MEDIATION, INC.

A Few Words About the Cost of Mediation in a Civil Lawsuit

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In the fifteen years we have been active in providing quality mediation services to the courts and attorneys, we have tried to price our services fairly. Our goal is to provide the highest quality mediation services at a price that delivers true value to the attorneys and their clients, while allowing the mediators to be fairly compensated, the administration to be done flawlessly and the facilities to be appropriate to their function.

I feel we have been extra selective in choosing the attorneys we train to be mediators. It is our goal to have only experienced trial attorneys and former judges on our panel. They have to be fairly compensated in order for them to be attracted to this special area of practice. We choose attorneys and former judges who have been successful in their career endeavors. All of our mediators are either former judges or experienced trial lawyers. Hopefully, you will agree we bring ability, experience, training, diligence and creativity to the task of leading your mediation conference.

All of our facilities are private. We do not have the use of public facilities. Even though the work we do has a positive impact on the court system, we do not receive any subsidy or revenue from the court or any other governmental entity.

In even a routine civil case, the expenses faced by the parties are formidable. In addition to each party paying their own legal fees, the out-of-pocket costs for ancillary charges is a large expense factor. For instance, the customary charge by the court reporter for a deposition in a routine case is more than $300 for a 50 page deposition. It costs $220 to just file a suit and get one defendant served. In the simplest injury case, an independent medical examination and issuance of a report is at least $1,000. All of these expenses are necessary to the overall preparation of the case, but they do not cause a definite result.

By contrast, a properly conducted mediation conference in a case has at least a 70% chance of producing a settlement. That is certainly a definite result. When a settlement is achieved, the cost saving value of the conference far outweighs the cost. The per-party charge for the conference in a routine case is usually less than the cost of the next deposition. The charges for the mediator are split between the parties.

Our charges for a mediation conference are now based on an hourly fee for the mediator, together with an administrative charge of fifty-four dollars per side. The mediator charges for the actual time spent in the conference, together with any time spent reviewing the file in preparation, generating reports to the court and for any necessary later telephone conferences with the parties to achieve a settlement.

We are in the business of promoting settlement of cases, so if the case is settled just before the conference, or if the case is cancelled by mutual agreement and is reset, there is no charge for the cancellation. Absent exceptional circumstances, there is a minimum of two hours for a conference.

The attorneys are responsible for making prior financial arrangements with their clients or escrow arrangements to pay the cost of mediation. The cost of the conference will be billed to the attorney and the mediator looks to the attorney for payment since the mediator has no way of knowing the client or judging the creditworthiness of the client. Charges are due upon receipt of the invoice. Interest may be added to overdue accounts after 60 days. The party or counsel may pay these charges by credit card if it is convenient for them. Please advise our receptionist before the conference that a credit card will be used and she will make the appropriate arrangements.

Mediation, Inc.

James B. Chaplin, President