Legal News

Alternative Dispute Resolution - Mediation

By (Click The Law)

Illinois Business Attorney

Small business owners are constantly evaluating new ways in which to control costs, reduce overhead, and increase profits.  Unfortunately, disputes are an inevitable consequence of operating a business and sometimes this results in costly litigation.  However, given the fact that roughly 95% of all lawsuits eventually settle, it is important to consider your cost-saving alternatives before rushing to the courthouse.

Alternative Dispute Resolution generally refers to either Arbitration or Mediation.  Arbitration is generally the more formal of the two and is usually associated with a binding ruling.  On the other hand, Mediation is usually non-binding and much less formal, often held in a conference room setting.  This discussion will focus on the process of Mediation.

Mediation can either be ordered by a court or initiated by individuals - even if a lawsuit is not pending.  The Mediator is selected from a pool of candidates by mutual agreement of the parties and is usually a retired judge with at least 15 years of experience hearing cases similar to yours.  The process usually begins with the parties providing a joint submission to the Mediator that sets forth the undisputed facts of the case.  Most Mediators charge by the hour and the parties usually split the cost equally.  

After evaluating the joint submission, the Mediator usually will hold a scheduling conference call.  This will either take place between the attorneys,  or the parties if they are not represented by counsel (generally not a good idea).  During the conference call, the Mediator will usually not discuss the merits of the case beyond what is needed to estimate the length of the mediation.

Once the mediation is scheduled, the parties will appear and usually meet separately with the Mediator after which a joint session will be held.  The rules of evidence are greatly relaxed in a mediation, and depending on the complexity of the dispute, there may or may not be testimony of outside witnesses. 

Upon conclusion of the mediation, the Mediator will usually submit an opinion.  This opinion can serve as a glimpse to what the parties can expect at trial.  Sometimes this is enough to result in settlement.  However, other times if settlement is not possible, it can serve as an informal pre-trial of the disputed issues.   

If you are engaged in a business dispute, you need to consider all of your options prior to filing a lawsuit.  Or, if you have been sued, it is usually a good idea to consider mediation early in the process to avoid the costs of litigation. 

At Roth Law Group, LLC, we have experience mediating business disputes and are available to discuss your legal options at 312-419-9599.  

Full post as published by Click the Law on February 25, 2010 (boomark / email).