Mediation and Potential Settlement with NECC

So far, there has not been any type of settlement with NECC. However, it does look possible for the future. As bankruptcy court has been seizing assets from the NECC and their corporate employees, the Multidistrict Litigation (MDL) judge recently released an order establishing a mediation program.

Mediation encourages parties to work toward a settlement. There is no guarantee that mediation will result in a global settlement with NECC, but it is an effort to move things along as quickly as possible.

Mediation benefits both parties. All potential entities responsible for the harm done (hospitals, clinics, etc.) can opt to participate in this mediation program. Because NECC filed for bankruptcy, there is a question as to the amount of compensation available. The participation of clinics and hospitals in the litigation will help bolster the compensation funds.¬†Since the defense’s assets are limited as it is, a settlement with NECC will hopefully minimize cost spent on litigation as well.

The deadline for the potential defendants to opt into the volunteer mediation program is September 23, 2013. On this date, we will know which clinics and hospitals have opted into mediation.

Per previous court orders, if your hospital or clinic opts into the MDL, you must pursue them in the MDL litigation, rather than in Minnesota local court.

Note for our current and future clients: Shortly after the opt-in deadline arrives, we will notify you of whether your clinic or hospital opted in and detail our next steps. In the meantime, please feel free to contact our office with questions. Thank you for your continued trust.

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