Insurers may offer to pay the mediator's fees in advance.
Who pays the mediator’s fees in a personal injury mediation? The simple answer is whoever the contract says should pay. The contract is formed by the mediation agreement and the mediator’s terms and conditions. The usual case is that both sides agree to pay half of the fee in advance of the mediation. This can be varied by any agreement reached at the mediation itself. So if the claim is settled the defendant in all probabilty will agree to pay the costs including the claimant’s half of the fee.
I delivered a training session to a firm of personal injury claimant lawyers recently. One of the solicitors said an insurer had recently offered to go to mediation on two cases and in both instances had offered to pay the whole fee up front. He was very suspicious of the insurer’s motives. Actually I mediated a case last week where this happened. Insurer’s recognise the benefits of mediation but also acknowledge that finding £575 plus VAT to pay half the fee can be a disincentive for some claimants and they would rather pay it themselves and have the mediation proceed – in all likelihood they will be paying all of the fee eventually so it makes perfect sense.
This is the first post of the year so I wish all my readers a prosperous year. If you haven’t already done so do sign up for my monthly mediation newsletter and pass it on to any colleagues who may be interested.
If you still haven’t been involved in a mediation and want to try it out then give me a bell and we can chat generally about suitable cases and I may be able to help find a mediator in your area. Your new year resolutions have statistically already been abandoned so try a new one – mediate your first case this year. Best wishes.
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