Insurance Settlement Preparation
The best way to prepare for an insurance settlement is to prepare the case for trial. Trying to predict what would probably happen at trial is a great way to gauge the value of an insurance dispute.
I am writing this while flying to New Orleans for a mediation tomorrow morning. This blog post may be removed if the matter settles--so read quickly.
Slabbed is probably going nuts because I am indicating that another case may be resolved confidentially and without public scrutiny. So, to help Slabbed understand a little (there is more) of what we do and provide Dimechimes with some more adjuster training lessons, I am publishing the Reports of the Claims Expert and the CPCU expert in the case.
If this post is not removed, I would appreciate any ideas on this case and would love to share information about AIG and Lexington Insurance Company with those who are having claims problems with them.
Deborah Trotter in our Gulfport office is the primary attorney on this matter. She has flown from one side of the country to the other working on this case. We are on a contingency fee and we report to a receiver in the Bankruptcy Court. The client went into bankruptcy long before we were retained and the Court approved as counsel.
The mediator for the case is Jim Perry. He has an excellent reputation and was the mediator in our Port of New Orleans case. From my one experience with him, he deserves the reputation.
One commentator with personal knowledge about our firm in replying to The Parable of Hurricane Ike Insurance Claims, indicated that our files are "thick" when we go to settlement conferences. Our experience is that most good counsel prepare their cases thoroughly.
However, there is significant debate whether all facts should be used as leverage at a mediation. Even in our law firm, I have seen a strategy that "less is more" at mediation since the lawyers just end up arguing about which case is factually better. As mediation is purely about money, the attorneys following that theory do the trial analysis and simply give a one page summary: pay or go to trial.
I prefer to provide information prior to the mediation and discuss the facts less while there. As indicated in a post last week, our firm is discussing trial technique because we expect that more carriers will try to delay their day of reckoning through trial and appeal as the current economic climate worsens. Still, I have my trusted presentation advisor, Jack Stein of Trial Exhibits, with me because I feel compelled to make a few more points.
Will this case settle? Who knows? If it does, you may be one of the few who will know it existed.
Promise that I won't go nuts if you settle and Sop has always been favorable to settlement; plus, like most CPAs, he has prior commitment to "go crazy" this time every year.
You've made a very compelling case for settlement since we started discussing the issue. As a result, I have a much better understanding of an attorney's position where the opportunity for settlement presents itself and discovered I object to seals more than settlements.
The most important thing I've learned is that settlements vary in quality with the highest quality being those who had not had their case gutted by pre-trial motions and approached settlement full prepared to go to court.
I know you do that.
I also know that settlement without the proper presentation can not be expected to produce satisfactory results and may even prove harmful at the time of settlement or some time in the future.
You know these thoughts represent a significant change in my thinking and considerable time.
I've spent even more time trying to define my continued objection to settlement when a case has the potential to impact public policy, even if the underlying dispute is a matter of private concern.
One option is doing as you've just done and contributing to the common body of knowledge. I'm sure there are others but with you in the air and me on the ground covered in work, we'll have to explore options later.
I do appreciate very much the recognition and attention to my concern.
afterthought: If you haven't had a chance to read the information I posted on a windpool reinsurance case in trial here now, please do. One of the underlying issues seems to be the discount available to those writing policies on the coast was consider and of the $525million the insurers in the windpool had to "pony up" after Katrina, some of the larger companies paid $0 after the credit. The plaintiff insurers took exception for several reasons - the most interesting being these companies were under investigation for not paying claims on those policies. I find it one of the most thought provoking cases since Katrina.
Chip, plz tell Jack hello for me. I take it the case didn't settle or I wouldn't be reading this Monday blog on Tuesday a.m.
I'm aware that MOST of your cases settle @ mediation and those that don't, settle right before trial - and those that don't settle before trial DESERVE to go to trial...."AND JUSTICE FOR ALL..." no matter how it is ultimately attained.
Take care,
SHIRLEY HEFLIN