When Should You Mediate A Legal Dispute?
Being involved in a civil lawsuit is rarely anyone's idea of a good time -- regardless of whether you are the plaintiff or the defendant. However, even after a case has been filed, there are several lower-conflict resolution alternatives available, including mediation and arbitration. How can you determine whether one of these methods is suited to your specific case? Read on to learn more about mediation and arbitration, as well as when you should request one of these methods for your own case.
What is the difference between mediation and arbitration?
Although these terms are often used interchangeably, they have very specific meanings.
Mediation is an attempt by a central neutral party (the mediator) to resolve certain issues outside of litigation. In many cases, even a successfully mediated case is still litigated. However, the mediation may cut down the number of issues that need to be litigated, limiting the court time spent on the case, as well as the financial outlay for each party. Mediation is nonbinding, and the parties are not required to adhere to the mediator's suggested resolutions. Although the mediator may be an attorney, this is generally not required.
Arbitration is a binding form of mediation. When parties submit to arbitration, they are essentially signing away their rights to litigate the case. In many cases, unlike a court ruling, an arbitration ruling is not eligible for appeal. In most states, arbitrators are required to be licensed attorneys, as they are rendering legal rulings. Many of the court shows on daytime television are actually arbitration proceedings.
When should you choose mediation or arbitration?
Because of the nonbinding nature of mediation, it is much more commonly used in civil litigation than arbitration. You may wish to request mediation if your case involves a number of complex legal issues, or if you believe that you and the other party may be able to come to some sort of resolution. Generally, the mediator is paid an hourly rate, and this cost may be split between you and the other party or fully paid by either of you.
In many disputes, the decision to seek arbitration is taken out of your hands. If you read the fine print of many consumer purchase agreements, you will find that your purchase of the product has constituted consent to arbitration for any defects in the product.
Outside the consumer context, you should only request arbitration if you are confident that the facts of the case are fully in your favor, or if you have no plans to appeal a ruling against you. Although arbitration is nearly always less expensive than litigation, it does involve some waiving of your legal rights. For more information, contact a lawyer at Morgan Law PLLC.
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