In a dispute between Bob and his insurer regarding liability damages, which resolution method is likely to be pursued?

In a dispute regarding liability damages between Bob and his insurer, arbitration is the likely resolution method to be pursued because it provides a structured and formal process for resolving disputes outside of the traditional court system. Arbitration involves an impartial third party who hears both sides of the dispute and makes a binding decision. This method is commonly used in insurance matters due to its efficiency and the expertise of arbitrators in dealing with insurance-related claims.

Arbitration often allows both parties to present evidence and arguments in a less formal setting than a court, which can be advantageous for individuals like Bob who may not be familiar with legal proceedings. This process is typically faster and less expensive than litigation, which makes it appealing for both insurers and policyholders.

Other methods mentioned have different contexts or purposes. An appraisal hearing is specifically used to resolve disputes related to the value of damaged property rather than liability. Small claims court is typically used for straightforward monetary disputes involving limited amounts, which may not adequately cover the complexities of liability damages. An independent audit is more relevant in financial contexts, such as verifying financial statements or compliance, rather than for resolving liability issues in a dispute with an insurer.