Is My Car Accident Claim Going to Arbitration?

A car accident is a terrifying experience that a person never forgets. Unfortunately, after the initial shock and trauma wear off and car accident victims are recovering from their injuries, the next stage of the process is also distressing as they encounter the legal tangles of recovering compensation for their damages under a fault-based insurance system. Utah’s modified comparison negligence system under Utah §78B-5-818. requires a car accident injury victim to recover compensation from the at-fault party’s insurance. Often, this means an investigation on both sides as an injury victim’s lawyer provides evidence of liability and the insurance company disputes, undervalues, or denies claims. In some cases, arbitration for car accidents in Utah helps to resolve these disputes without court.

How Does Utah’s Modified Comparison Negligence System Impact My Car Accident Claim?

Other than a handful of no-fault insurance states and several pure comparison negligence states, most states use a modified comparison negligence insurance system for car accidents, including Utah.

This system allows injury victims to recover compensation for damages like property damage, medical expenses, lost wages, and pain and suffering from an at-fault party’s insurance company as long as they didn’t contribute to the cause of the accident by more than 50%.

The insurance company subtracts the claimant’s percentage of fault from the payout on their claim. For instance, if another driver ran through a stop sign and hit your car but you were exceeding the speed limit by ten miles per hour, the insurance company could claim that you were 25% at fault and the other driver 75% responsible.

If your damages add up to $100,000 you would recover $75,000 and the other driver wouldn’t be able to make a claim against your insurance because they were more than 50% at fault.

While this system helps accident victims recover damages even if they contributed to an accident, it also incentivizes insurance companies to protect their profits by assigning injury victims an undue percentage of fault.

When Does a Car Accident Case Go to Arbitration in Utah?

When a dispute arises in a car accident case in Utah, such as an insurance company disputing their client’s percentage of fault or undervaluing an injury victim’s claim, they may be unable to reach a settlement agreement during negotiation meetings with the injury victim and their attorney.

In about five percent of car accident claims, the case goes to court for a jury to decide after both sides present their cases. Before a disputed car accident claim goes to trial, both sides may agree to an alternative dispute resolution by taking the matter into arbitration instead of a trial. In arbitration, one person hears the arguments, evidence, and testimony from both sides and makes a binding decision.

What Is the Difference Between Arbitration and a Trial?

A professional arbitrator is similar to a mediator in that their job is to resolve legal disputes, only unlike mediation, in arbitration, both parties agree ahead of time to abide by the arbitrator’s decision as they would a judge.

The arbitration process proceeds very much like a trial, only not as formal, time-consuming, or expensive. Arbitration is often a good way to reach a mutually agreeable settlement outside of court.

It can be favorable in some circumstances since arbitrators are more experienced than jurors who would decide if a case goes to court; however, some attorneys feel that juries are more sympathetic to injury victims and a jury trial may end in a higher award for compensation.

If you’ve suffered injuries in a car accident in Utah, it’s best to discuss the pros and cons of arbitration vs a jury trial in your unique case before deciding. If you need more assistance, contact a Salt Lake City car accident lawyer today.