Once of the largest downfalls in taking disputes to court and litigating them in the traditional fashion is the high cost associated with the process. All too often, parties feel the doors of justice are simply not open to them due to cost strictures. Be they neighbors who require assistance with a property boundary dispute, a divorcing couple with a tight budget, or a small business struggling to get by, the expense of a legal solution should never prohibit the service of justice. Mediation offers just such a cost-effective solution and can bring about a resolution to parties’ conflicts in an efficient and equitable manner.
Simply put, the cost of litigation is exponentially higher that the cost of mediation. For example, Susan Zuckerman in the May-July 2007 edition of the Dispute Resolution Journal presented a construction litigation hypothetical to a panel of experts. Based on their review, litigation of the matter would cost a whopping 50% more than mediation of the same dispute.
In a 2005 report by the American Intellectual Property Law Association, they revealed the average cost of patent litigation ran $2,000,000, trademark litigation ran $700,000, and copyright litigation ran $440,000. These costs are attributable to the adversarial proceedings of a traditional lawsuit. Each attorney involved is creating and responding to documents and a high billing rate, usually for years. Compared to mediation, where parties can come to the table and work with each other to resolve their conflict, it is clear to see where the ultimate savings come from.
Divorce is a type of conflict that is perfectly suited for mediation. The cost of a traditional litigated divorce runs anywhere from $8,200 – $60,000 with an average cost of $20,000 per spouse. This cost can be exacerbated by the adversarial system where parties may move apart merely to “win” rather than work together to a resolution. The high cost of divorce litigation can ultimately threaten the financial security of both parties that will, in the end, leave them in dire financial straits rather than leave them with a workable solution created and agreed to by the parties themselves.
Money is not the only “cost” associated with litigation. Time is also a large factor. The litigation trajectory includes much more time for paperwork, discovery, writing and responding to motions, depositions, and the overburdened schedule of the courts. Mediation facilitates the parties working toward a workable solution from day one without unnecessary posturing and expense. Your time, as well as your money, is valuable. Considering these things; mediation is the clear choice for dispute resolution.