--- title: "Chi-Chi’s Mediation Program" date: 2004-04-28T09:48:18-07:00 author: Bill Marler canonical_url: "https://marlerclark.com/news_events/chichis-mediation-program" section: News --- [All News](/news_events) / # Chi-Chi’s Mediation Program In order to participate in the Mediation Program, a claimant with a Hepatitis Claim (a “Hepatitis Claimant”) must opt-in to the Mediation Program on the Hepatitis A Proof of Claim Form. If the Hepatitis Claimant does not opt to participate in the Mediation Program, the Hepatitis Claimant will not be included in the below described process. Chi-Chi’s, Inc. (“Chi-Chi’s”), the Official Committee of Unsecured Creditors, and counsel to certain of the Hepatitis A Claimants recommend participation in the Mediation Program. Pursuant to the Stipulation and Order Granting Relief from the Automatic Stay Provided by 11 U.S.C. ß 362(a) for the Purpose of Resolving Hepatitis A Related Claims (the “Stipulation and Order”), the Court approved a Mediation Program for resolving Hepatitis A Claims. Chi-Chi’s intends to use a non-binding mediation process pursuant to which claims against Chi-Chi’s arising out of the Outbreak may be resolved. Mediation is a non-binding meeting of the parties which has, as its sole purpose, the settlement of the case. The mediation will be presided over by Tom Cooper, Don Ziegler and/or any other mediator (collectively, the “Mediator”) named by Chi-Chi’s with the consent of counsel to certain Hepatitis Claimants. The mediator will go back and forth between the parties, and exchange offers of settlement and additional information throughout the mediation process. Through discussion of relevant facts and issues, the mediator attempts to bring the parties together so that a settlement can be reached. The mediator has no power to impose a settlement. The mediations shall take place in Pittsburgh, PA, at a location to be named by the Mediator. The Mediator will contact a participating party at least 30 days prior to the scheduled mediation with the location, the time, and any documents recommended by the Mediator to be provided. Any participating Hepatitis Claimant may attend the mediation with counsel, if any. Any participating Hepatitis Claimant located more than 100 miles away from the site chosen by the Mediator may participate telephonically or via video-conference if a mutually agreeable location cannot be chosen. If the participating Hepatitis Claimant is within 100 miles of the site named by the Mediator, Chi-Chi’s requests the personal attendance of the parties, unless undue hardship can be shown. Chi-Chi’s strongly recommends that the participating parties personally attend the mediation sessions. In the event the Mediation does not result in the settlement and payment of the Allowed Hepatitis A claim (“Allowed Hepatitis A Claim”) within 90 days after the Bar Date or such additional time as the Hepatitis Claimant and Chi-Chi’s agree to in writing, then the Automatic Stay, as it relates solely to that unresolved Allowed Hepatitis Claim, shall be modified without further order of the Bankruptcy Court to permit the holder of said Hepatitis Claim to prosecute said Hepatitis Claim in a non-bankruptcy Court and collect any judgment or settlement reached from one or more of Chi-Chi’s Insurance Companies. Pursuant to the Stipulation and Order, to the extent that the mediation results in the resolution of an Allowed Hepatitis Claim requiring the payment of $35,000 or less, said amount shall be paid by Chi-Chi’s to the extent that the self-insured retention portion of Chi-Chi’s insurance (“SIR”) has not been exhausted, without the need to provide notice to any party or obtain an order authorizing said payment from the Bankruptcy Court. In the event the SIR is exhausted, then the holder of an Allowed Hepatitis Claim may look to the Debtors’ insurance carriers and insurance policies for payment of the Allowed Hepatitis Claims of $35,000 or less, and may pursue any and all remedies against the Debtors’ insurance carriers in pursuit of said collection, provided the holder of the Allowed Hepatitis Claim may not seek to enforce said Allowed Hepatitis Claim directly against the Debtors’ assets without further order of the Bankruptcy Court. To the extent that the mediation results in an Allowed Hepatitis Claim in excess of $35,000, Chi-Chi’s shall move under Federal Rule of Bankruptcy Procedure 9019 to obtain approval from the Bankruptcy Court to have Chi-Chi’s or one of its insurance carriers pay the Allowed Hepatitis Claim. Nothing herein is intended to modify the Stipulation and Order as to the parties to the Stipulation and Order. 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