In 2013, an unsecured brick wall collapsed onto a Salvation Army store in 2013, killing seven people and injuring another 12. The tragic incident occurred when the wall, which was located at a demolition site, fell onto the Philadelphia, PA thrift store. Following a 17-week long trial, victims were awarded a total of $227 million, to be divided among the survivors and family members of the deceased. In total, 19 families were affected by this.
The demolition site owner, the architect and contractor managing the demolition, and the Salvation Army were all found to be liable for the collapse, and thus the resulting injuries and deaths. The Salvation Army will pay $200 million of the settlement, and the demolition site owner is responsible for the remaining $27 million. Acan help you determine how to proceed if another’s negligence has caused you or a loved one harm.
How Will the Settlement be Divided?
In cases where large settlements are divided among multiple recipients, juries decide how much each plaintiff should receive. In some situations, however, parties may agree to divide the award outside of court. That is exactly how the Philadelphia case is being handled; the survivors and families will divide the proceeds in arbitration. This is different from a class action verdict in that every plaintiff must be in agreement with the way the award is to be distributed. In smaller cases, this agreement may be reached with a conversation and a handshake, but with nearly 20 parties involved in the Philadelphia case, an arbitrator is crucial to a fair, friendly, and efficient distribution process.
What is Arbitration?
Arbitration is one form of alternative dispute resolution (ADR), a process that provides an alternative to going to trial. In arbitration, each individual involved will be asked to sign an agreement that describes what was agreed upon. This effectively means that plaintiffs will not be permitted to appeal the decision, with very few exceptions. Once all parties have agreed to be bound by the agreement, anyone who wishes to receive a portion of the award must submit evidence of their damages to the arbitrator. Following this process, and based on the findings, the arbitrator will divide the damages as deemed appropriate. Although the trial above lasted several years, arbitration is rarely as long. In fact, this case will likely be concluded within a few months.
Disadvantages of Arbitration
In some cases, arbitration can dramatically reduce stress and legal costs. But it’s not always the best course of action. For starters, you have limited recourse following arbitration; if the arbitrator’s award isn’t fair, there is little to nothing you can do to air your grievances in court. Arbitration may also present an uneven playing field, created by the arbitration clauses of large companies, for example. And the process of choosing an arbitrator is rarely an objective one. If you are unsure whether arbitration is right for you, a Continue readingcan help you determine how to move forward.