A “standard” mediation involves a party who feels aggrieved (the plaintiff) and the alleged culprit (the defendant). When an insurance policy may be responsible for paying all or part of a settlement, a third party needs to be at the mediation—the claims representative. This third party has no personal or emotional stake in the outcome. She may know little about the case or even why she was chosen to attend. It is strictly a business.
A plaintiff views the insurance company as a huge pot of gold with limitless resources. The defendant views the insurance company as the entity that should pay and get him out of this mess, allowing him to go about his business. The insurance company understands that at the end of the day, it will need to pay; however it is a “numbers game” for them, i.e.,, how much is it going to cost in fees to continue the litigation as opposed to how much the settlement will cost.
Before the Mediation
