1. “Settle or Try?” That is the Question Richard A. Spiers CPCU, ARM, ARe April 17, 2015

2. Agenda IntroductionIntroduction WhyWhy Why NotWhy Not What If I DoWhat If I Do What If I Don’tWhat If I Don’t Making the DecisionMaking the Decision Possible RamificationsPossible Ramifications 2

3. Wait, We Did Nothing Wrong Auto LossesAuto Losses General LiabilityGeneral Liability Employment MattersEmployment Matters Zoning and Land UseZoning and Land Use Sex MolSex Mol Police MattersPolice Matters 3

4. FAQs I Receive Why Should We Have to Pay??? A Public Apology, For What? 4

5. Why Try? Sometimes a Trial is the Only Alternative Large DemandsLarge Demands Unclear and Unproven Facts That Sound BadUnclear and Unproven Facts That Sound Bad DamagesDamages –Larger than Expected or –Seemingly Unrelated to the Occurrence Uncooperative Showboating AttorneysUncooperative Showboating Attorneys 5

6. Why Not Try? Economic ReasonsEconomic Reasons Negative Publicity PotentialNegative Publicity Potential Surrounding IssuesSurrounding Issues 6

7. Important Issues to Consider Your ReputationYour Reputation Plaintiff Attorney’s ReputationPlaintiff Attorney’s Reputation The Venue – State and FederalThe Venue – State and Federal Immunities and Tort CapsImmunities and Tort Caps Cost of Defense Through Trial – Get a BudgetCost of Defense Through Trial – Get a Budget Verdict Potential – Check for Prior Similar Trial OutcomesVerdict Potential – Check for Prior Similar Trial Outcomes Emotional AspectsEmotional Aspects Local and National NewsLocal and National News 7

8. Your Reputation Publicity Surrounding Initial OccurrencePublicity Surrounding Initial Occurrence Previous Similar SituationsPrevious Similar Situations PoliticsPolitics Overall EconomicsOverall Economics 8

9. Plaintiff Attorney’s Reputation Well-Known Plaintiff Attorney Can Raise Value of the CaseWell-Known Plaintiff Attorney Can Raise Value of the Case TV Commercials – Public Knows ThemTV Commercials – Public Knows Them Highly Publicized Large VerdictsHighly Publicized Large Verdicts 9

10. State or Federal Venue Jurisdictional Hell HolesJurisdictional Hell Holes State LawsState Laws Federal AspectsFederal Aspects –Attorney Fees –Jury pool 10

11. Will Immunities and Tort Caps Apply? On PaperOn Paper –They Should In RealityIn Reality –They May Not WaiversWaivers –Think About How Others Will See Your Behavior 11

12. Verdict Potential Anything Can HappenAnything Can Happen VenueVenue Potential Length of TrialPotential Length of Trial Jury of Your Peers?Jury of Your Peers? –Is Plaintiff Counsel Better Looking? –How Much Will They Ask the Jury For? Look Beyond the Lawsuit Papers Look Beyond the Lawsuit Papers 12

13. Local and National News TV, Newspaper and Social Media ExplosionsTV, Newspaper and Social Media Explosions –Police Matters –Government Employment Law Changes –Abuse –Unrelated Issues Higher TaxesHigher Taxes Pension ProblemsPension Problems 13

14. Cost of Defense Resolution Expenses to ConsiderExpenses to Consider –Attorney fees –Expert Fees –Employee Wages + Lost Work Time More than Just Dollars at RiskMore than Just Dollars at Risk –Newspaper Reports –TV –Social Media 14

15. Lessons Learned From a Mock Jury A Non-Related Person’s Case AnalysisA Non-Related Person’s Case Analysis They Can Provide Unexpected InsightThey Can Provide Unexpected Insight –“Federal Subsidiaries No Taxpayer Exposure in Cases Like This.” Exposure in Cases Like This.” 15

16. Who Makes the Ultimate Decision? AttorneysAttorneys AdjustersAdjusters Risk ManagersRisk Managers City CouncilCity Council School BoardsSchool Boards Your Analysis of the Situation MattersYour Analysis of the Situation Matters 16

17. Possible Ramifications of a Trial Media AttentionMedia Attention –Would You Rather Explain a $100,000 Settlement or a Million Dollar Verdict? Blame Your Carrier Blame Your Carrier Will a Large Verdict Set a Negative PrecedentWill a Large Verdict Set a Negative Precedent Do You Have Sufficient Limits?Do You Have Sufficient Limits? 17

18. Strategies to Consider Putting Real Money on the TablePutting Real Money on the Table They Can Get Their Money In a Few Weeks, Rather Than a Few Years Pending Motions Can Open the Door to SettlementPending Motions Can Open the Door to Settlement –We Do Not Always Have to Wait for the Decision Offers of JudgmentOffers of Judgment Before the Settlement MeetingBefore the Settlement Meeting –Mediator Choice –Learn What You Can About the Plaintiff and Family –Develop a Starting Position and Where You Should Stop –Obtain a Demand Alternative Dispute ResolutionsAlternative Dispute Resolutions –Structures 18

19. 19 Contact Information: Contact Information: Richard A. Spiers, CPCU, ARM, ARe Richard A. Spiers, CPCU, ARM, ARe Genesis Management and Insurance Services Genesis Management and Insurance Services 1 N. Wacker Drive Suite 1750 1 N. Wacker Drive Suite 1750 Chicago, Illinois Chicago, Illinois (312) 526-7566 (312) 526-7566 richard.spiers@gumc.com richard.spiers@gumc.com