What Is The Average Settlement Amount For Mediation?

mediation compensation value

If you are trying to find out what is the average settlement offers during mediation, then read on to find out!

Mediation is a meeting where a mediator tries to help two opposing parties to a lawsuit to reach an understanding and resolve their differences. By doing this, the lawsuit is settled without it going to trial.

Such a meeting is neither a hearing nor is its arbitration. In this type of meeting, the mediator does not decide the plus points of the case but helps both parties to come to the negotiating table and agree to a settlement. The mediator can’t take sides, he needs to be objective. In such a scenario, he points out the leading issues in the case or its minus points and puts forth reasons for settling. However, both parties have to voluntarily agree to settle; he cannot force either of them to accept the compromise suggestion.

Why Cases Are Mediated?

Mediation is so common that even judges often order both parties to a lawsuit to mediate their case before it reaches the trial stage. That’s because judges believe in the power of mediation and, in fact, several personal injury cases are known to have been settled by mediation. This saves both parties the expense involved in going to trial, so it is a step that two opposing parties would like to take.

Benefits Of Mediation

Mediation is certainly a less expensive way of resolving a lawsuit than going to trial. A mediated settlement usually results in the complainant getting a higher net settlement, even if a trial would give him a higher gross recovery. Take a look at the following examples:

Settlement At Mediation

  • Gross Amount: $30,000
  • Attorney’s Fees: $10,000
  • Costs: $ 2,000
  • Subrogated Party: $ 5,000
  • Net to Plaintiff: $13,000

Verdict At Trial

  • Gross Amount: $50,000
  • Attorney’s Fees: $16,666
  • Costs: $10,000
  • Subrogated Party (Insurers): $15,000
  • Net to Plaintiff: $ 8,334

Average Mediation Costs In America

Mediation costs in America aren’t standard but generally fluctuate. They are usually divided into:

  • Mediation organization’s fees
  • Fees and expenses of the mediator
  • The party in question’s direct costs

Look at these figures:

  • Mediation In New York Tri-State Area

A mediated divorce can range between $5,000 and $8,000 but one through litigation can cost a whopping $50,000.

  • Mediation In California

Usually, mediation costs per hour range between $300 and $800 per hour depending on the parties involved, the difficulty level of the dispute and how many people are a party to it.

  • Mediation In Washington, DC

In Washington, DC, mediation costs hover between $6,000 and $7,000 while litigation can cost about $20,000-$25,000.

  • Mediation In Miami, Florida

Parties whose combined income is $100,000 need to pay a mediation fee of $120 per party for every session. Those whose income is lesser than $50,000 are obliged to pay $60 per party and per session.

  • Mediation In Dallas, Texas

Here, mediation costs are $250 per hour but can increase depending on the mediator and if the matter is ordered by the court.

Clients considering mediation should bear these figures in mind so that they are better prepared for the costs of mediation. The time taken to reach a settlement through mediation is much less than regular litigation, so it should be the preferred route. By choosing the right mediator, one can save money and time for both parties.

Post Author: bengrammerlaw

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