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How Much Money Does Mediation Save Companies?

By turning their faces from the legal system, many companies have saved fortunes in the money and time that legal proceedings require. Instead of litigation, many companies are turning to mediation, and they have been able to resolve their issues within a few weeks instead of the months and years that it may take to address the same issues in court. 

Companies are also taking the step to bring in mediators to resolve problems between employees before it escalates. These mediators are also training managers to play the role of mediators when handling internet disputes in the company. 

The truth is that half of the cases that go to court can be solved far sooner, more efficiently, and cheaper through mediation, which companies have come to realize. As the value of mediation rises among companies, there are far lesser needs to go to court. 

An example is in the case of business partners looking to go their separate ways. Rather than fight about the business assets and drag themselves to court, they decided to use the services of a mediator to create an exit strategy for them. The entire process cost them a mere $10,000 and involved six sessions over eight weeks. They found mediation not just to be 80% cheaper than litigation, but it is also private and fast. Both parties got the exit cheaply, quickly, and amicably in a win-win situation through a mediator. 

According to essay help, mediators mostly have a background in law, counseling, and psychology. Mediation does not require certification, and it varies across industries, from training sessions spanning 40 hours to alternative dispute resolution programs that are university-based. 

In most cases, the fees are hourly, but some mediators charge fixed rates. The price also reflects the cost of other services that the mediator offers. For instance, a mediator with a law degree is likely to charge higher than one with a social work background. Each mediation session only lasts some hours. However, the mediation may run for weeks or months, and this also affects the overall cost. 

It is clear that mediation helps businesses save more money compared to litigation, but how? You are probably wondering if there is enough reason to show that mediation is better than litigation. Below are some of the benefits of mediation for a business and how companies can save money with it:

  1. You have control: in litigation, the judge declares a limited solution to the parties so that one person wins and the other loses. You can never tell in what direction the judge will rule. However, mediation seeks to support constructive dialogue, and both parties are coached to reach a solution that they can settle with that meets their mutual interests. As stated in a pro essay writing service, the parties must determine the outcome without the mediator adjudicating. 

  2. Save money: this is the most obvious benefit. A seven-hour mediation may cost less than $7000. Meanwhile, to issue a court claim worth between $10,000 and $100,000, the cost is 5% of the claim’s value. This money makes a huge difference, especially for companies, since their claims are likely to be on the very high side. The cost also does not include the hourly rate that the solicitor charges, which may vary based on the solicitor and their experience level. 

  3. Confidentiality: court judgments are often made available to the public, which may damage the company’s reputation and expose some trade secrets that can serve as precedents to attack the company further and lead to more financial loss. However, mediation is very confidential, and only the disputing parties are involved with the mediator. All information is confidential and out of media reach, ensuring the safety and protection of sensitive company information. 

  4. Maintains good relations: mediation ensures that everyone is happy. You may not see the need to save the relationship. Still, you do not want to have a disgruntled employee leave your organization to put out complaints on social media that can stain the organization’s rep. Also, you may want to maintain good relations with the party you’re currently disputing with. According to essay writers UK, mediation ensures that the relationship is good afterward; however, court proceeding almost always obliterates goodwill and trust. With mediation, you can build communication and trust again during the process and maintain the relationship afterward. 

  5. Save time: mediating a conflict between two parties saves far more time than you can imagine than a court proceeding. In some cases, it may be possible to resolve long-standing disputes within a day, depending on the willingness of the disputing parties. 


Mediation is a far better route for companies to take to resolve disputes than litigation. It allows you to take charge, ensures confidentiality, saves time, and most importantly, is far cheaper, so you can save yourself some thousands of dollars. 


John Peterson

John Peterson is a journalist with 4 years of experience working for the London magazine “Shop&Buy”. He was a straight-A student and recently earned his master’s degree in psychology. When he is not writing interesting articles on the internet, he provides his talent to an essay writing service. John loves… MORE >

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