Advantages


The following chart compares litigation, arbitration and mediation.
The pros and cons of each are discussed in detail beneath the chart.
 

    Litigation

  • Formal process
  • Formal rules of evidence
  • Formal discovery
  • Public record
  • Judge/Jury makes decision
  • Verdicts final, subject to appeal
  • Expensive and time-consuming

 

 

    Arbitration

  • Less formal process
  • Rules of evidence relaxed
  • Limited discovery
  • Hearings are private
  • Arbiter makes decision
  • Decisions can be binding with limited appeal rights
  • Often quicker and cheaper than litigation

 

 

    Mediation

  • Least formal process
  • Rules of evidence do not apply
  • Informal fact-finding
  • Private and confidential
  • Parties make decision
  • Parties decide whether to settle; agreements are enforceable contracts
  • Quicker, cheaper and less stressful than litigation

 

 

chartsWhat are the disadvantages of litigation and arbitration?

Time and Money

  • Litigation – a courtroom trial – requires many hours of an attorney’s time over many months or years, taking depositions and other steps to learn about the other side’s case
  • Litigating even the simplest of disputes costs $10,000 to $20,000 and in more complex cases, it costs more — 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

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 sometimes in an amount neither side wanted. The award must be filed with a court to be enforced like a judgment, but unlike a judgment, the loser has little chance of appealing an unfavorable arbitration award

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 and resentment toward one another

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
  • There can be appeals and even without an appeal, more trips to court are often required 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

Publicity

  • Since most court proceedings and records are open to the public, there is no privacy in litigation; business secrets, family secrets, embarrassing details about your life all could be in tomorrow’s newspaper or on the evening news

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?

Fast and Efficient  Since an average mediation takes a single day, the efficacy of this method speaks for itself. A trial attorney’s time spent on the deposition of a single witness may take longer than the entire mediation, but depositions don’t settle cases.

Control  Since the whole process is voluntary, the parties have complete control over the outcome; if they don’t agree, there is no resolution and their other options are still available.

Finality  85% of disputes I mediate end in agreements which are fulfilled by both sides without any appeals or further litigation.

Win/Win  Mediation can provide creative solutions you just can’t get from a judge or 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 at 6:00 a.m., something a judge would not order them to stop doing. Relationships are often preserved, healed, even strengthened.

Privacy & Confidentiality  The process is completely private and confidential. This allows people to openly discuss issues without the possibility of public exposure.

Peace  Mediation usually results in a better understanding between people, which leads to peace. Clearing up misunderstandings promotes the peaceful resolution of most disputes.