Allocating a Settlement and Mediation Tips and Strategies

June 24, 2016 9:45am

Steven C. Schwartz
Partner
Chaffetz Lindsey LLP

Jeff Kichaven
Principal Mediator
Jeff Kichaven Commercial Mediation

Cassandra S. Franklin
Managing Attorney – Claims Coverage Counsel
Allianz Global Corporate & Specialty

  • Control of underlying claims, including selection of counsel and settlement, with multiple carriers and ROR letters
  • Strategies when negotiating settlements in jurisdictions with unsettled allocation issues, multiple claimants, and concepts unfamiliar to plaintiffs’ counsel and insureds
  • How to allocate a settlement after an insurer or insurers refuse to defend
  • How to allocate a settlement between covered and non-covered defendants — the “larger settlement” approach versus the “relative exposure” approach
  • How to allocate a lump sum settlement between covered and non-covered claims
  • Temporal allocation among carriers on the same risk in settlements
  • How to address voluntary payments outside insurance
  • Navigating disputes over limits or coverage in mediation
  • Unique considerations for mediating allocation among consecutive policy periods, overlapping types of coverage, and/or multiple parties
  • Setting the stage in advance of mediation
  • How to select an effective mediator for allocation