““Settle or Try?”Settle or Try?”That is the QuestionThat is the Question

Richard A. Spiers CPCU, ARM, AReRichard A. Spiers CPCU, ARM, AReApril 17, 2015April 17, 2015

AgendaAgenda

• Introduction Introduction •WhyWhy•Why NotWhy Not•What If I DoWhat If I Do•What If I Don’tWhat If I Don’t•Making the DecisionMaking the Decision•Possible RamificationsPossible Ramifications

2

Wait, We Did Nothing WrongWait, We Did Nothing Wrong

•Auto LossesAuto Losses•General LiabilityGeneral Liability•Employment MattersEmployment Matters• Zoning and Land UseZoning and Land Use•Sex MolSex Mol•Police MattersPolice Matters

3

FAQs I ReceiveFAQs I Receive

Why Should We Have to Pay???Why Should We Have to Pay???

A Public Apology, For What?A Public Apology, For What?

4

Why Try?Why Try?

Sometimes a Trial is the Only AlternativeSometimes a Trial is the Only Alternative•Large DemandsLarge Demands

•Unclear and Unproven Facts That Sound BadUnclear and Unproven Facts That Sound Bad

•Damages Damages –Larger than Expected orLarger than Expected or–Seemingly Unrelated to the OccurrenceSeemingly Unrelated to the Occurrence

•Uncooperative Showboating AttorneysUncooperative Showboating Attorneys

5

Why Not Try?Why Not Try?

•Economic ReasonsEconomic Reasons•Negative Publicity PotentialNegative Publicity Potential•Surrounding IssuesSurrounding Issues

6

Important Issues to ConsiderImportant Issues to Consider

• Your Reputation Your Reputation • Plaintiff Attorney’s ReputationPlaintiff Attorney’s Reputation• The Venue – State and Federal The Venue – State and Federal • Immunities and Tort CapsImmunities and Tort Caps• Cost of Defense Through Trial – Get a BudgetCost of Defense Through Trial – Get a Budget• Verdict Potential – Check for Prior Similar Trial OutcomesVerdict Potential – Check for Prior Similar Trial Outcomes• Emotional AspectsEmotional Aspects• Local and National News Local and National News

7

Your ReputationYour Reputation

•Publicity Surrounding Initial OccurrencePublicity Surrounding Initial Occurrence•Previous Similar SituationsPrevious Similar Situations•PoliticsPolitics•Overall EconomicsOverall Economics

8

Plaintiff Attorney’s ReputationPlaintiff Attorney’s Reputation

•Well-Known Plaintiff Attorney Can Raise Well-Known Plaintiff Attorney Can Raise Value of the CaseValue of the Case• TV Commercials – Public Knows Them TV Commercials – Public Knows Them •Highly Publicized Large VerdictsHighly Publicized Large Verdicts

9

State or Federal VenueState or Federal Venue

• Jurisdictional Hell HolesJurisdictional Hell Holes•State LawsState Laws• Federal AspectsFederal Aspects–Attorney FeesAttorney Fees–Jury poolJury pool

10

Will Immunities and Tort Caps Apply?Will Immunities and Tort Caps Apply?

•On PaperOn Paper–They ShouldThey Should• In RealityIn Reality–They May NotThey May Not•WaiversWaivers–Think About How Others Will See Your Think About How Others Will See Your BehaviorBehavior

11

Verdict PotentialVerdict Potential

• Anything Can HappenAnything Can Happen• VenueVenue• Potential Length of TrialPotential Length of Trial• Jury of Your Peers?Jury of Your Peers?–Is Plaintiff Counsel Better Looking?Is Plaintiff Counsel Better Looking?–How Much Will They Ask the Jury For?How Much Will They Ask the Jury For?

Look Beyond the Lawsuit Look Beyond the Lawsuit PapersPapers

12

Local and National NewsLocal and National News

• TV, Newspaper and Social Media ExplosionsTV, Newspaper and Social Media Explosions–Police MattersPolice Matters–Government Employment Law ChangesGovernment Employment Law Changes–Abuse Abuse –Unrelated IssuesUnrelated Issues• Higher TaxesHigher Taxes• Pension ProblemsPension Problems

13

Cost of Defense ResolutionCost of Defense Resolution

• Expenses to ConsiderExpenses to Consider–Attorney feesAttorney fees–Expert FeesExpert Fees–Employee Wages + Lost Work TimeEmployee Wages + Lost Work Time

• More than Just Dollars at RiskMore than Just Dollars at Risk–Newspaper ReportsNewspaper Reports–TVTV–Social MediaSocial Media

14

Lessons Learned From a Mock JuryLessons Learned From a Mock Jury

•A Non-Related Person’s Case AnalysisA Non-Related Person’s Case Analysis• They Can Provide Unexpected InsightThey Can Provide Unexpected Insight–““Federal Subsidiaries No TaxpayerFederal Subsidiaries No Taxpayer Exposure in Cases Like This.” Exposure in Cases Like This.”

15

Who Makes the Ultimate Decision?Who Makes the Ultimate Decision?

•AttorneysAttorneys•AdjustersAdjusters•Risk ManagersRisk Managers•City CouncilCity Council•School BoardsSchool Boards

•Your Analysis of the Situation Your Analysis of the Situation MattersMatters

16

Possible Ramifications of a TrialPossible Ramifications of a Trial

• Media AttentionMedia Attention

–Would You Rather Explain a $100,000 Would You Rather Explain a $100,000 Settlement or a Million Dollar Verdict?Settlement or a Million Dollar Verdict?

Blame Your CarrierBlame Your Carrier

• Will a Large Verdict Set a Negative PrecedentWill a Large Verdict Set a Negative Precedent

• Do You Have Sufficient Limits?Do You Have Sufficient Limits?

17

Strategies to ConsiderStrategies to Consider• Putting Real Money on the TablePutting Real Money on the Table

They Can Get Their Money In a Few Weeks, Rather Than a Few YearsThey Can Get Their Money In a Few Weeks, Rather Than a Few Years

• Pending Motions Can Open the Door to SettlementPending Motions Can Open the Door to Settlement– We Do Not Always Have to Wait for the DecisionWe Do Not Always Have to Wait for the Decision

• Offers of JudgmentOffers of Judgment• Before the Settlement MeetingBefore the Settlement Meeting– Mediator ChoiceMediator Choice– Learn What You Can About the Plaintiff and FamilyLearn What You Can About the Plaintiff and Family– Develop a Starting Position and Where You Should StopDevelop a Starting Position and Where You Should Stop– Obtain a DemandObtain a Demand

• Alternative Dispute ResolutionsAlternative Dispute Resolutions– StructuresStructures

18

1919

Contact Information:Contact Information:

Richard A. Spiers, CPCU, ARM, AReRichard A. Spiers, CPCU, ARM, ARe Genesis Management and Insurance ServicesGenesis Management and Insurance Services 1 N. Wacker Drive Suite 17501 N. Wacker Drive Suite 1750 Chicago, IllinoisChicago, Illinois (312) 526-7566(312) 526-7566 richard.spiers@gumc.comrichard.spiers@gumc.com