Save on Civil Litigation Costs With Alternative Dispute Resolution

Civil litigation can be a long, expensive, and often unsatisfying experience. In addition to attorney’s fees, you are also looking at other costs, such as filing, copying, expert witness, and court reporter fees, etc., along with your time. Plus, you may not get what you want out of it and end up owing the other side money if the judge or jury side with the other party.

According to a Duke Law School study, between 2000 and 2008, the average cost of litigation for corporations increased from $66 million to $115 million. That number does not include judgments or settlements. 

Often, indirect costs, such as keeping key personnel from productive activities, tarnishing reputations, and destroying profitable relationships with former business allies, push that cost even higher, according to Harvard Business Review.

While you may not be able to avoid a lawsuit, you can often control those costs by working with an experienced attorney, like the team at Bingaman Hess. Our goal is to resolve your legal disputes as efficiently as possible, which is why we are often able to resolve your legal disputes outside of court, saving you both time and money.

How do we do this? We use something called Alternative Dispute Resolution whenever possible. Alternative Dispute Resolution (ADR) uses alternative methods – outside the court system – to resolve legal disputes. Some of those methods include settlement negotiation, mediation, and arbitration. 

In a settlement negotiation, the two parties work together to resolve the legal dispute outside of court. That could mean a discussion or a letter explaining the problem and what you want or feel you are entitled to. It may include notifying the other business or individual that you are considering a lawsuit if you cannot resolve the dispute through negotiation. 

If the two parties can negotiate a settlement, they should both sign a detailed settlement agreement that outlines all of the terms. If one party does not do as promised, the other party can sue them. It is even possible to structure the agreement so that it becomes a court judgment if the party does not do what was promised in the signed agreement.

With mediation, a neutral third party (mediator) facilitates a discussion between the parties and tries to help them negotiate a resolution. The mediator – often a trained professional who understands different mediation techniques - does not make decisions regarding the dispute but encourages both parties to reach an agreement that is acceptable for both parties. 

If the two parties can’t come to an agreement, the dispute can move on to arbitration or court. 

The significant advantage of mediation is that if successful, both parties receive a satisfactory resolution to their legal dispute. Often, mediation is the least expensive ADR method and can often preserve the relationship between the two parties. The disadvantage of mediation is that it is nonbinding.

With arbitration, a third party (the arbitrator) listens to each side’s argument, reviews relevant evidence, and makes a decision about the dispute – similar to a judge. It is typically less formal than litigation and is based more on facts than on legal issues. 

Arbitration can be simpler, faster, and less expensive than taking a dispute to court. In lower-dollar-value cases (typically under $50,000), your case may be placed in the court’s mandatory arbitration program. 

The decision made by an arbitrator is binding and can’t typically be appealed to a higher court. Again, it is a less expensive alternative to civil litigation. 

An expensive and time-consuming trial in court can often be avoided with one of these alternative dispute resolution methods, saving you both time and money and often frustration or disappointment. 

If a legal dispute cannot be resolved using an alternative dispute resolution method, you will want an experienced lawyer to represent you in court. Bingaman Hess’s team of litigation lawyers know how to build a strong case on your behalf and will aggressively represent you in court to produce the best possible result for you.

If you have a legal dispute that needs to be resolved, give Bingaman Hess a call at 610.374.8377 or find us online. One of our experienced litigation attorneys can help.