Mediation Principles for Insurer-Insured Disputes
In 2005 the International Institute for Conflict Prevention & Resolution (CPR Institute) convened the Corporate Insurance Coverage Committee, chaired by Dennis R. Connolly, and comprised of representatives of corporate policyholders, commercial insurers, coverage counsel, and defense counsel.
The role of the Committee was to devise and promulgate best practices for managing policyholder coverage disputes in an efficient and commercially rational manner. As a function of this role, the Committee drafted Mediation Principles for Insurer-Insured Disputes, designed to encourage parties to engage in mediation when faced with the prospect of coverage or other insurance-related litigation. These Principles are contained in this document.
We hope that you will agree to and sign them. The creation of an ever-increasing group of powerful signatories will result in an enormous saving of time and money associated with trials and court costs, as well as a resolution process that will result in a less complicated flow of commerce.
We wish to thank the members of the Committee for their unstinting time and care in creating these Principles.
If you have received a copy of this brochure, we ask that you sign the accompanying pledge and return it to:
Helena Tavares Erickson
Senior Vice President & Secretary
International Institute for Conflict Prevention & Resolution
30 East 33rd Street
New York, NY 10016
|Dennis R. Connolly (Chair)
Michael J. Daly
Barbara E. Daniele
Mitchell F. Dolin
Jane Landis Foster
Barry W. Furst
Stephen F. Gates
David B. Goodwin
Thomas H. Hill
Michael P. Holland
Paul J. Mode, Jr.
Mary T. Porter
Zachary S. Rudman
David S. Sheiffer
J. Donald Tierney
Nancy L. Vanderlip
Robert C. Walker
Irene C. Warshauer
Mary Beth Wilkinson
1.1 Non-insurance companies which are signatories to the CPR Corporate Policy Statement on Alternatives to Litigation (“CPSAL”); and
1.2 Insurers which are signatories either to the CPSAL or to the CPR Inter-Insurer ADR Protocols.
1.3 Any other entity electing at any time to follow these principles.
1.4 Any companies included within 1.1-1.3 above may be referred to as “Parties.”
2. Governing Principles:
2.1 The Parties acknowledge and agree that the consensual resolution of disputes is to be preferred over imposed resolutions.
2.2 The Parties also acknowledge and agree that good faith confidential mediation is a favored process to achieve a consensual resolution of disputes.
2.3 Unless otherwise agreed by the Parties, or as otherwise set forth herein, the provisions of the CPR Mediation Procedure (CMP) shall apply to all proceedings hereunder.
3.1 The Parties to any dispute agree, upon the written request of any Party, to engage in good faith confidential mediation of their dispute.
3.2 After the delivery of a written request for mediation, at any time prior to appointment of a mediator, any party to the mediation may deliver to the parties and CPR a written request for a stay of the mediation, including specifically the commencement of the process for selecting a mediator, in order for the parties to engage in direct negotiations. CPR will stay further mediation proceedings, including selection of the mediator, for 30 days from receipt of such a notice or such longer time as the parties to the mediation may mutually agree in writing.
3.3 Subject to 3.2, the Parties shall engage in a good faith selection of a mediator, who shall be selected
(a) from among the CPR Insurance Coverage Mediation Panel by whatever process the Parties agree; or
(b) in any other manner agreed by the Parties; provided however,
(c) if the Parties fail to select a mediator pursuant to 3.3(a) or (b), then the “unable to agree” provisions of Section 2 of the CMP shall apply.
3.4 Consistent with the provisions of the CMP, the mediator may encourage the exchange of such information as may be necessary to resolve the dispute, but in no event does the mediator have the authority to order the production of any information.
We recognize that for many insurance coverage disputes there is a less expensive, more effective method of
resolution than the traditional lawsuit. Alternative dispute resolution (ADR) procedures involve collaborative
techniques which can often spare businesses the high costs of litigation.
In recognition of the foregoing, we subscribe to the CPR Mediation Principles for Insurer-Insured Disputes.
CHIEF LEGAL OFFICER
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For information on how to file a matter with CPR, see File a Case | CPR International Institute for Conflict Prevention & Resolution (cpradr.org).
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The information and resources on this website should not be construed as legal advice or opinion, or as a substitute for the advice of counsel.