Shuttered courts led to increase in settlements


Court closings forced by the COVID-19 pandemic indirectly impacted some insurance claims disputes by eliminating an important path to resolution, lawyers say.

With courts unable to open due to state restrictions, binding arbitration has become a more compulsory way to resolve disputes, said Robert Blasio, general manager of Gallagher Bassett Specialty, who is a trained attorney.

"It got us thinking of alternative ways" to resolve cases and disputes, he said.

Binding arbitration, often conducted over video, provided a "safe and convenient environment and enabled the case to be resolved," he said. While not all clients were open to arbitration, "we had many scenarios in which to resolve cases".

Especially in the early days of the pandemic, there was "a lot of rush to resolve cases" due to the uncertainty caused by lack of access to justice, said Patrick Kennell, co-chair of insurance coverage in New York and litigation practice at Kaufman law firm Dolowich & Voluck LLP. "The appetite of the defendants and plaintiffs to resolve them was really great," he said.

Court closings "have definitely changed the way both sides have handled mediation and alternative dispute settlement negotiations, based on the belief that more limited access to the courts should be used to do business," Kennell said.

The court's closure also eliminated a negotiation chip for plaintiffs, said Joseph Miele, an insurance coverage partner at Kaufman Dolowich in Fort Lauderdale, Florida. "The fact that courthouses are closed and a plaintiff cannot pressurize me with an upcoming lawsuit affects the defense, in this case the insurers," he said.

The reliance on technology and remote connectivity that comes from the pandemic restrictions has also exposed deficiencies in the courts' abilities.

"Even the most technologically advanced dishes have learned they have a lot to learn," said Kennell.


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https://businessservicesnews.ca/shuttered-courts-led-to-increase-in-settlements/

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