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What is a binding arbitration?

My daughter was in a car accident almost 2 years ago, she was a passenger in her friends car. The person who hit them was found at fault however for him it was a fatal accident. My daughter just received a letter from her attorney advising the man’s insurance co. would like to hold a binding arbitration as his policy was a very low policy and between the 3 injured parties there would not be much to settle for as it was my daughter and 2 of her friends in the car. This happened in New Jersey and not being real sure of all the laws I am not real sure what to advise her. All three girls have suffered a great deal from this accident both physically and mentally. Although they know they were not in any way at fault for the accident it still haunts them that the young man died. He was on a motorcycle and they were in an SUV, Both vehicles were totaled. The girls also to this day when they are driving get very upset and panicky when ever a motorcycle is near them. My daughter still suffers.

Binding arbitration means your daughter and the adverse party(ies) agree to submit the facts to private person or persons (usually a lawyer or 2 or 3 lawyers) called an “arbitrator,” who acts as a private judge to decide the legal issues of liability & damages; and that she and the adverse parties agree to accept his decision. In a case like this all the injured parties would have to agree to arbitration. The advantage for everybody is that the costs and legal fees are reduced and the case and the damage payments would be much faster. As a passenger, your daughter has no liability & I have no idea of what injuries she suffered so I can’t tell you whether it is to her advantage to go to arbitration. She shoud discuss her options and the benefits of each choice with her attorney.

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