LITIGATION COSTS of €1.2 billion a year could be drastically reduced by the use of mediation, according to the president of the Mediators’ Institute of Ireland, Karen Erwin.
She called on all Government departments, State agencies, local government bodies and semi-State organisations to introduce immediately a policy that mediation be the default position for dispute resolution.
The Courts Service annual report for 2009 showed the amount of costs claimed in relation to civil cases was just under €63 million, Ms Erwin told a weekend conference in Dublin.
As this was only the costs of one party, the real figure could be doubled. In addition, about 90 per cent of cases settle without going to court and therefore without costs being claimed officially, so the true cost of litigation is likely to be about €1.2 billion.
Urging all public bodies to seek mediation as the first option, she said that proceedings should not be issued until that avenue had been explored. While mediation will not be appropriate for all matters, it could be used in the vast majority.
However, the costs of conflict are not confined to the legal costs, she said. To this should be added the time spent by those involved in the dispute and the human cost of the conflict both for those directly involved and those associated with them.
“With mediation the whole dispute process concertinas and the parties can meet and resolve the matter within weeks. This reduces the professional fees, cuts down the time spent by the parties on the dispute and reduces the stress to those involved.”
She said more pieces of legislation provide for the use of mediation. The latest Rules of the Superior Courts provide for the court to order that proceedings be adjourned so that the parties can use an alternative dispute resolution process. These rules will come into force on November 16th.
This means the judge can take an active step in encouraging parties to try to resolve their issues through mediation, and was likely to lead to more cases being mediated, Ms Erwin said.
In addition to applying mediation to dispute resolution, mediation skills can be put to good and effective use in dispute prevention, so that an ultimate showdown becomes unnecessary. This was particularly useful in the workplace where downsizing or other changes are taking place.
“At no time are mediation skills more called for than now. We live in difficult times and, as we know, things are going to become increasingly difficult in the future,” she said.