Q: Is litigation, arbitration, or mediation a more favored method of resolving a dispute?
A: There are many variables to consider when determining which resolution method is best for your firm, and even for a particular project. Find a knowledgeable attorney to help you evaluate the impact of time, cost, relationships, confidentiality, governing law, and the appeal process. Remember, though, that many defense attorneys are generally not in favor of arbitration and tend to favor mediation as a first step to resolution.
Also keep in mind that your RLI professional liability insurance policy provides an incentive to mediate—a reduction in your deductible obligation (up to $12,500) if a matter is resolved, with RLI’s consent, through mediation.
Q: What are some advantages of mediation?
- Cost: Usually the least expensive option
- Time: Able reach a resolution sooner
- Environment: More productive environment
- Non-Binding: Other avenues available
- Relationship: Usually the relationship is preserved
Q: What are some keys to avoiding disputes?
- Don’t avoid (or ignore!) a budding dispute
- Document communications
- Set realistic expectations
- Be willing to compromise