First, let’s make sure we are all on the same page. Mediation is not arbitration. Arbitration is when a third party is selected to resolve the dispute. Whatever that person says is binding on both parties. Basically, the parties agree upon a third party to act as the “judge and jury.” After giving the parties the opportunity to present their side of the story and to present any relevant documents or other evidence, the arbitrator decides who wins and who loses. The rules as to how arbitration is conducted is typically left to the agreement of the parties.
Mediation is different. With mediation, a neutral person or persons facilitate communication between the parties having the dispute to assist them in reaching a mutually acceptable agreement. Mediation is entirely voluntary. The mediator acts as an intermediary in helping the parties resolve business and legal issues while explaining the relative strengths and weaknesses of the positions.
So how does mediation save on attorney’s fees? It saves you money in a number of ways. First, the parties split the cost of a mediator as opposed to paying their own attorneys fees. Second, because mediation is relatively speedy and procedurally a lot simpler than litigation and arbitration, a lot less fees are involved. Each side might have to pay an attorney $3,000 to $5,000 just to get started with a case. In litigation or court proceedings, the attorney’s fees mount very quickly. With mediation, typically two to three relatively short sessions are scheduled. Another great thing about mediation is that it is private and confidential. Lastly, even if the parties cannot resolve all of the issues, you are often able to resolve some of the issues and narrow down some of the others.
For questions about United Mediation Services, feel free to call 661-257-8877.