Cybersettle, which allows for the negotiation of settlements over the Internet, has signed a new three-year contract with New York City, expanding the types of cases that may be submitted to its system. The new eligible cases include medical malpractice and subrogation claims.

Since 2004, the city has used Cybersettle to attempt to resolve auto accident, sidewalk and other personal injury claims. Under Cybersettle’s format, the city and its adversaries submit offers and demands confidentially over the Internet, and whenever an offer exceeds the demand a settlement is reached, with the plaintiff getting a bonus of half the difference between its demand and the city’s higher offer. If the city’s offer does not meet the plaintiff’s demand, the two sides have the option of going to another round of bidding.

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