Posted: Tuesday, 28 February 2017 @ 11:49
With respect to litigation costs
the assertion by the mediation industry that mediation presents costs
savings by comparison with full blown litigation costs is based on the
assumption that the mediation will be successful.
On the negative side, mediation can be costly due to the following:
is become more sophisticated in the hands of lawyer representatives. To
get the most out of the mediation process, representatives should approach
mediation in the same way as a preparation for trial such as with a
pre-mediation conference. This can include preparation of a case summary.
As a consequence the costs of the mediation can be high.
of physical time of the mediation.
Even mediations which start early in the morning may not finish
until the late in the evening.
be hidden costs connected with the mediation for management such as time
spent away from the office.
arbitrations, the parties may be contributing to the cost of the venue and
be ancillary costs which could be payable to the mediation provider or the
mediator such as costs of catering and photocopying.
However, mediations can be cheaper than litigation and the flexibility
of the process is why costs savings can be achieved:
of the process restricts the level of chargeable time.
absence of formal structure means that the parties are free to choose the
procedure, including the level of formality.
mediation is not a trial or a tribunal, evidence, disclosure and documents
are substantially are reduced and can be removed.
no costs associated with the delivery of a judgement or an appeal or a
All these are variables which the client and the lawyer need to consider prior to agreeing to mediation. It is a risk. It is quite useful(if time and cost are not a factor) for the client and the lawyer to weigh these options up together prior to agreeing to mediation.