Alternative Dispute Resolution Information: What to Expect in Small Claims Court, Mediation and Arbitration...

In addition to civil litigation, this page gives alternative dispute resolution information for what to do if you can't reach a settlement agreement.

We'll discuss small claims court, arbitration, and mediation. (Don't forget that a formal lawsuit is also an option.) There are different things to expect in each of these processes, so it's a good idea to get as much alternative dispute resolution information as possible.

Small Claims Court Info...

In small claims court you'll face a judge but not a jury. The rules will be incredibly simple and most of the formalities you see on television courtroom dramas won't apply. In fact, it's so simple that some states' small claims court procedures don't even allow lawyers into the courtroom. It's a place where the common person can represent themselves.

Your case will take no more than ten to twenty minutes. It will likely consist of a statement from you, a statement from the defendant, and a few questions from the judge. If you've ever seen a reality courtroom show, then you've seen what goes on in small claims court. With that said, in real life judges are usually more friendly.

Define Mediation...

Mediation is a step that can sometimes be costly - up to several hundred dollars per hour. The goal is to help both sides settle a dispute. Normally this isn't a forum where issues of money are resolved, but that can happen.

In most cases, you'll seek mediation to resolve issues like liability. For example, you and the adjuster can't agree on who's more liable and to what degree, and on how to interpret the relevant laws.

However, many adjusters are still unfamiliar with the process of mediation and are unwilling to use it. If your case does go to mediation, there shouldn't be a lot of surprises.

For the most part it will resemble the negotiations you've already completed. Both of you will state your case and the mediator will keep things civil and well explained. It's their job to guide you through the process.

Definition of Arbitration...

Here is some alternative dispute resolution information about arbitration, another option to help reach a settlement. Either side can initiate this step. It involves a hearing that's similar to a formal suit, but doesn't have a judge or any monetary limits.

You're entitled to have the hearing take place in your county rather than traveling to a place more convenient for the insurer. The hearing can last up to two hours (much longer than small claims court) and the arbitrator will probably ask to examine the entire case. You will be asked for all your documentation.

You're allowed to make an opening statement, as is the insurer. From there the arbitration goes through your arguments step by step.

Unlike small claims court the decision won't come right away. You'll have to wait up to a month to hear back. Unlike mediation, however, there's a final decision made that both sides have to accept, whatever that decision is.