Strategies for Early Case Resolution in Insurance Defense: Reducing Louisiana Litigation Costs

Disputes in insurance-related cases do not have to proceed to litigation. For many insurance companies and self-insured businesses, it can be beneficial to resolve an insurance case through alternative dispute resolution methods outside of court. Strategies for early resolution can help insurance-related disputes be resolved more efficiently and save money.

Understanding the Basics of Early Dispute Resolution

Early dispute resolution helps avoid the time, cost, and expense of litigation. Alternative dispute resolution is committed to by all parties early in the claims process. The process usually follows these steps:

1. Assessing the claim and the basic issues in dispute;
2. Exchanging documents and information in a discovery process.
3. Determining the risk of the claim, including the cost of potential litigation;
4. Assessing what a realistic settlement would be, and
5. Negotiating with the other party to reach a resolution prior to court

This process is structured and can take time, but it has several benefits compared to litigation, including:

• Saving money on filing fees, expert witness costs, other court costs, and litigation attorney fees
• Saving money by limiting the time spent in court
• Limiting stress and other emotional strain associated with taking a claim to court
• Resolving a claim more privately
• Preventing the final say from being up to the discretion of the court or a jury
• Finding the right solution that benefits all parties

According to U.S. Department of Justice data in 2017, a reported 13,886 work days, 1,967 months of litigation, and  $15,521,275 were saved due to alternative dispute resolution, both voluntary and court-ordered. While alternative dispute resolution methods do have associated costs, they are often much less than taking the case to court.

How Can You Secure an Early Case Resolution?

Many cases are settled prior to litigation through methods like informal negotiations and mediation. Every case is unique, but there are certain strategies that insurers and businesses can use to improve the likelihood of securing an out-of-court resolution. Some important strategies for early dispute resolution for insurance companies include:

1. Gathering your evidence: An early investigation of the claim helps you become informed about what the claim involves, its merits, and how to proceed with the case. This may include discussing with expert witnesses, reviewing medical documentation, looking over social media information, securing the point of view of the insured, and/or talking with the individuals making the claim and other witnesses. The investigative process depends on the specifics of the insurance claim. Gathering evidence and investigating helps you limit surprises throughout the case. Having evidence in advance makes you better prepared to make an early offer to begin early dispute resolution and provide leverage to support negotiations during the dispute-resolution process.
2. Having the right timing: Early dispute resolution needs to be handled early to be effective and cost-efficient. You may be offering a settlement, using specific tools to uncover information in discovery, or beginning the process of mediation or negotiation. It’s important to use these tools at the right time. You want to ensure you have sufficient information prior to negotiation or mediation, or that an offer to settle is made at a beneficial time.
3. Working with an attorney: When you work with an insurance defense attorney in Louisiana, you have access to significant resources and experience in resolving insurance defense cases in and out of court. An attorney reviews the specifics of the insurance dispute, determines how it could be resolved, and considers your company’s wishes. When you want to resolve the case through early dispute resolution, an attorney is essential in helping you do that. Your insurance defense attorney can investigate the cause of the dispute or potential claim, gathering evidence to help you enter negotiations fully prepared. The attorney can also help you review your options for a settlement or negotiation process, depending on the specifics of your case. You can make more informed choices about the case and how it is handled when you work with an experienced insurance defense attorney. An insurance defense attorney will know how to use the law to your advantage and how it can be used against you.

FAQs About Early Case Resolution in Insurance Defense in Louisiana

What Do Insurance Defense Attorneys Do?

Insurance defense attorneys in Louisiana provide legal representation for insurance companies, self-insured corporations, third-party administrators, and insurance policyholders. They represent these entities against legal claims, protecting the insurer and/or its insured against:

• Accident liability defense
• Workers’ compensation claims
• Maritime claims
• Premises liability defense
• Wrongful death
• Survival actions
• Uninsured motorist claims
• Bad-faith insurance claims
• Coverage disputes
• Professional liability
• Product liability
• Excess insurance claims
• Subrogation disputes
• Toxic torts
• Property damage claims

What Is the Most Effective Way to Resolve a Legal Dispute?

The most effective way to resolve a legal dispute in insurance defense will differ depending on your case’s specifics. While early resolution provides several benefits, it is not going to work for every case. Early resolution can help mitigate costs and save time. Proceeding to trial can help protect an insurer’s rights and financial interests when necessary. It’s important to work with a defense attorney who understands how to balance these needs.

Contact Degan, Blanchard & Nash Today

When you need legal support to secure an early settlement resolution, Degan, Blanchard & Nash can help. With 34 years of experience in negotiations and litigation, our team can assess your situation to determine the use and likelihood of obtaining a resolution out of court. We investigate a claim for its legitimacy and evidence and tailor a potential resolution to the case itself.

Our team is very aware of the costs of litigation and how they can impact even large companies. We work to minimize the costs and publicity of trials by resolving disputes quickly. Contact our firm today.