Is Mediation Alone Enough To Save Reinsurance Arbitration?
Mediation or negotiation will work in some cases, but the remaining cases will proceed to hearing where cost remains an important issue. As the survey results reflect, substantial sentiment exists in favor of tighter discovery limits as the preferred method to cut costs. Among respondents, an impressive 42.5% cited tighter limits on discovery as holding the most promise for reducing the cost of reinsurance disputes. This is consistent with the concern, as Foster reports, that some parties use discovery as a tactical weapon to delay or force favorable settlement of claims. The authors acknowledge that limiting discovery or types of evidence across the board in a dispute resolution venue from which there is only a limited right of appeal is difficult. Discovery limitations are inherently unattractive when viewed from the perspective of the party with the least knowledge and greatest need for discovery. There is always the risk that a blanket limitation will trigger the vacating of an awa
