Mediation and Alternate Dispute Resolution is Often Better than Trial
The average jury trial in California is three to seven days long. The average lawyer in California bills $586 per hour. That means, if you are paying your lawyer hourly and your trial only goes three days, that would cost you over $17,000 for your trial, win lose or draw. And that does not include any trial preparation, the final status conference, the mandatory settlement conference and anything that could (and does) happen after the verdict.
If you are not paying your lawyer hourly and they take a percentage of the recovery, you may be better off…If you win. If you lose, you get nothing and pay court costs, along with the out-of-pocket expenses of the lawyer. That’s if you are lucky. If you’re not lucky, you may also get stuck with the costs for the other side’s experts and other expenses.
That’s before we talk about the value of your time. Many of us have jobs, families and other responsibilities. When we are in trial, we are really “in trial”. You and your lawyer will need to present for every hour of every day of the trial. That means if your trial is in downtown LA, you need to be in downtown LA, every day for three to seven days. That’s from 8:30 in the morning until 4:30 in the afternoon.
There has got to be a better way. And there is. It’s called Alternate Dispute Resolution. There are many people who work in this field. There are many large companies that dominate this field. Companies like JAMS, ADR Services and AAA (not the Auto Club) have a big presence in the industry. They have offices in fancy buildings, they hire a lot of retired judges, and they charge horrific hourly rates. And even this is better than trial, and here’s why:
The cost of mediation or arbitration normally gets split between the two sides. So, even if the hourly rate of the mediator is $1,000 per hour and they have a four hour minimum, that’s only $2,000 per side. If you can settle your claim, avoid a trial and get out of the case for $2,000, that’s not a win, it’s a steel!
Some cases take longer than four hours to resolve. Some complicated cases may take multiple sessions or even multiple days to resolve or to arbitrate. But the numbers still work. And, even in a worst case scenario, you will likely end up much closer to a resolution than you were before the mediation or arbitration.
What’s the difference between mediation and arbitration? Mediation is typically less formal than an arbitration. It usually involves a neutral mediator bouncing back and forth between the sides to try and find a middle ground where the case can resolve. An arbitration takes place in a more trial-like atmosphere. However, there is no courtroom. There is no jury. There is just an arbitrator or neutral party who will hear all the evidence, make evidentiary ruling and ultimately decide the outcome of the case.
Another option for case settlements by a neutral third party is called a Neutral Case Evaluation. Many times parties and even their lawyers are too close to a matter at hand to be impartial. We all want to win, and we all want to get everything we can out of a case. Either that or we want to prevent the other side from getting anything out of a case. In either event, it is fair to say that we cannot be impartial about our own cases. Lawyers try to be impartial, but they have their time and often a great deal of their own money invested in their cases. Thus, they too may get clouded by their passion or desire to win. If an experienced neutral looks at a case, they have no skin in the game. They are guided by only their experience and what the party(ies) tell the neutral about the facts of the case. Typically, such an evaluation is done without the emotional aspect of getting the two sides together. And, when the valuation comes, it is truly neutral and impartial as well as fast and cost-effective.
This leaves only one more thing to talk about in this article: Who is the right neutral? Clearly there is only one answer: The one who can settles your case. Do you go to the high rise firm charging high rise fees? Do you go to the little guy who isn’t a retired judge? The answer, like so many in the legal field is: It depends. First, both sides have to agree on the neutral. Next, you must consider your budget? How much is the case worth? Are you looking for an environment which makes both sides feel comfortable and eases them into a resolution or do you need a stubborn old guy to yell at you and tell you how it’s gonna be?
Finding the right neutral is a complicated decision. Take your time, choose wisely. You won’t be sorry. Whatever you do, hire someone with decades of local experience. Hire someone you speak to personally. Don’t let a Google search lead you to the person with the best SEO program.
If you or someone close to you has a dispute they want to settle, call a Certified California Mediator who has the tools and experience to help.
Attorney Jeffrey Vallens (818) 783-5700 or email me: vallenslaw@yahoo.com