both parties agree to it.
There is no point in going through mediation unless the insurance company is going to make a good faith effort to attempt to reach a settlement. Otherwise, mediation is a waste of time and money. If mediation is court-ordered, the insurance company may make a good faith effort to reach a resolution to avoid the time and expense of a trial.
Sometimes mediation is the better option because if you go to court, you will be leaving the case in the hands of a jury. You do not know how a jury is going to rule. In mediation, you know what the outcome will be before making a final decision.