Is Alternative Dispute Resolution Common in Personal Injury Cases?

A personal injury case is a legal endeavor where the injured party (plaintiff) brings a claim against an accused party (defendant) for carelessly or recklessly causing the injury. During this type of legal matter in Colorado, various proceedings may be used to resolve the legal dispute. One of the most common methods is alternative dispute resolution, or ADR.

What Is Alternative Dispute Resolution?

Alternative dispute resolution refers to one or a series of out-of-court meetings between a plaintiff and defendant to achieve an agreed-upon resolution to end the legal dispute. The goal of ADR is to reach an amicable settlement agreement between both parties to prevent the case from proceeding to trial, where a judge or jury will determine the outcome instead. Our personal injury attorney in Denver is familiar with ADR as a means of litigation.

Types of ADR

There are two common types of alternative dispute resolution methods in Colorado personal injury cases. The first is mediation, where the parties meet before an unbiased third party known as the mediator. The mediator can assist with conflict resolution and settlement negotiations, but will not have the power to make any binding decisions. At the end of mediation, either party can choose to agree to the settlement or continue to the next legal process.

The second type of ADR is arbitration. Arbitration is more formal than mediation and can result in a legally enforceable decision, if both parties agree to legally binding arbitration ahead of time. In some cases, an insurance policy may make arbitration mandatory before the case will be allowed to proceed to trial.

Why ADR Is Popular in Personal Injury Cases

Alternative dispute resolution is a popular substitute for a traditional personal injury trial in Colorado. It is often at least attempted before a case goes to court, as ADR presents many benefits that make it more desirable than a full-blown court case.

The benefits of ADR include:

• Time efficiency: arbitration and mediation are typically faster than a court trial, as the parties do not have to wait for an open court date. It is less formal and can lead to a resolution much faster than a trial, which will involve discovery and complex court processes.
• Cost-effectiveness: ADR is cheaper than a trial in Colorado, with much lower legal fees and court costs. Saving time with ADR can save money, as key participants such as expert witnesses typically charge by the hour.
• Privacy: unlike a court trial, which automatically becomes part of public record in Colorado, alternative dispute resolution remains private and confidential. This can be beneficial in sensitive or high-profile disputes.

Another advantage of ADR is that both parties remain in control over the outcome of the case. It is up to the plaintiff and defendant whether to accept the terms created during ADR or not. A trial, on the other hand, will result in a binding decision that is outside of the control of either party involved.

Is Alternative Dispute Resolution Right for You?

In Colorado, the courts often require or encourage mediation before allowing a personal injury case to go to trial. Whether or not ADR is right for you depends on the circumstances of your case, such as if compromise and communication are possible with the defendant.

In general, if liability is clear but the value of the claim is being disputed, ADR is a good alternative to a court trial. If there is a liability dispute, complex legal issues or the insurance company is acting in bad faith, however, the case may have to proceed to court.

Speak to a knowledgeable personal injury lawyer in Denver about your case for more details regarding ADR. A lawyer can help you determine if it is right for your specific case, as well as represent you both in and out of the courtroom. Contact Fang Accident Lawyers today to schedule a free consultation.