Insurance Disputes

Insurance disputes tend to escalate quickly and force everyone involved into a heated courtroom battle. Luckily there is a better option. Mediation offers a path to reaching a mutually beneficial resolution fair for both parties.

In mediation, a third-party neutral mediator facilitates conversation between the two sides. They can explore all possible outcomes – not just those available via litigation – and reach a resolution crafted for their case. Mediation is less time-consuming, less expensive, and less frustrating than other dispute resolution methods.

Not only does mediation cost less and take less time, but it also allows for the matter to remain confidential. Parties can speak openly and honestly about the issue without concern for information becoming a matter of public record or setting a precedent for other cases. That is often enough to open the door to meaningful negotiations that result in a mutually beneficial outcome for all involved in the matter.

Below are the most frequently asked questions related to insurance disputes mediation:

1. What is Insurance?

Insurance is a contract allowing the individual to receive financial compensation from an insurance company in case predefined risks occur. Insurance protects business owners, renters, car owners, and regular citizens from damages resulting from everyday incidents and unforeseen events.

2. What are Insurance Policies?

An insurance policy is a document representing insurance. There is a wide variety of insurance policies, covering policyholders from risks occurring in various fields of life. Car insurance protects car owners from liability for damages that result from car use. Homeowner insurance covers homeowners in case their home sufferers damage from fires, floods, and other natural disasters. With life insurance, policyholders can enjoy peace of mind knowing their family members are financially secure in case of death. Health insurance provides policyholders with different packages of services, protecting them from health risks. General liability insurance protects businesses against claims coming from customers. Workers’ compensation coverage ensures workers receive financial compensation in case of injuries at the workplace.

3. How Does the Insurance Dispute Arise?

Insurance disputes result from disagreements between an insurance company and a policyholder regarding reimbursement. An insurance carrier denying or delaying a compensation claim without legal explanation is a cause of an insurance dispute. Sometimes carriers deny compensation claims because the policy does not cover specific risk or the policyholder behaved contrary to the terms of the policy.

4. Who Are the Parties to the Insurance Dispute?

In general, the parties to the insurance dispute are the policyholder and an insurance company. Depending on who claims compensation, there are two types of insurance disputes. Third-party claims occur when a third party seeks compensation from a policyholder who caused the damages. First-party claims are traditional insurance disputes in which the insured (the policyholder) seeks reimbursement from an insurance carrier when a protected risk occurs.

5. Is Litigation an Effective Way of Resolving Insurance Disputes?

Litigation is a time-consuming and financially draining process that is ineffective for resolving insurance disputes. The litigation consists of multiple strictly divided phases (discovery, deposition, opening statements, witness examination, closing arguments), each carrying additional costs for attorneys and court filing fees. The court process brings undue publicity, often harming business reputation. Finally, judges lack specific knowledge and experience in insurance matters, contributing to the overall inefficiency of the process.

6. Who Can Be a Mediator?

A certified mediator is a trained individual who has met the rigorous standards set by the Florida Supreme Court.  

7. Do Parties Choose the Mediator Voluntarily?

Yes. The parties choose a mediator voluntarily by signing an agreement to mediate. However, many insurance companies include specific mediators in their insurance policies, so policyholders do not have a word in the choice of the mediator.

8. How Does the Mediation Process Look?

The mediator first introduces themselves, giving their credentials and explaining the procedure to the parties. After that, the parties separate into different session rooms for private conversations with the mediator (caucuses). The mediator talks to the parties privately, going back and forth between rooms. They cannot reveal what the other party shares unless authorized. In the joint session, the parties gather to discuss the disputed matter and bring offers and counteroffers. The mediator facilitates the negotiations, motivating the parties to settle the dispute. They cannot propose solutions or resolve the conflict by issuing a binding decision.

9. Why is Confidentiality of Mediation Important?

Insurance disputes often involve discussing sensitive business issues. Undue publicity can harm businesses and reveal business secrets. For that reason, the confidential nature of mediation ensures nothing shared during mediation sessions can ever become publicly accessible. The confidentiality extends to future litigation. If negotiations fail, parties cannot use shared information in the discovery procedure.

10.  Is Mediation Agreement Enforceable?

Yes. When both parties sign the agreement settling the dispute, it is enforceable in court as a binding contract.

Reach Out

If you are involved in an insurance dispute and want to avoid litigation, Lawrence Gordon can help. Lawrence knows that the courtroom is rarely the best place to resolve a legal dispute. His forty years of experience negotiating settlements allow him to help you resolve pending conflicts involving issues such as personal injuries and other insurance disputes efficiently and effectively.

For more information or to schedule a consultation with Lawrence, contact him at 561-655-4065 or email him at [email protected].

Landlord-Tenant Disputes FAQs

1. What Law Governs Landlord-Tenant Relationships in Florida?

The Florida Residential Landlord Tenant Act (Florida Statutes at Part II, Chapter 83) governs landlord-tenant relationships in Florida, regulating their mutual rights and responsibilities. The Act prevails over the lease (oral or written), meaning that parties must ultimately comply with the law, regardless of the rental agreement.

2. What Is a Lease?

A lease is a rental agreement in which a landlord agrees to rent a property while a tenant agrees to pay the rent. The lease deals with the mutual rights and obligations of each party. In Florida, rental agreements can be oral, meaning the law does not require a specific form. There is an exception – the landlord’s eviction notices must be in writing to produce the legal effect.

3. What Is a Landlord?

A landlord is an owner of the property, renting residential buildings or commercial premises, allowing other people (or companies) to live or do business using property they do not own.

4. What Are Landlord’s Rights And Responsibilities?

Landlords have the following responsibilities:

• Complying with all applicable housing, building, and health rules and regulations;
• Maintaining foundations, floors, walls, doors, windows, steps, roofs, and other structural parts in a condition suitable for regular use;
• Maintaining and replacing window screens regularly;
• Maintaining and repairing plumbing installations regularly;
• Organizing extermination services for pests, rats, mice, etc., with a 7-day prior notice;
• Providing garbage removal services;
• Maintaining and repairing heat facilities;
• Enabling access to running and hot water and certified smoke detectors;

On the other hand, the landlord has the right to receive the rent (the money tenants pay for using the property). They can also require paying a security deposit – the money tenants give in advance, guaranteeing they will pay the rent on time and avoid causing damages. The security deposit stays in the landlord’s account until the tenant vacates the property. The law does not recognize the maximum amount landlord can charge for a security deposit.

5. What Is a Tenant?

A tenant is a person using the landlord’s property (alone or with their family) for living.

6. What Rights and Obligations Does a Tenant Have?

Under Florida law, tenants have the right to possess the property peacefully. The landlord must respect the tenant’s privacy, entering a residence only to inspect the premises or make essential repairs – but with prior reasonable notice. In emergencies, the landlord can enter the premises without notice.

Tenants must pay the rent on time – otherwise, the landlord can initiate the eviction by serving a written notice within a reasonable time. The landlord has to state the reason for the termination of the rental agreement in the eviction notice.

7. How Do Landlord-Tenant Disputes Arise?

Disputes between landlords and tenants typically arise due to breaches of the rental agreements. Failure to pay the rent on time is a lease violation leading to a dispute. Similarly, causing damages to the property also constitutes a breach giving rise to a conflict. On the other hand, the landlord violates the lease in case of a wrongful eviction or failing to serve eviction notice within a reasonable time. In addition, an unlawful entry, failure to perform necessary repairs, or violation of building, housing, and health codes is a breach that results in a dispute.

8. How Are Landlord-Tenant Disputes Resolved?

The parties can resolve the dispute by filing a lawsuit and initiating the litigation – a costly and time-consuming process. For that reason, the disputed parties often resolve conflicts using alternative methods, such as mediation.

9. What Is a Landlord-Tenant Mediation?

Mediation is an out-of-court method for resolving landlord-tenant disputes, involving a neutral third person facilitating negotiations between the parties without issuing a decision, suggesting solutions, or giving legal advice. The mediator creates a neutral, amicable atmosphere in which the parties negotiate and settle the disagreements.

10. What Are the Stages of Landlord-Tenant Mediation?

The typical mediation process consists of four stages: introduction, opening statements, and private and joint sessions. The mediator introduces themselves and presents their credentials. The parties then go to a separate room for talks (the so-called caucuses) with the mediator, who goes back and forth between the parties assessing their arguments. In the end, the parties gather in a joint session to negotiate their differences settling the dispute.

11. Is Mediation Agreement Enforceable?

Yes. A signed mediation agreement is enforceable as a court judgment.