Can Cut Litigation Time & Costs

Because of the drawbacks of being involved in a lawsuit, many businesses and individuals are using mediation and arbitration, called collectively “alternative dispute resolution,” to resolve disputes.

Attorney Barbara Moss, an attorney at Norris & Norris is a sought-after mediator and is recognized as a member of the Tennessee Academy of Mediators and Arbitrators. She frequently arbitrates disputes for the American Arbitration Association. She is highly skilled at both mediation and arbitration.

Lawsuits are time consuming. The average time for a civil lawsuit in America to reach trial or settlement is three years. During that time, the executives of a company, and any employees who are witnesses, will periodically be tied up in the process of litigation instead of running the business.

Lawsuits are also expensive. The costs of executive and employee time, as well as attorneys’ fees, can be quite substantial. In fact, Voltaire said, “I was never ruined but twice: once when I lost a lawsuit and once when I won one.”

Mediation is a settlement process conducted by a neutral person. Typically, a mediator is selected and each party submits a confidential statement describing the dispute. The mediator may ask the parties, for example, to describe the strengths and weaknesses of their cases and give a history of any settlement discussions.

The parties then meet, usually at the mediator’s office, to try to settle the dispute. After considering what the parties have said, the mediator may suggest a settlement, but the parties retain control of whether the case settles and on what terms.

Mediation is either organized by the parties or may be required by the judge in an underlying lawsuit.

Arbitration is more like a private judicial proceeding. An arbitrator supervises the process of preparing a case and then holds a hearing where witnesses testify and documents are introduced into evidence.

Arbitration is sometimes more expensive than a lawsuit because someone must pay the fees of the arbitrator. If the dispute is between an employee and an employer, the employer will usually bear that expense. If in other situations the parties agree to arbitrate their disputes, each might pay a portion of the arbitrator’s fees or the arbitrator might decide at the end of the hearing which party will pay.

The parties may consent to arbitration, or can require it in the contract that governs their relationship. Employers can, for example, require their employees to consent to arbitration as a condition of employment or continued employment.

Arbitration is private and usually more expeditious than a court proceeding. Many businesses prefer arbitration, however, because it avoids the uncertainty and higher cost of a jury trial.

The drawback to arbitration is that participants must abide by the arbitrator’s decision. There is rarely any right of appeal such as one would have in a court case.

There are organizations that administer arbitration proceedings. The best known of these is the American Arbitration Association, but there are others. A binding agreement to arbitrate a dispute is tricky and should be drafted by a lawyer.

Mediation and arbitration are popular because they work. They can trim time, expense, and risk for businesses in many types of disputes.

Call attorney Barbara Moss at Norris & Norris PLC (615) 627-3959 to help with your mediation or arbitration.