If a contractor estimates repairs for $85,000 and the insurer estimates them at $63,000, and they can't agree, what is the best approach for both parties wanting advisory assistance?

When two parties, such as a contractor and an insurer, cannot reach an agreement on the estimated cost of repairs, seeking advisory assistance through mediation is often the most constructive approach. Mediation involves a neutral third-party mediator who facilitates a discussion between the parties to help them reach a mutually acceptable resolution.

This method is beneficial because it allows both sides to express their concerns and perspectives in a collaborative environment, which can lead to a quicker and less adversarial resolution compared to other methods like litigation or arbitration. Mediation also tends to be more cost-effective and time-efficient. The goal is to achieve a win-win situation, which can preserve the working relationship between the contractor and the insurer.

In contrast, litigation involves a formal court process that can be lengthy and expensive, while a declaratory judgment action requires a court's intervention to determine the rights and obligations of the parties, which may not be necessary when mediation could facilitate a resolution. Arbitration, while binding, limits the ability of the parties to negotiate directly and may not allow for the same level of open communication as mediation does.

Therefore, mediation stands out as the best approach for both parties seeking advisory assistance in resolving their dispute amicably.