Mediation presents a cost-effective alternative to the litigation and trial process. A successful mediation will result not only in settlement of claims, but also termination of the underlying lawsuit.
Mediation provides a process for prompt resolution of disputed claims. It is quite common for civil cases to continue for years with transaction costs mounting during that entire period. Mediation provides certainty of results without the time and expense of trials and appeals.
Mediation permits the parties to eliminate risk and exposure. In litigation, one party “wins” and one party “loses”. Mediation often results in a “win-win” as the voluntary settlement has been determined by, and is acceptable to, all stakeholders.
Mediation allows “out of the box” agreements and settlements. In litigation, legal claims are often limited by the nature and type of relief (e.g., money damages as exclusive remedy). In mediation, solutions are limited only by the creativity of the participants. Mediation remedies can address past issues, assist to preclude issues arising again, and even set the framework for new or different relations between the parties.
Mediation is confidential. The parties cannot use mediation discussions, statements or settlement positions beyond the mediation process – in litigation or otherwise. Confidentiality encourages parties to candidly and openly discuss issues and evaluate proposals without concern that the information could be used against them.
Mediation better ensures that the parties’ voices will be heard. In litigation and trial, the “stories” of the parties may be limited in presentation by rules of evidence, rules of procedure, or rulings by the court itself. Mediation provides a forum for each party to express views and explain the importance of issues and concerns.