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Mediation Agreement Should Address Structured Settlements To Avoid Post Mediation Hiccups

by John Darer® CLU ChFC MSSC RSP CLTC

If your case settles at mediation and there is a wisp of thought of the possibility of a structure, be sure to document the possibility in the mediation agreement.. A lack of attention to detail can cause headaches after a successful day. 

What should be done if my client would benefit from a structured settlement, but we have not yet discussed this option?

1. To minimize your client's transition stress you should help prepare your client to make a significant financial decision by having them speak to a structured settlement expert and/or settlement planner to assess their needs as early as feasibly possible, in advance of mediation.

2. Preserve your clients ability to structure by getting it into the mediation agreement even if the specifics of the structured settlement are still pending.

What are the aspects of settlement that need to be clarified during or prior to mediation if a structure may be included in the settlement?

• What if any restrictions is the defendant's insurer imposing on the plaintiff with respect to the selection of structured annuity issuers?  Whether it's a short list of companies, or a minimum A.M.Best rating of A+ you need to know.  
• What is the anticipated closing date?   Will the defendant or insurer pre-fund the structure? 
• Do you want to structure your fees?  Is the defense OK with that?  For example,  if you have a case with Travelers you can be sure that structured attorney fees are off the table.
• Is there going to be a Structured MSA?

A good structured settlement expert should be able to provide this information to you and help you navigate around the landmines that can happen in a mediation agreement.

 

Image  © Mellimage | Dreamstime.com - Mediation Photo

Settlements, Mediations, Managing Financial Transitions | Transition Stress

by John Darer® CLU ChFC MSSC CeFT® RSP CLTC

Plaintiffs are often asked to make life impacting financial decisions during a period of heightened stress.

Transition stress can impair the decision making process, perhaps even leading to a frozen state, or a combative state, where making a decision seems impossible.

Where does that leave you if you are the plaintiff, the defense or plaintiff lawyer or a mediator, are in the middle of a mediation on a personal injury or wrongful death case, or having settled the personal injury or wrongful death case and trying to wrap things up?  In some cases it may even lead to conflict between plaintiffs and their personal injury lawyers, despite the job the lawyers have done in obtaining a favorable recovery, not to mention the impact on accounts receivable from the resulting delay.

Understanding and managing transition stress should be an important consideration when a case is heading towards a possible settlement, even before settlement discussions begin at mediation or elsewhere.

John Darer is a Certified Financial Transitionist What is A Certified Financial Transitionist? (CeFT) (4structures.com)

John Darer's article Clients Need Help Planning Life Transitions was published in the June 9, 2014 issue of the Connecticut Law Tribune. Download Reprint_John Darer 060914 CT Law Tribune.

Sudden Money advisors have a process and protocols for helping clients navigate their best path. For more information please call me at 888-325-8640.

Read about Settlement Planning What is Settlement Planning? Settlement Advisors and Financial Transitionists NY|NYC|CT|NJ (4structures.com)

Last updated May 18, 2024