Presuit mediation: a win-win situation for everyone.

• Author: Rice, Jr., Edward J.
• Position: President's Page

SINCE 1992, the International Association of Defense Counsel has promoted the National Presuit Mediation Program. This effort involves the attempt to dispose of multiple claims, even before lawsuits are filed, by providing a method for insurers and corporations to meet with claimants and their attorneys to dispose of claims at an early stage in order to avoid lengthy and expensive litigation.

The Director of the National Presuit Mediation Program is James A. Ready Jr. of Columbus, Ohio, and he has been successful in putting together a summit meeting of representatives of the insurance industry, corporate counsel, the plaintiff's bar, the judiciary, alternate dispute resolution experts, and representatives of the public sector to look at and evaluate the benefits of the program.

At that meeting in Chicago, we were successful in obtaining supportive remarks from President Roberta Cooper Ramo of the American Bar Association. Since that meeting, the Association of Trial Lawyers of America, through its board of directors, has agreed to endorse the program.

Obligation for service

There has been some skepticism on the part of the defense bar as to the value of this program and whether it is appropriate for the International Association of Defense Counsel to be a primary sponsor. As lawyers, it is our obligation to render a service to our clients as well as to the general public. At the present time, it is certainly less than 10 percent of all claims that actually go into litigation and require the services of an attorney, and only a very small percentage of lawsuits actually go to trial. It is estimated that well less than I percent of suits brought against insurance companies are tried.

A pilot project of the National Presuit Mediation Program initiated in San Antonio, Texas, has been very successful, with almost 90 percent of all mediated claims being disposed of in the system.

During the past five years, this entire program has been financially underwritten by the insurance industry. Not only does the program require insurers continued, even increased, financial support, but it also requires the insurance industry's agreement to participate actively in the program by agreeing to mediation of claims even before lawsuits are filed.

Benefits for all

Presuit mediation offers obvious benefits to claimants as a method of disposing of claims in a timely fashion--and certainly at a reduced cost. Attorneys for claimants also should be happy to...