Discourage litigation. Persuade your neighbor to compromise whenever you can. Point out to them how the nominal winner is often a real loser -- in fees, expenses, and waste of time.Abraham Lincoln
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The following chart compares litigation, arbitration and mediation.
The pros and cons of each are discussed in detail beneath the chart.
| Litigation | Arbitration | Mediation |
| Formal process | Less formal process | Least formal process |
| Formal rules of evidence | Rules of evidence relaxed | Rules of evidence do not apply |
| Formal discovery | Limited discovery | Informal fact-finding |
| Public record | Hearings are private | Private and confidential |
| Judge/Jury makes decision | Arbiter makes decision | Parties make decision |
| Verdicts final, subject to appeal | Decisions can be binding with limited appeal rights | Parties decide whether to settle; agreements are enforceable contracts |
| Expensive and time-consuming | Often quicker and cheaper than litigation | Quicker, cheaper and less stressful than litigation |
| What are the disadvantages of
litigation and arbitration?
v Time
and Money. Litigation - a courtroom trial - requires many hours of an attorneys
time over many months or years, taking depositions and other steps to learn about the
other sides case. Litigating even the simplest of disputes costs $10,000 to $20,000
and in more complex cases it costs much more. Arbitration is usually a little faster so it
normally costs less than a court trial, but there are no guarantees it will be faster or
cheaper. As a way to resolve conflicts, they are both expensive, inefficient and can
permanently destroy relationships. v Win/Lose.
In
litigation, a judge or jury declares a winner and a loser and awards a judgment to the
winner. As recent high profile trials have shown, juries are very unpredictable. In
arbitration, one or more arbitrators acting as judges and jurors, consider the evidence,
decide who wins, and enter an award in their favor. The award must be filed with a court
to be enforced like a judgment. The loser has little chance of appealing an unfavorable
arbitration award. v Loss
of Control. In
both litigation and arbitration, control of the result is given to a third person or
persons with no stake in the outcome. Control of the process is held by the lawyers who
can only interact with their own clients and with one another. Personal contact between
the disputing parties is lost, increasing their feelings of alienation toward one another. v Inconclusive.
"Winning"
the case in court or at arbitration does not guarantee an end to the dispute. Most
judgments and awards require the loser to pay money to the winner, but getting the money
is not automatic. More trips to court to locate assets, attach liens, foreclose on assets,
and argue appeals are often required and if the person ordered to pay is bankrupt, all may
be for naught. v Publicity. Since
most court proceedings and records are open to the public, there is no guarantee of
privacy in litigation. Business secrets, family secrets, embarrassing details about your
life all could be in tomorrows newspaper or on the evening news. v Lose/Lose.
Whether
declared a winner or a loser, both sides lose. They lose control over the process and the
outcome, they lose relationships with others, and they lose the money spent fighting the
other side. |
Why is mediation an advantage over
other methods?
|
| v Fast
and Efficient. Since
an average mediation takes a single day, the efficacy of this method speaks for itself. A
trial attorneys time spent on the deposition of a single witness may take longer
than the mediation. v Control.
Since
the whole process is voluntary, the parties have complete control over the outcome; if
they dont agree, there is no resolution and their other options are still available.
v Finality. 95% of
disputes I mediate end in agreements that are fulfilled by both sides without any appeals
or further litigation. v Win/Win. Mediation
can provide creative solutions that cant be obtained in court or from an arbitrator.
Solutions like increased orders for products, a bonus, a training program for employees,
or simply a sincere apology. Or it could be an agreement for one party to stop doing
something like mowing their lawn in the morning. Something that, while it may be annoying,
would not be something a judge would order them to stop doing. Relationships are often
preserved, healed, even strengthened. v Privacy
& Confidentiality. The
process is completely private and confidential. This allows people to openly discuss
issues without the possibility of public exposure. v Peace. Mediation
usually results in a better understanding between people, which leads to peace. Clearing
up misunderstandings promotes the peaceful resolution of most disputes. |