What is mediation?
- Mediation is an informal process where an
impartial third party helps disputing parties to
find mutually satisfactory solutions to their
differences. Mediation can resolve disputes quickly
and satisfactorily, without the expense and delay of
formal investigation and litigation.
Mediation proceedings are confidential and voluntary
for all parties. Mediation typically involves one or
more meetings between the disputing parties and the
mediator. It may also involve one or more
confidential sessions between individual parties and
the mediator.
Mediation is neither therapy nor a "day in court."
Rather, mediation should provide a safe environment
for the parties to air their differences and reach a
mutually agreeable resolution. Mediators are NOT
judges. Their role is to manage the process through
which parties resolve their conflict, not to decide
how the conflict should be resolved. They do this by
assuring the fairness of the mediation process,
facilitating communication, and maintaining the
balance of power between the parties.
Representation by an attorney is permitted, but not
required, in mediation. While mediators may not give
legal advice or interpret the law, they will refer
parties to impartial outside experts within the
disability and legal communities when questions or
issues needing clarification arise.
A successful mediation results in a binding
agreement between the parties. If mediation is
unsuccessful and an agreement can not be reached,
parties may still pursue all legal remedies
including private lawsuits.
What types of disputes can be resolved through
mediation?
- All kinds. Mediation has been successfully used
for small claims disputes, commercial and business
disputes, construction issues, employee grievances,
environmental claims, professional malpractice
allegations, product liability claims, insurance
coverage disputes, real estate disputes, partnership
dissolutions, divorce, family, and adult
guardianship/elderly care disputes, Gay/Lesbian,
domestic relations matters, and workers'
compensation claims.
It makes no difference whether liability is admitted
or hotly contested, whether the case is in
litigation or not yet filed, or whether the dispute
involves a few thousand dollars or many millions of
dollars or issues other than money--mediation has
proven effective in all of these situations.
What are the benefits of mediation?
- Settle disputes now. Almost every case
will settle prior to trial. So the real issue is not
if a case will settle, but when. A mediation session
has the effect of getting settlement negotiations
focused much more quickly than if the case proceeds
to trial. Proposing mediation is an excellent way to
get settlement discussions moving in the right
direction and away from court.
- Save money. An early settlement naturally
saves litigation expenses and other costs related to
managing the dispute.
- Maintain control. Mediation differs from
arbitration or trial because the mediator does not
make a decision or force any party to accept a
settlement. When you agree to mediate a dispute, you
are only agreeing to attend the mediation session
and participate in a good faith effort to settle the
matter. Consequently, you are always in full control
of the outcome.
- Informally explore settlement options.
Because of the confidential nature of private
meetings, often referred to as 'caucuses,' the
mediator can explore settlement options without
exposing your final position. This can remove the
"posturing" that takes place during traditional
negotiations.
- Organize multiple party negotiations. The
mediator can play a major role in simply organizing
the discussions. The mediator can work closely, and
confidentially, with each side to explore settlement
possibilities and put a settlement package together.
- Preserve continuing relationships.
Mediation is particularly appropriate in situations
in which the disputing parties will be working
together after the dispute is resolved. Some
examples include family relationships, construction
projects, commercial leases, partnerships, business
suppliers, and employment relationships. Mediation
allows the parties to stay on the best terms
possible by doing everything they can to settle
their dispute as quickly and easily as possible.
How is a mediation case started?
- Typically, one party to a dispute will contact
our office to initiate mediation scheduling efforts
or propose mediation to the other parties. As a
general rule, the parties have discussed the
possibility of mediation prior to contacting our
office, although it is always an option to have
First Choice Mediation initiate the contact about
mediation. In some situations, First Choice
Mediation, as an impartial neutral, might have a
greater chance of gaining the parties' participation
in mediation. Because mediation is such a sensible
process, we are usually successful at convincing
everyone to participate.
What takes place at the mediation session?
- All parties to a dispute will be present at the
mediation session. For example, participants in a
typical personal injury case usually include the
plaintiff and the plaintiff's counsel, an insurance
company representative, possibly a defense attorney,
and the mediator. In a commercial case, the owners
and/or managers would attend, along with their
attorneys.
- All parties, representatives and the mediator
first meet in a joint meeting format. After
introductory remarks by the mediator and the signing
of the Agreement to Mediate (if not already signed
earlier), each party is given the opportunity to
explain its position in the presence of the other
participants. These short and informal opening
statements, typically no more than ten to twenty
minutes long, are a starting point for the mediator
to gain an understanding of the case.
- After the joint session, the mediator may meet
with each side individually. These separate
meetings, called caucuses, are confidential. In each
caucus, the mediator will explore possible
settlements. It is common for the mediator to go
back and forth between the parties for a number of
private meetings, just as the mediator may bring the
parties back together for joint discussions. If the
mediation results in a settlement, the parties may
choose to draft a formal settlement agreement.
What if the case doesn't settle?
- Most cases will settle at the mediation session
or shortly thereafter. If a settlement is not
reached at the mediation session, the mediator may
continue the discussions by telephone, and in some
cases the parties may elect to have a second
session. If a full settlement is not reached, the
parties are free to pursue other options such as
arbitration or litigation.
How to prepare for a mediation session
- Preparing for a mediation session is much easier
than preparing for an arbitration or a trial:
- There are no pre-session pleadings required,
although in a more complex case the parties may
wish to furnish the mediator with a short brief
or explanatory documents that were prepared for
another purpose.
- Prior to the mediation session, all parties
should have obtained sufficient information to
make settlement decisions. It is common for
FIRST CHOICE MEDIATION and/or the mediator to
help with informal information exchanges. Please
make FIRST CHOICE MEDIATION or the other parties
aware of any information you need prior to the
mediation session.
- A critical element of a successful mediation
is that each side must be represented by a
person with adequate authority to settle the
case. This typically means that clients,
business managers, etc., should attend.
- A ten to twenty minute opening statement
should be prepared. Keep in mind that this is an
excellent opportunity to talk directly to the
other side. Representatives should consider
whether their clients should participate in this
presentation (e.g., how the accident or dispute
has affected them).
- Obviously, you need to be prepared to
discuss the details of your case. Have quick
access to needed information.
How much will mediation cost?
- FIRST CHOICE MEDIATION charges a basic
administrative fee and hourly or per diem fees for
the mediator's time, which will be pre-collected at
the time of scheduling or billed after the mediation
is concluded.
- In many cases, the parties agree to divide the
mediation costs, although it is not uncommon for one
party to pay the entire cost. There must be a clear
fee agreement prior to the mediation session taking
place.
How is mediation different from arbitration and
settlement conferences?
- Arbitration involves the presentation of
evidence to an arbitrator for a legally binding
decision. Arbitration can be effective, but it is
generally more time consuming and expensive than
mediation, plus the parties give up control of the
outcome (although high-low agreements can be used to
provide a limited range for the decision).
- In a judicial settlement conference, parties
submit informal evidence to a judge for an advisory
decision. However, any time an outside party is
rendering an opinion, particularly about case value,
there is a risk that one party will strongly
disagree with the opinion and the other party will
be locked in to a settlement at that figure. This
can actually impair further settlement efforts.
Remember that almost every case settles anyway, so
the role of the neutral should be to help parties
move toward settlement. For this reason, mediation
is often preferred to arbitration or settlement
conferences.
|