Alternative Dispute Resolution

Is it worth it to have a mediation clause in a contract. Most if not all contracts these days have a clause that requires parties to mediate before going to trial. Is it worth having this clause considering how many parties file law suits. Yes it is worth it. 98% of all matters are usually settled. The mediation clause is designed to get the parties to talk so that the possibility of litigation can be avoided. Today in Arizona the average cost of going to trial is approximately $85,000.00 this is an average so some case are lower and some are higher. Mediation can save you thousands of dollars in legal fees. Mediation is usally done with a netural third party agreed upon by the parties themselves or their attorney’s. In a mediation the parties will each give concessions but in the long run can usually come up with an agreement that both parties can live with and perform their respective duties.

When I clerked in the Hartford, Conn. court system a judge who handled required mediation had a saying that it is better to come up with an agreement between the parties then let 12 strangers decide what each party should get.

So check your contracts see if their is a mediation clause. this can protect you if a prospective opponent wants to sue you then you can force them to mediate they must exhaust all methods of alternative dispute resolution listed in the contract before going to trial.

In fact, in Arizona if the amount in controversy is worth less than $50,000.00 the courts will require you to attempt mediation or arbitration to resolve the matter. Because litigation is getting very expensive there are many companies that offer mediation services. The American Arbitration Association offers people who have experience in all fields. make sure when chosing a mediator they have a background in the field of your dispute. for example if it is construction make sure they have some construction knowledge, or if its business they should have basic knowledge of business techniques.

If you have a dispute and you want to resolve it without going to litigation you can contact the Law Offices of Marc C. Paquette, PLLC to help with alternative dispute resolution.