Mediation Takes Too Long and Is Very Costly -- Fallacies about Mediation

Not long ago a friend complained that his lawyer was pushing him to resolve his business dispute through mediation.  He said it would take forever and cost too much money.   A relative who was going through a divorce thought that mediation would be a free way to resolve things and that it would take less than a day.   How can these views be reconciled?  What do people really think – or know – about mediation?  How often is it confused with arbitration?

Simple facts about mediations:

• Although not free, it is still the best way to resolve disputes in a cost effective manner.  Still, it is important for clients to understand that they will have to pay not only the fees of their attorney, but also pay for or share the cost of the mediator. 

• Mediation may last more than a  few hours, but it is efficient. Although most mediators will set aside most of a day for the actual mediation, there are many instances when the matter will not resolve and the mediator will continue to try to settle a dispute for days or weeks.  Typically though – we are not looking at a mediation that last years. 

• The parties decide their own fate. Unlike arbitrations, the mediator does not render a decision.  As previous blogs have pointed out, whether the parties decide to resolve their dispute is totally in their own hands.  No one – not the mediator or the attorneys or even the court where the matter is pending – can force parties to settle.

Attorneys should be prepared to explain what a mediation is, and the pros and cons – and costs – of a mediation.  Attorneys should not assume that even sophisticated clients understand the intricacies of mediations.