“Let’s Make A Business Decision, Let’s Mediate”

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“Let’s Make A Business Decision, Let’s Mediate”

By Stanley Zamor

(July 2017)

“Greg, if you would have better advised me of the extensive cost of this litigation, I might not have let it go this far. But now, I am so financially committed, I have to see it through, even though it may bankrupt me…” I stated, “Although you are heavily engaged in litigation, now that you are at mediation, you have a real opportunity to reduce further expenses while reaching a resolution you create…”  Unfortunately, this was a real statement made by a Plaintiff expressing his frustration to his attorney.  The mediation ended, and resulted in a settlement 3 hours later.

The Real Cost of Litigation

We live in a great country where our legal system is not perfect, but is available to those who choose to use it.  So how expensive is litigation anyway? Um, although the initial cost of a civil suit varies depending on the lawyer you choose and the type of case, it is not unusual for either party to spend close to $100,000 in a contentious business lawsuit.  How? Well, a brief example is when taking the deposition of five people, who are potential witnesses:

*  Attorney’s replenishable retainer of $5,000, used for initial costs/filing and commencing discovery of the lawsuit;

*  Attorney charging $300 per hour – research and preparation for five, eight hour witness depositions – $2400 x 5= $12,000.  Further consider the cost of travel and deposition transcripts (usual cost $1000 each x 5= $5,000);

*  Other basics litigation costs include (but is not limited to) hiring expert witnesses; research/study of reports, analysis, or other projects ordered by the court; attorney hourly fees; copy fees; computer legal research services; secretarial and paralegal fees; external consultants, and specialist fees; private investigator, electronic discovery maintenance, and trial demonstrative aids, etc.

 

The Truth Is Real

Unfortunately, even though our civil litigation system is considered to be the best in the world, it is so costly, and the rewards (if any), are sometimes too far delayed to enjoy the benefits.  So that is why mediation is available and the courts are encouraging parties to mediation early as an alternative to trial.  In many areas of the law, like in Condo & Home Owners Association cases, you must mediate before you litigate.

The Cost of Mediation

Contrary to litigation mediation cost fractions less and mediating before you file a lawsuit can save you tens of thousands of dollars.  The comparative math is:

*  Typically, mediators charge $300 per hour for five-hours. (shared between the parties) So, $1500, and you are done!

*  If you have an attorney, add the cost of their time too. Regardless, your cost can be under $3000 and you’ve reached a resolution that you’ve created and controlled. When you litigate you will triple that cost for the uncertainty of an outcome.  Hmmmm…  Make a business decision, you have options.

 

Stanley Zamor is a Florida Supreme Court Certified Circuit/Family/County Mediator & Primary Trainer and Qualified Arbitrator.  Mr. Zamor serves on several federal and state mediation/arbitration rosters and has a private mediation and ADR consulting company.  He regularly lectures on a variety of topics from ethics, cross-cultural issues, diversity, bullying, and Family/Business relationships.

 

szamor@i-mediateconsulting.com

www.i-mediateconsulting.com

www.LinkedIn.com/in/stanleyzamoradr

(954) 261-8600

 

“Getting What You Want in Mediation”

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“Getting What You Want in Mediation”

By Stanley Zamor

(January 2018)

Set The Stage

As the parties entered the room, I stood smiling and welcomed each person as they took their seat around the conference table. I stood at the head of the table and observed the perfectly quaffed group of 10, they all seemed to share the same blank expressionless face. Something recently happened… And that something was not good.  As each side gave their opening statement they mentioned the results of a Summary Judgement hearing that took place just 2 hours prior to the commencement this mediation.  The judge made a partial ruling that both parties claimed to give them some sort of victory.

In brief, for over 3 years of litigation multiple businessmen, in two consolidated cases, spent millions of dollars to prominent law firms to keep pushing their positions until the eve of trial.  But now, after long eloquent statements outlining how the law supports their position(s), I asked them something that seemed to perplex the entire group.  I asked, “Now that we have heard each perspective and how right each party thinks they are; what do you want?…” They all agreed that they wanted finality and (read below for the rest). I said, “Good.  Then let’s get to work…”

At The Ready…

One of the difficult defining points of mediation is to reduce the barriers of communication.  Litigation is innately adversarial in tone and process.  Mediation conversely encourages collaboration while reframing the tone of the dispute, to where parties may feel able to design their own resolution.

Often, once a case is filed in court, disputants never see each other outside of a court related event.  Since mediation is an informal process, disputants have an opportunity to use their own words during mediation in a conversational tone, and not only in the usual adversarial posture.  A skillful mediator can use that opportunity, to shape the discussion to where both parties can feel heard/good about being flexible and seeing where resolution may creatively lie.

Mediation will not replace litigation, it is simply an option that works when parties need an alternative.  Legal rights and duties are important but many times when parties are given a neutral space to express what they want, they are able to resolve issues themselves.

Their Wants:

So, what did these disputants want, and did mediation give to them?  The following are a few of the things that the disputants told me they wanted and after a 5 hour mediation, they created an agreement that was satisfied with:

  • Someone to admit wrong and to be held accountable,
  • To be able to move forward and beyond that business dispute,
  • To take the lessons learned and establish better systems to limit/protect themselves from future litigation,
  • To recoup/cover a portion of monies spent on legal fees,
  • To make more money, smarter.

 

Stanley Zamor is a Florida Supreme Court Certified Circuit/Family/County Mediator & Primary Trainer and Qualified Arbitrator.  Mr. Zamor serves on several federal and state mediation/arbitration rosters and has a private mediation and ADR consulting company.  He regularly lectures on a variety of topics from ethics, cross-cultural issues, diversity, bullying, and Family/Business relationships.

szamor@effectivemediationconsultants.com

www. effectivemediationconsultants.com

www.LinkedIn.com/in/stanleyzamoradr

(954) 261-8600