THOMPSON: USE OF CYBERSETTLE SAVES THE CITY TIME AND MONEY IN SETTLING CLAIMS
- More than 4,000 claims settled and an estimated $70 million saved since 2004 -
New York City Comptroller William C. Thompson, Jr. today announced that his office's use of Cybersettle, an online tool, has increased opportunities to resolve claims before litigation, resulting in claims against the City settling more quickly with significantly reduced settlement costs.
"My office began using Cybersettle in 2004 with the goal of saving the City money in claim settlement costs," Thompson said. "I am proud that my office has met that goal and been able to save the City an estimated $70 million over the last five years."
Under the New York City Charter, the Office of the New York City Comptroller is responsible for settling and adjusting claims for and against the City. On average about 24,000 claims are filed against the City each year.
In February 2004, the Comptroller's Office began a demonstration project with Cybersettle to settle personal injury and property damage claims against the City. The demonstration project was a short-term pilot exercise designed to test and evaluate the feasibility and application of an innovative product, approach, and technology not currently used by the City. Subsequently, the Comptroller's Office contracted with Cybersettle to continue using the technology.
Cybersettle facilitates high-speed, confidential claim settlements by matching offers and demands and allowing parties to settle disputes instantly via a secure internet connection. Cybersettle uses a patented online, double-blind bid process for matching each party's settlement offers and demands.
Since its inception on February 23, 2004 through June 30, 2009, 4,002 claims have been settled using Cybersettle for a total of $46,671,378, or an average of $11,662 per claim. Cybersettle settlements take an average of six to 12 months to resolve.
By comparison, the average settlement for similar claims that go into litigation is $25,379 and takes an average of four years to resolve. By using Cybersettle to settle personal injury claims pre-litigation, the average settlement amount has been reduced by $13,717 per claim, representing an estimated savings of $70,167,494 in settlement costs over the five years that Cybersettle has been in use.
The Comptroller's Office also has used Cybersettle to settle an additional 1,059 property damage claims prior to litigation.
In addition to the savings benefit, the Comptroller's Office has been able to expand its operations to 24 hours a day, seven days a week using Cybersettle without incurring additional costs since attorneys and adjusters can settle cases after regular office hours.
The number of claims that have settled using Cybersettle have more than quadrupled since its introduction. In calendar year 2004, 287 claims were settled. In Fiscal Year 2009, 1,149 claims were settled. Claims settled with Cybersettle include accidents involving city vehicles, sidewalk trip and fall cases, and incidents at schools, among others.
When using Cybersettle, the Comptroller's claim adjusters identify cases that are either ready to pursue settlement or require additional information to initiate settlement negotiations. Claim adjusters then input claims into the Cybersettle system. Cybersettle notifies the plaintiff's attorneys of the City's intention to negotiate and requests appropriate documentation.
Claims adjusters enter offers - which cannot be seen by the plaintiffs - into Cybersettle. Plaintiff's attorneys respond with corresponding demands - which cannot be viewed by the City - through Cybersettle. If a demand and offer overlap, a settlement is automatically achieved and Cybersettle informs the parties. If the claim does not settle, parties can continue settlement negotiations by making additional offers or demands. Claims entered into Cybersettle can never settle for more than the Comptroller's Office's highest offer.
In 2007, Government Technology Magazine and the NYC Department of Information Technology & Telecommunications selected the Comptroller's Office Cybersettle Project as the Most Innovative Use of Technology in New York City. In 2005, Business Week selected the Comptroller's Office use of Cybersettle as one of "Top 50 Web Applications of the Year."