Task force reviews litigation drivers, ADR success and concerns about litigation financing
February 03, 2026 | 2026 Legislature DE, Legislative, Delaware
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Members of the Automobile Insurance Reform Task Force shifted to litigation costs and discussed court rules, alternative dispute resolution (ADR) and financing that can affect litigation volume and insurance costs.
Speakers noted Delaware’s ADR regime has helped resolve many cases before trial. One participant described a Superior Court rule instituting mandatory ADR (mediation, arbitration or neutral fact-finding) for auto-injury cases introduced roughly 15 years ago; the group noted nonbinding arbitration for cases valued under $50,000 provides a faster forum and that some practitioners estimate ADR resolves the large majority of cases.
Discussion examined whether reforms in other states (notably Florida) reduced litigation-driven costs. Members said Florida’s package included measures such as limits on assignment-of-benefits and changes to attorney-fee structures; speakers cited a large drop in certain litigation categories in Florida (one participant cited a decline in auto-glass suits from 24,720 to 2,613) and urged caution about assuming the same measures would translate to Delaware.
Several members raised two financing categories: predatory pre-litigation loans to plaintiffs (small consumer loans with very high rates) and larger-scale third-party litigation or settlement funding. Members described pre-litigation loans as a consumer-protection issue and recommended disclosure; Paul Tetrault and others suggested further study and potential disclosure requirements for both pre-litigation loans and third-party funding.
No new formal action was taken. Staff were asked to include litigation-cost materials in the task force appendix and to prepare follow-up materials on pre-litigation loans and settlement-funding prevalence in Delaware.
Quotes: “Alternative dispute resolution resolves 95 to 98% of my caseload,” Mindy said. On consumer loans: “predatory pre litigation loans... are charging extremely high rates,” she said.
The task force will continue this topic at its next meeting on Feb. 9.
Speakers noted Delaware’s ADR regime has helped resolve many cases before trial. One participant described a Superior Court rule instituting mandatory ADR (mediation, arbitration or neutral fact-finding) for auto-injury cases introduced roughly 15 years ago; the group noted nonbinding arbitration for cases valued under $50,000 provides a faster forum and that some practitioners estimate ADR resolves the large majority of cases.
Discussion examined whether reforms in other states (notably Florida) reduced litigation-driven costs. Members said Florida’s package included measures such as limits on assignment-of-benefits and changes to attorney-fee structures; speakers cited a large drop in certain litigation categories in Florida (one participant cited a decline in auto-glass suits from 24,720 to 2,613) and urged caution about assuming the same measures would translate to Delaware.
Several members raised two financing categories: predatory pre-litigation loans to plaintiffs (small consumer loans with very high rates) and larger-scale third-party litigation or settlement funding. Members described pre-litigation loans as a consumer-protection issue and recommended disclosure; Paul Tetrault and others suggested further study and potential disclosure requirements for both pre-litigation loans and third-party funding.
No new formal action was taken. Staff were asked to include litigation-cost materials in the task force appendix and to prepare follow-up materials on pre-litigation loans and settlement-funding prevalence in Delaware.
Quotes: “Alternative dispute resolution resolves 95 to 98% of my caseload,” Mindy said. On consumer loans: “predatory pre litigation loans... are charging extremely high rates,” she said.
The task force will continue this topic at its next meeting on Feb. 9.
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