What Adjusters Wish Lawyers Knew About Mediation

By: Raul Romaguera
Florida Supreme Court Certified Circuit Civil Mediator
Florida Supreme Court Qualified Arbitrator

Having done litigation for 35+ years and thousands of mediations both as a trial lawyer and as a mediator, it surprises me to see attorneys appear at mediation unprepared and unaware of why mediation can be crucial for them and their clients. On the defense side, the attorney will have prepared a pre mediation report advising their clients/or the carriers both the strengths and weaknesses of their case. The report may include jury verdict searches but ultimately what the “authority” the claims adjuster might bring isn’t limitless. Adjusters almost never walk into mediation with a blank check. Their authority is shaped by pre-set reserves, supervisor or committee approval, actuarial expectations, and Internal reporting cycles. The defense lawyer may not know what authority his own client’s rep has in his or her’s pocket.

Accordingly, it behooves both sides to have documentation before mediation so the adjuster can increase authority in advance. Adjusters need evidence to justify paying more therefore provide: 1) Medical records; 2) Wage loss proof; 3) Life-care plans; 4) Lien information; 5) Photos, videos, diagrams; 6) Prior medical histories; or 7) Any other information that’s worthwhile. Therefore, while a PowerPoint presentation on the day of the mediation might seem persuasive, the dye may have been cast well before it; maybe provide the PowerPpoint presentation, or at least a portion of it before the mediation.

Lawyers should send a complete, organized demand package 2–3 weeks before mediation because timing matters to adjusters. They operate inside cycles which may include quarterly reserve reviews, year-end closing pressure, monthly reporting deadlines and litigation budget resets. Therefore, a mediation held at the wrong time, without good documentation can kill momentum and frustrate results; yes, timing is important.

An opening demand can set the tone. Indeed, adjusters do expect high initial demands—but if the demand is absurd and untethered from reality, it can damage credibility, slow the negotiations, and might make authority harder to obtain. The last thing a lawyer wants to do is give an adjuster a good excuse to not negotiate in good faith with you.

Adjusters are there to try to resolve the case; that’s their raison d’etre. It’s a symbiotic relationship. They are grading the lawyer’s preparation. They notice whether the lawyer knows the file, whether the client is prepared, whether the demand package was complete, and whether the lawyer can articulate damages clearly. Indeed, a well-prepared lawyer increases the adjuster’s confidence in paying more for the claim.

Sun Tzu said, “The wise warrior avoids the battle.” My thoughts are to avoid creating more needless battles that, in the end, may not get you to where you want to be. The adjuster may not be your friend, but he/she’s not your enemy either. Your goals are the same… help each other to get there.