There are advantages and disadvantages of Mediation. Mediation is a widely used form of alternative dispute resolution because it can offer the parties the opportunity to resolve their issues without court intervention. In fact, it is so popular that it is now virtually compulsory in any civil matter to go through mediation before going to trial. This article will explore the advantages and disadvantages of resolving issues at mediation without going to court.
Mediation is considerably cheaper than court litigation because it eliminates the costly discovery process. Litigation can be extremely expensive because parties have to pay for depositions, court reports, as well as the attorneys’ fees associate with the discovery process. Due to the speed and directness of mediation, these costs can be completely eliminated. Similarly, mediations can be scheduled at the convenience of the parties and the mediators, which eliminates the need to wait on a long court docket. Mediation is also advantageous because it does not take place in open court and it does not become public records. This can be beneficial if the parties are trying to maintain confidentiality.
Mediation might be a waste of time and resources if one of the parties does not intend to reach a compromise. Although some states have enacted statutes that requires the parties to act in good-faith, parties still incur additional costs if they decide to proceed to litigation because mediation fees are nonrefundable. While it might save costs, mediation is not an ideal way to determine the truth or facts of a case. In a litigated case, the parties have gone through the discovery process by gathering statements from witnesses and they have had the opportunity to review all relevant contracts and documentations. If parties agree to binding mediation, then it would be very difficult to have the decision set aside if additional relevant facts arise later on that might have influenced the outcome of the dispute.
This article is intended to provide an overview of mediation. It is important to keep in mind that every situation is different so if you have any specific questions regarding mediation, contact the Boyer Law Firm today.