Why Should You Consider Mediation before Litigation?

Mediation is a form of alternative dispute resolution in which a neutral third party, known as a mediator, helps disputing parties reach a mutually acceptable agreement. Mediation can be a useful tool for resolving disputes in a variety of contexts, including business, family, and legal disputes. It is often considered a more cost-effective and efficient option than litigation. In this article, we will explore the reasons why you should consider mediation before litigation, with a focus on cost savings statistics from the United States.

1. Understand the cost savings of mediation. Mediation is often less expensive than litigation. According to a study by the American Bar Association, the average cost of a mediated case is $3,000, while the average cost of a litigated case is $36,000. This means that mediation can save parties an average of $33,000 per case.

2. Understand the time savings of mediation. Mediation is also faster than litigation. According to the same study by the American Bar Association, the average length of a mediated case is four months, while the average length of a litigated case is 18 months. This means that mediation can save parties an average of 14 months per case.

3. Understand the benefits of preserving relationships. Mediation allows parties to maintain a relationship, unlike litigation which can be adversarial. Mediation is a collaborative process that promotes communication and understanding, which can help to preserve business, family and personal relationships.

4. Recognize the level of control that mediation offers. In mediation, the parties have control over the outcome of their dispute. Mediation allows parties to create a solution that is tailored to their unique needs and concerns. In contrast, litigation results in a decision made by a judge or jury, which may not take into account the specific needs and concerns of the parties.

5. Understand the flexibility of mediation. Mediation can be scheduled at a time and place that is convenient for the parties. Mediation is typically less formal than litigation and can be conducted in a location that is comfortable for all parties.

6. Recognize the confidentiality of mediation. Mediation is typically confidential and allows parties to resolve disputes without the publicity of litigation. Mediation proceedings and agreements are not public record, which allows parties to keep their dispute private.

7. Seek professional assistance. Before deciding on litigation or mediation, it is important to seek the advice of a qualified professional. A trained mediator can help you understand the process, the benefits and the potential cost savings of mediation.

In conclusion, mediation is a cost-effective, efficient and flexible alternative to litigation. It can save parties an average of $33,000 and 14 months in a case. Mediation also allows parties to preserve relationships, have control over the outcome of their dispute, and keep the dispute confidential. Parties should consider seeking the advice of a qualified professional before deciding on litigation or mediation.'

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