Insurance Companies, Mandatory Arbitration And Mischief-Making

In most of Washington’s counties, the courts have adopted mandatory arbitration. Mandatory arbitration applies to cases or claims where there is less than $50,000.00 in dispute.

Arbitrators in these cases are chosen as a result of the parties’ selections and de-selections of what is called a "Strike List." The Strike List is made up of practicing attorneys who have volunteered to serve as arbitrators. The only qualification required is that the attorney has been in practice for five years.

The selection of the arbitrator has a significant bearing on the outcome of the case.

Sometimes the Strike Lists we receive are filled with plaintiffs’ lawyers. While there is an obligation to neutrality, every arbitrator brings his or her biases to the proceeding. The Strike Lists, filled with plaintiffs’ lawyers, are good news for injured clients. Strike Lists filled with defense lawyers can mean bad news.

More often than not, Strike Lists have a mix of both plaintiff and defense attorneys. Our response to these mixed Strike Lists has to be strategic. One strategy employed by insurance companies as of late is to hire two attorneys to represent them or their insureds. By appointing two attorneys, the insurance companies have the opportunity to double their ability to select and de-select potential arbitrators.

We think this is unfair to injured persons and ultimately perverts the well-meaning intent behind mandatory arbitration. We are working diligently to effectuate reforms and create parity between plaintiffs and defendants when it comes to arbitrator selection.