Arbitration & Mediation

Mediation Shown to be One-Tenth the Cost of ?Full Scale Litigation?

By Christopher Annunziata

Mediators often try to sell their services based on the empirical observation that it is more cost effective than litigation. It would appear that we now have some hard data to back this up courtesy of the Boston Law Collaborative. They conducted a study of 199 divorce cases and found that

mediation, collaborative divorce and litigation all produced high rates of successful settlement. Mediation was by far the least expensive option, with a median cost of $6,600, compared to $19,723 for a collaborative divorce, $26,830 for settlements negotiated by rival lawyers, and $77,746 for full-scale litigation.

I know that selling mediation services based on its cost-effectiveness is a tricky business. Since I consider the lawyers and firms to be my clients, doing so tends to put the financial interests of the lawyer and client in direct conflict. So, I avoid mentioning that point as much as possible. When you have something like this dumped in your lap, however, it is hard not to speak on it. The good lawyers know that careers (and fortunes) are not made on cases, but on good client relationships. Most savvy businesspeople will respect the lawyer who saved them a bundle in legal fees by helping resolve a case through mediation far more than the lawyer who won the huge case but handed then a six-figure bill. And that happy client is worth his weight in referrals and repeat business.

A nod to my friend Geoff for the head’s up on the article.

Full post as published by CKA Mediation and Arbitration Services Blog on January 17, 2008 (boomark / email).