ILNews

Mediation by monitor

Back to TopCommentsE-mailPrintBookmark and Share
Indiana Lawyer Focus

Property owners in Durham, N.C., upset about their tax bills now can go online and challenge them – often with a satisfactory result – without ever talking to anyone in county offices.

New Yorkers with insurance disputes soon will have them resolved in the cloud.

Those are just two examples of how online dispute resolution is changing and broadening the scope of mediation and arbitration. Where some see the awakening of a disruptive technology, others see an opportunity for mediators to assist in resolving a greater number of disputes.

“We believe we are going to bring more and more disputes to the mediation process and alternative dispute resolution professionals,” said Scott Carr, president and CEO of three-year-old Silicon Valley startup Modria. While there are other players in the marketplace such as Rezoud Corp. and Youstice, Modria appears to have become to online dispute resolution what Google is to Internet search engines.

henderson Henderson

Modria received a $5 million round of venture capital funding last year and since has parlayed that into contracts with municipalities including Durham County, N.C.; and agencies such as the American Arbitration Association, which processes more than 100,000 New York No Fault insurance disputes annually. The association announced that this quarter it will begin using Modria’s platform to mediate disputes.

In its short existence, Modria already claims to have processed more than 400 million disputes.

“I think it will be a necessary part of the skill set that mediators will need to do their work,” Ethan Katsh said of online dispute resolution. Katsh chairs the Modria board of advisors and is co-founder of the Center for Information Technology and Dispute Resolution at the University of Massachusetts.

From giant roots

Colin Rule and Chittu Nagarajan co-founded Modria and hold leadership positions in the company. Both have backgrounds in ADR and worked to develop the online dispute resolution systems at online commerce giants eBay and PayPal. Because of their sheer volume of customers, those companies had to learn to efficiently handle disputes to build trustworthy reputations.

Modria’s co-founders “really dedicated their careers to how to apply Internet technology to resolve disputes,” Carr said. Because eBay and PayPal had developed systems that were capable of resolving 90 percent of complaints without intervention of a neutral party, the founders believed the same strategies could be applied to a wider variety of disputes.

“The market itself is large. We estimate 1 to 3 percent of all transactions online and offline result in some dispute,” Carr said. Companies and organizations typically have in-house systems to deal with dissatisfied customers, but Carr believes those systems can gain efficiency and better resolve disputes through an always-accessible online platform.

“We’re all used to anytime, anywhere access to services and products, and we find disputes fall into the same category,” he said. “I don’t want to wait till 9 a.m. Monday,” to lodge a complaint.

People who use Modria’s dispute resolution platforms may never realize it, Carr said. For instance, the Durham, N.C., homeowner with a tax bill beef will go to the county’s website and use forms that Modria has developed for the county. The taxpayer also has the option of uploading exhibits and supporting information for an appeal.

The data is stored securely on cloud servers. In cases where online resolution isn’t possible, neutral mediators or arbitrators get involved, and the initial paper trail from the Web-based complaint will be available.

“What’s happening is we’re building an electronic case file,” Carr said. And in the case of government workers in Durham, their time is freed to focus on tougher tax-appeal cases that may be likelier to wind up in litigation.

Modria doesn’t currently have any clients in Indiana, but it’s pitching to them.

“I can think of many government agencies in Indiana that can benefit from online dispute resolution systems,” said Modria adviser Ruel Williamson, who has been in discussions with officials from public and private organizations in the state. Along with property tax appeals, he said public-health service claims and business-license disputes also could be well served.

“Many government agencies have taken the first step by allowing people to file claims and processes online,” Williamson said. “The next step is to fully embrace an online dispute resolution methodology that helps take a filing through resolution.”

What lies ahead?

Unresolved for alternative dispute resolution professionals is whether Modria and other online dispute resolution companies will bring new sources of business or undercut the work mediators currently do.

Rezoud, a St. Petersburg, Fla.-based startup, announced in March a proprietary “technology-enhanced dispute resolution” system that it promoted as a “disruptive innovation.”

“Dispute resolution and legal industries have become monolithic, ineffective, time-consuming, costly and non-consumer friendly,” the company said in a news release.

Indiana University Maurer School of Law Professor Bill Henderson has written about Modria and online dispute resolution’s portent for ADR, but he doesn’t quite envision such a sea change. “It’s a breakthrough when you think about it.”

A huge number of disputes don’t get resolved because of the small underlying value, Henderson said, and he sees Modria and others opening this latent market. “These are kind of low-stakes, highly voluminous types of transactions where disputes are going to arise,” he said.

Henderson said the minds behind Modria ran with protocols developed through the Harvard Negotiation Workshop, which found some near-universal bases for dispute resolution. “If we follow a few simple rules, most disputes go away,” Henderson said of the Harvard protocols.

It’s human nature to complain, pleasing when a complaint is heard, and rewarding when it’s resolved. “People are predictable,” Henderson said. “We think we’re special snowflakes.”

Simply asking a complainant what would make her happy can resolve a good number of complaints quickly and without complication, for example. Responses also may help organizations improve their processes and customer satisfaction.

Katsh said ADR practitioners should find Modria useful. “It will increase their effectiveness,” he said. “Technology, in general, in all our lives has provided something new that we have to live with; and a lot of it is complicated, and a lot of it is empowering.

“I think Modria has the technology to handle more disputes than any previous dispute resolution company, so it has a large investment in technology, and there’s a need for this technology,” Katsh said.

Henderson likened Modria’s entrance into ADR to an emergency room triage setting: The most serious cases are going to require the most personal attention. Modria and other online dispute resolution providers are situated to take care of those that just might need an aspirin or bandage, he said.

But he also noted that venture capitalists have been very receptive of Modria’s platform and promise.

“What maybe lawyers should be thinking about is Modria might move upstream and begin to eat into the business a little bit more over time,” Henderson said.•

ADVERTISEMENT

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in Indiana Lawyer editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by

facebook - twitter on Facebook & Twitter

Indiana State Bar Association

Indianapolis Bar Association

Evansville Bar Association

Allen County Bar Association

Indiana Lawyer on Facebook

facebook
ADVERTISEMENT
Subscribe to Indiana Lawyer
  1. My mother got temporary guardianship of my children in 2012. my husband and I got divorced 2015 the judge ordered me to have full custody of all my children. Does this mean the temporary guardianship is over? I'm confused because my divorce papers say I have custody and he gets visits and i get to claim the kids every year on my taxes. So just wondered since I have in black and white that I have custody if I can go get my kids from my moms and not go to jail?

  2. Someone off their meds? C'mon John, it is called the politics of Empire. Get with the program, will ya? How can we build one world under secularist ideals without breaking a few eggs? Of course, once it is fully built, is the American public who will feel the deadly grip of the velvet glove. One cannot lay down with dogs without getting fleas. The cup of wrath is nearly full, John Smith, nearly full. Oops, there I go, almost sounding as alarmist as Smith. Guess he and I both need to listen to this again: https://www.youtube.com/watch?v=CRnQ65J02XA

  3. Charles Rice was one of the greatest of the so-called great generation in America. I was privileged to count him among my mentors. He stood firm for Christ and Christ's Church in the Spirit of Thomas More, always quick to be a good servant of the King, but always God's first. I had Rice come speak to 700 in Fort Wayne as Obama took office. Rice was concerned that this rise of aggressive secularism and militant Islam were dual threats to Christendom,er, please forgive, I meant to say "Western Civilization". RIP Charlie. You are safe at home.

  4. It's a big fat black mark against the US that they radicalized a lot of these Afghan jihadis in the 80s to fight the soviets and then when they predictably got around to biting the hand that fed them, the US had to invade their homelands, install a bunch of corrupt drug kingpins and kleptocrats, take these guys and torture the hell out of them. Why for example did the US have to sodomize them? Dubya said "they hate us for our freedoms!" Here, try some of that freedom whether you like it or not!!! Now they got even more reasons to hate us-- lets just keep bombing the crap out of their populations, installing more puppet regimes, arming one faction against another, etc etc etc.... the US is becoming a monster. No wonder they hate us. Here's my modest recommendation. How about we follow "Just War" theory in the future. St Augustine had it right. How about we treat these obvious prisoners of war according to the Geneva convention instead of torturing them in sadistic and perverted ways.

  5. As usual, John is "spot-on." The subtle but poignant points he makes are numerous and warrant reflection by mediators and users. Oh but were it so simple.

ADVERTISEMENT