Tort - Acts or omissions that intefere wiht somebody's freedom to enjoy their personal or property rights. Negligence - The failure to use reasonable care. In these cases, neither party can make a claim against the other. Litigation - Process of filing a lawsuit and going to court. Arbitration - A hearing which is held, generally less formal than a trial, where the parties have an independent person, called the Arbitrator, decide the case after evidence is presented.
Arbitration can be binding, or non-binding.
A decision by the Arbitrator for an amount more than the high limit will result in the claimant being paid only the high limit. Contrarily, an award for less than the low limit results in the claimant getting the previously agreed low limit. Mediation - A settlement tool similar to Arbitration, but generally not involving testimony or evidence. A Mediator attempts to help the parties settle the case through negotiation. Legal Terms when you go to court.