Strategic Mediator Archives - Florida Mediation Group

How Does Class Action Insurance Work?

In cases where a defendant is concerned about the financial impact of a settlement, accounting implications, or the risk going forward, we recommend engaging a specialty risk consulting firm to assist in providing a quantitative and qualitative analysis of the settlement risk, and to help structure a settlement underwritten by insurance. Most importantly, this provides a mechanism to achieve a full risk transfer of the liability through the use of a specialty insurance product. Often, a claims-made settlement structure, acceptable to class counsel and the court, is negotiated. The insurance company issues the appropriate policy with limits adequate to fund it at a substantially lower total cost than a common fund.

What’s New and Promising in Class-Action Mediation?

Basic goals in any class action include reaching broad relief for the class and finality for the defendant. The relief must be fairly noticed, claim-available and fair in relation to the multiplicity of claimants. One newly created instrument for affordable compensation is the implementation of class action insurance. This has been very effective for our clients, and consists of a post lawsuit settlement insurance product designed to provide protection against the risk and uncertainty of class action settlements in exchange for a negotiated premium. In these matters, cases fail to settle because defendants fear the exposure, risk and uncertainty of a large claims-made settlement. With class action settlement insurance, settling companies can mitigate the financial burden and uncertainty caused by a large settlement with unpredictable claims.

Mediators’ Partnership with UF ADR Team Builds Mentorship, Friendship and Service

The University of Florida ADR (Alternative Dispute Resolution) team competes in about five intercollegiate competitions annually. Closely coordinated with the American Bar Association, many of these meets take place in conjunction with the national convention as well as Section meetings throughout the year. UF will host an intercollegiate meet in February, and our firm members will be very active in a coaching and mentoring role as that approaches. For us, this is a fulfilling opportunity for participation and service to the college and its students.

Florida Mediator Advises, Work Hard, Play Hard

Few will disagree that the practice of law is a stressful profession with myriad challenges, ranging from attracting enough business and overseeing operations to dealing with clients, opposing counsel and judges who can drive one to the edge of despair. Finding a countervailing balance in life also is a challenge. I thoroughly enjoy my practice and cannot imagine doing anything else. Nevertheless, to retain one’s sanity, there has to be a release. Mine is international travel.

Florida Mediator Asks, ‘Can We Talk?’

Sometimes, in the business world, mediation presents another invaluable opportunity – the chance for the respective decision-makers to talk directly to one another under the shroud of mediation confidentiality and privilege.
Provided the parties have their emotions in check, I will sometimes ask the principals of corporate parties to meet privately, while I serve primarily as a “fly on the wall”.