How much does mediation cost?
The cost of the mediation is usually shared by the parties (with the exception of
employment disputes where the costs are usually covered by the employer). The required length of a mediation depends on the nature of the dispute and the co-operation and determination of the parties seeking
resolution. Anecdotal evidence indicates that most resolvable disputes are completed within one day.
The mediation fee and costs involved in the mediation are negotiable and
depend on the complexity of the dispute and the area of law involved (for example family, commercial, employment). In certain circumstances there may be travelling and accommodation expenses and other miscellaneous expenses such as meeting room
hire.
However, when compared to the
price of litigation, the question is can you afford not to mediate?
Average cost of a two day
hearing:
-
Civil litigation
(contractual/commercial disputes) $20,000 plus (per party) plus filing fees;
-
Relationship Property Disputes
$15,000 plus (per party);
-
Employment dispute $7,000 plus (per party) to the
first level of the Employment Relations Authority.
Although costs are often awarded
to the 'winning' party, they are usually capped and are a fraction of the actual cost of the
litigation.
Average cost of a two day hearing:
-
Civil litigation (contractual/commercial disputes) $20,000 plus (per party) plus filing fees;
-
Relationship Property Disputes $15,000 plus (per party);
-
Employment dispute $7,000 plus (per party) to the first level of the Employment Relations Authority.
Although costs are often awarded to the 'winning' party, they are usually
capped and are a fraction of the actual cost of the litigation.
When is mediation appropriate?
Mediation is appropriate for virtually all commercial and domestic disputes provided that:
-
Both parties recognise that there is a problem that requires resolution
-
Both parties are willing to mediate
-
Both parties see the potential value, both financial and emotional, of settling the dispute out of court.
When is mediation inappropriate?
Mediation is inadvisable where a domestic relationship has had ongoing domestic violence or physical and/or verbal intimidation.
Who attends the mediation?
Each party should bring one support person. This can be a friend, a family member or a professional advocate such as a lawyer. Both parties should seek agreement prior to the mediation regarding
the choice of support person and whether support people will have speaking rights during the mediation.
It is not appropriate for children to be brought to a mediation and reliable child care arrangements should be set in place prior to the mediation.
Is mediation legally binding?
Although the mediation process is voluntary, the agreement that results is signed before the parties leave the mediation. Once signed, the Agreement is a legally binding document.
