There is something happening in the industry that is making it less profitable to just sue. Medicare is requiring both workers comp and liability claims to fund part of the settlement for the future medical expenses - a medicare set aside. It is not required for small claims - but any claims over $25000 where there is a likelihood of the person being on Medicare or qualifing for Medicare within the next 36 months (due to injury, age, etc.). Before, claimant got the settlement and then could file for his bills to be paid by Medicare in the future - no more until that fund is exhausted and they tell you exactly how much of the settlement must go into that fund.
Mediation has been an excellent tool in Florida to hold costs down under workers compensation. It is required by law before anything actually goes to a work comp hearing in Florida. I would say I settled 90% of my cases through mediation. It can be done without attorneys or with. It is actually easier with attorneys since the claimant feels he has someone on his side. If you look at how the insurance rates have plummeted in Florida for business (workers comp) in the last few years, I think it is certainly a tool to be considered across the board.
I disagree with the thought the winner of the suit pays everyones costs. The winner is often the defense - why should a homeowner's insurance company have to pay for the plaintiff to sue you just because they prevailed. I think that would cause more suits, not less. Many cases are dismissed because they are proved beforehand there is no liability - I would not want to have to fund everyone that wanted to bring an action against someone.
Just my two cents.