Choosing the Right Lawyer is No ACCIDENT- A Personal Injury Guide - By Jeff Adelman (2025 Edition)

Choosing the Right Lawyer is No Accident
NON-BINDING ARBITRATION
This is another form of alternative dispute resolution (ADR) that can be
ordered by a judge or the parties can voluntarily submit to it. These
procedures are governed by Florida Rule of Civil Procedure 1.820. Just
like a regular arbitration, there is an arbitrator and both sides get to
present arguments. Parties can choose to have witnesses testify, but often
they do not. If they do testify, it is much shorter than if they were
testifying in a trial. It is meant to be informal. Attorneys from both sides
will submit any documents they want the arbitrator to consider to the
arbitrator before the arbitration, or usually within a couple of days of the
meeting. Deadlines for submitting materials should be clearly stated by
the selected arbitrator. Within 10 days of the non-binding arbitration
hearing, the arbitrator must notify the parties of their decision in writing.
Now keep in mind that this is a “non-binding” arbitration, that a standard
arbitration where the arbitrator has the final say on the matter. Any party
can reject the arbitrator’s decision and request a trial if they do so within
20 days of the arbitrator’s filed written decision. If neither party objects
to the arbitrator’s decision, then the decision becomes binding, and the
case is over.
If the arbitrator’s decision is rejected and the case goes to trial, the
consequences are similar to a “proposal for settlement,” that I wrote
about earlier. To keep it simple, let’s use an example of a non-binding
arbitration award of $100,000 for the plaintiff. The award is rejected by
the plaintiff. The jury returns a verdict of $70,000. In theory, the plaintiff
has won the case. But that is less than 75 percent of the $100,000 nonbinding
arbitration award. So now the defendant’s attorney can send a
bill to the plaintiff for all of the hours of time they spent litigating the
case after the subject after the rejection of the $100,000 award. Again, it
is quite similar to a proposal for settlement.
Now let’s go the other way. The defendant rejects the $100,000 nonbinding
arbitration award. The case goes to trial and the jury returns a
verdict for $140,000. That is over 25 percent more than the non-binding
arbitration award. Now it is the defendant that owes attorney’s fees and
costs to the plaintiff.
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Jeff Adelman, B.C.S., Esq.