Arbitration provides disputing parties with one type of Alternative Dispute Resolution (ADR). The arbitrator takes on the function of a judge. He or she hears the evidence and makes a decision.
Details on the arbitrator’s role
All arbitrators get provided their position following an agreement made by both parties. That agreement has focused on the person to select as an arbitrator.
The arbitrator’s decision indicates his or her view on 2 issues.
—The issue of whether or not the victim deserves to be compensated for the claimed losses
—The issue that concerns the amount of money that the defendant owes to the victim.
Varied backgrounds for arbitrators
Some of them are retired judges.
Some are experienced lawyers.
Sometimes the disputing sides accept a recommendation from a group that shares information about different arbitrators
Benefits linked to use of arbitration
It saves both parties money: They must pay an arbitration fee and share the cost for hiring an arbitrator
It eliminates the need for the opposing sides to meet in a courtroom.
Why an accident victim might hesitate before agreeing to abide by an arbitrator’s decision
That decision is final; it cannot be appealed. No testimony from an expert allowed. The final decision must be based on evidence, such as the medical report.
Sometimes the insurance company insists on the victim’s willingness to follow the rules that are linked to a high-low agreement.
Victims that chose to abide by the terms of a high-low agreement get to state the size of the lowest acceptable award, as well as the maximum size for the high-end award.
A victim’s acceptance of the agreement’s terms means that he or she should be guaranteed to receive an award of the minimum amount of money, even if the arbitrator has felt that the victim ought to receive a smaller compensation.
By the same token, acceptance of that agreement means that the victim could not receive more than the chosen high-end amount, even if the arbitrator’s decision were to recommend the awarding of a larger amount of money, as per Personal Injury Lawyer in Waterloo.
Victims that choose to go along with the provision/agreement that has been suggested by the insurance company allow for introduction of an additional drawback to the arbitration process. Unlike the litigation process, it gives the insurance company the opportunity to place a cap on the size of the company’s payout.
Of course, it also guarantees payment of a payout that is as large as the low-end figure in the agreement/provision. Victims’ own feelings about the probable outcome, along with a lawyer’s guidance help to determine their decision, regarding the advisability of going along with any of the suggested high-low agreements.