Why You Might End Up Paying the Other Side's Attorney Fees
Download MP3Key Points Discussed in This Episode:
- Mediation as a tool in litigation disputes, especially regarding damages and settlement offers.
- Understanding potential liabilities tied to rejecting settlement offers during disputes.
- Example Scenario:
- A lawsuit is filed for $100,000 in damages.
- The counterparty offers a $75,000 settlement, which is rejected.
- The case proceeds to trial, and the court awards $80,000 or $90,000.
- Consequences: Attorney fees incurred after rejecting the $75,000 offer may become recoverable by the counterparty or the insurance company.
- Insurance implications:
- Commercial insurance policies may cover defense claims but could be reduced based on incurred attorney fees.
- Fees must be reasonable, with documentation of billings and hourly rates required.
- Mediation advantages:
- Helps avoid hidden costs like attorney fees, even from the opposing party.
- Keeps settlement offers private and confidential when made during mediation.
- Post-mediation considerations:
- Offers made after mediation (via court or attorneys) become formal and must be carefully evaluated to avoid additional liabilities.
- Reminder:
- Always consult with an attorney for legal advice.
- Use mediation strategically to minimize exposure and mitigate costs outside the primary scope of your case.
This episode highlights the importance of mediation in managing legal risks, hidden costs, and preserving financial resources during litigation.
