A Look at What Happens When Personal Injury Cases Reach Arbitration

If you are injured in an auto accident, do not rule out attempting to recover compensation even if you were partially at fault.  If the other driver(s) involved in the accident or any other negligent party is even slightly responsible for the accident, there is a good chance your attorney will be able to obtain financial compensation on your behalf.  Though insurance companies are not in a rush to settle auto accident cases, correspondence displaying an attorney’s “Esq.” (Esquire) on the letterhead will likely force the insurer into action.  Most insurance providers will attempt to settle instead of paying the costs of litigation.  In some instances, cases are referred for arbitration.

Arbitration Basics

Arbitration is considered an alternative dispute resolution process, also referred to as ADR.  This process allows for legal matters to be resolved without heading to trial.  Arbitrators handle these disputes as they are objective, neutral and completely independent.  Oftentimes, retired judges or unbiased attorneys serve as arbitrators.  The arbitrator listens to each side’s argument, considers the evidence and provides a non-binding decision, similar to the manner in which judges make courtroom decisions.

Personal injury cases are sometimes referred to arbitration to avoid the time commitment and cost of a trial.  Arbitration is essential for cases in which damages add to $20,000 or less.  Some judges will refer matters beyond this amount in the hope of reaching a conclusion of claims without having to proceed through a trial.

Some find arbitration comparably enjoyable as it is nowhere near as formal or complicated as traditional court proceedings.  Litigants find it particularly easy to engage in this setting as opposed to traditional courtroom settings as there is no need to consider how a jury will view the case.  The first hearing is coordinated to take place immediately following the case’s discovery phase.  Each side provides written answers to questions known as interrogatories.  The plaintiff’s deposition takes place prior to arbitration.

Arbitration Hearings

The arbitration hearing does not take place until both parties exchange what is referred to as a statement of issues.  Attorneys for each party are present during this exchange.  The arbitrator completes the hearing while both parties present their cases. The hearing is typically held in a conference room rather than a courtroom.  Once the hearing is complete, the arbitrator provides a non-binding decision centered on the party at fault.  The arbitrator then presents a written award that details the financial damages to be paid by the party in the wrong.

If you do not agree with the award determined by the arbitrator, you have upwards of 30 days to formally reject it.  This rejection requires the filing of a notice with the court referred to as the demand for a trial “de novo”.  This means a formal trial has been requested.  The parties determine the arbitrator fee, split the cost down the middle and hopefully walk away feeling justice has been served.’

As you can imagine, New Jersey laws can be extremely complicated. For this reason, hiring a skilled personal injury attorney is key when seeking any type of monetary compensation for injuries or damages suffered. Contact Richard Schibell today to help you with your case.

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