SIMPLE TOOLS SOLVE COMPLEX PROBLEMS
Disintermediated Solutions to efficiently resolve substantial disputes without enormous legal fees and other burdens.
How it Works
Parties can engage EnsureResolve to propose a Disintermediated Solution entirely without prejudice, and its workings are private and confidential. Disputing parties can initiate the process together, and we will ask you to provide a short statement of the dispute. As required in any jurisdiction, licensed practitioners will be engaged to administer the process.
We act quickly. We gain an understanding of the dispute by studying the materials and interviewing those with relevant information. We then provide a preliminary evaluation of the dispute in a reasoned memorandum. Ordinarily without lawyers, the parties meet with us in person, or in a virtual conference room, and they are provided with a full opportunity to question the evaluation. Ultimately, if we do our job correctly, the conclusions should make sense to all sides of the dispute.
After this preliminary evaluation is vetted with the parties, we prepare a cost benefit analysis which reflects what the parties might expect if they proceed to litigate, arbitrate or mediate their dispute in traditional tribunals. The analysis will consider what the parties might expect in best and worst case scenarios, it will modify those outcomes by the expected costs of proceeding. Alternatively, we offer solutions that narrow disputes and provide parties with ranges within which they can negotiate their own deal.
The Disintermediated Solution is also useful for parties seeking alternative ways of proceeding in connection with disputed matters at any stage of their development. Those with litigation fatigue in existing court, arbitration or mediation proceedings that are dragging on and getting more contentious and expensive than originally expected, can hit the “pause button” to engage EnsureResolve to propose a Disintermediated Solution that can allow for an immediate and more practical conclusion. Traditional court, arbitration and mediation proceedings are not designed to accommodate the peculiarities of any particular case or set of parties. They are sometimes designed as one size fits all solutions that don’t always work very well. EnsureResolve believes it can do better by offering a process that is custom made for each dispute.
EnsureResolve does not engage in the practice of law; and it does not provide arbitration or mediation services. Those seeking such services should consult qualified professionals in their local jurisdictions. As required by law, EnsureResolve will advise parties to seek advice from licensed professionals in their local jurisdictions.
Evaluate The Savings Afforded by a Disintermediated Solution
Here is an example to demonstrate how we can resolve disputes more efficiently. Assume a simple case involving an Insurance Company and a Policyholder whose $90,000 claim was rejected. The parties engage EnsureResolve to craft a solution.
The example uses small numbers for illustration and assumes that, after careful evaluation, EnsureResolve determines that the case is a toss-up, i.e., each side has a 50% chance of winning or losing. The rationale behind the 50% determination would be reasoned in a written memorandum.
By disintermediating the dispute, both parties can realize 75% of what would otherwise be their Best Case Scenarios.
Lawyers’ Fees and other costs of 33.3% each side (total of 60,000 fees can be eliminated)
Best Case in Success Scenario for each side—if case goes to Court:
–For Policy Holder: Net Recovery +60,000 (Policy Payment of 90,000 less legal costs of 30,000)
–For Insurance Co: Net Loss –60,000 (Avoids Policy Payout of 90,000 but incurs legal costs of 30,000)
Worst Case in Loss Scenario for each side—if case goes to Court:
–For Policy Holder: Loss 120,000 (90,000 Loss Suffered plus legal fee of 30,000)
–For Insurance Co: Loss 120,000 (90,000 Policy Payout plus legal fee of 30,000)
Disintermediation creates a “Notional Settlement Fund” of 60,000, adding together legal cost savings of 30,000 for each side, which transforms a 50/50 compromise into only a 25% haircut from each side’s Best Case Scenario.
The Disintermediated Solution:
–Policy Holder: Net Recovery of 45,000 (25% less than Ultimate Success of 60,000 Payment)
–Insurance Co: Net Recovery of 45,000 (25% less than Ultimate Success of 60,000 Payment)
Each side will get more than half a loaf while the risk of loss was much greater
The difference is notionally financed by the legal community based on the value of savings realized by eliminating legal fees and other costs. And, there is more—there is a “Disintermediation Dividend” (that compensates for a big part of the 25% haircut) in the form of savings realized by eliminating litigation burdens and delay, e.g., executive time, other expenses for expert witnesses, printing, document and deposition discovery, etc., and the emotional toll for the Policyholder and the reputational toll for the Insurance Company.
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