Cost-Effectiveness Of Mediation

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4.0 The Cost-Effectiveness of Mediation & Affordability 4.1 Cost-Effectiveness Mediation being an informal procedure, it has a less adversarial nature. Hence, mediation is considered as an efficient and cost-effective means of dispute settlement in general. Mediation is a mode of alternate dispute resolution which enables the public funds to be saved and also bolster the economy. In this sub-chapter, we will have a further look on the cost-effectiveness of mediation through medical negligence. 4.1.1 Mediation saves government court administration costs The government court administration costs can be saved through mediation. this is because, when a conflict is resolved before a court action is commenced, this causes most of the conflicts …show more content…

This reduction is beneficial for both the parties. Mediation may actually be considered as a financial burden for the parties’ attorneys, however it is the other way round for the parties involved . This is due to the fact that the preparation fro mediation is shorter than the preparation for litigation, and therefore it will amount to lesser billable hours for the clients. Other than that, another reason for the reduction is cost is because when the parties decide to hire or consult expert witnesses during mediation, the fees would be lesser as the expert witnesses will not need to testify in court. However, it would be otherwise in litigated claims. A study was done with regards to the “transaction cost” of litigation which found that those costs “often consume about 3% of the plaintiff’s ultimate recovery” . However, while using mediation in alternate to litigation, the defendant may be able to settle for a lower amount. This is due to the “transaction costs” related to the malpractice claim have been reduced or eliminated by the decision to mediate , thus allowing the plaintiff to be made whole for a lower amount of

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