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PERSONAL NOTE | HELPFUL HINTS | CONTACT | LINKS
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COMMERCIAL MEDIATION F.A.Q.
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Cost containment
Client satisfaction
Privacy
Timing
Can I bring my lawyer?
Is mediation a good choice in my case?
Relationships matter - will mediation
help?
What is the difference between
mediation and arbitration?
We have an arbitration clause in our
contract. Can we still use mediation?
Does asking for mediation signal
weakness?
For more information on whether commercial mediation
could help you or your clients, contact Patricia.
- Cost
containment FAQS
Mediation can be cheaper than any other alternative. Normal fees for a
standard litigated Wills Variation Act or commercial lease dispute are
in the range of $10,000 - $20,000 per party. In cases like this, if
mediation produces agreement, each party can expect to save $5,000 -
$15,000. In one case in the last few years, counsel estimated that
they would charge each party $40,000 - $60,000 for a contested matter
involving complicated family business issues. With mediation, their
clients' bills for legal advice were about $25,000. The mediator
charged $4500. Each party saved between $15,000 - $20,000. The savings
would have been greater if they had come into mediation before
discoveries. One corporate client recently estimated mediating an
agreement saved $60,000.
- Client satisfaction
FAQS
Mediation is a process which you control which allows you to get
what you want. It works well when all concerned are clear about their
goals and are determined to avoid "soft compromises."
Mediation assists people to make rational choices about their best
alternatives. If you don't get what you want, you can still go to
court. The adversarial system delivers rates of client satisfaction at
about 25% for those who win. Mediation consistently delivers rates of
client satisfaction at better than 80%, even in those relatively
infrequent cases where no agreement is reached. People like being
involved in solving problems; they like being heard and respected by
their opponents, and they like working side by side with their lawyers
while they make the decision.
- Privacy
FAQS
Mediation allows you and your opponent to work out your dispute in
private.
- Timing
FAQS
An Ontario Supreme Court study has proved that mediation settles
cases more than twice as fast as those negotiated by lawyers alone. If
you go to court, you may wait a year or more for a trial date. The
people involved control the timing of the mediation.
- Can
I bring my lawyer? FAQS
Lawyers can be extremely valuable aids to the mediation process.
Counsel can assist their clients to understand the range of options,
weigh alternatives and engage in risk assessment.
- Is
mediation a good choice in my case? FAQS
Mediation is applicable to any dispute. Studies in the U.S.,
Ontario and Saskatchewan prove that it works well in complex matters
involving complicated legal issues and numerous parties, in simple
price disputes, hostile disagreements between two people, and in
preventing court battles over succession, and construction project
fights.
- Relationships
matter - will mediation help? FAQS
Mediation brings people together, no matter how hostile they are,
to work to solve their common problem - resolving the dispute. The
adversarial system drives people apart as each tries to win.
- What
is the difference between mediation and arbitration? FAQS
In mediation you control the process and the decision. In
arbitration you hire a third party to act like a judge to make the
decision for you. The real advantage of arbitration over court is that
arbitration generally happens faster. All the usual restrictions about
rules of evidence, formality, etc. apply. In mediation you control
what gets said and what decision-making process is used. Arbitration
is binding. While most mediations result in agreements, and clients
rate the process highly, if there is no agreement you can still
proceed to arbitration or court.
- We
have an arbitration clause in our contract. Can we still use
mediation? FAQS
Absolutely - providing the other side agrees. Lawyers are
increasingly aware of the advantages of mediation. If your lawyer
proposes it, there is a strong likelihood that the other side will
consent.
- Does
asking for mediation signal weakness? FAQS
Quite the opposite. Think of mediation as a process to help you
get what you want faster and cheaper than going to court. And even if
the other side does suspect the strength of your case, once they get
into mediated discussions, they will see just how strong your case is
and design their responses accordingly.
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Have a question about mediation? Ask Patricia.
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