“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
