Who Pays for Mediation?
When parties are unwilling or unable to resolve a dispute, a viable option for resolution is mediation. Mediation is a negotiation facilitated by a neutral third party known as the mediator. A mediator helps parties reach resolution. Mediation is usually a voluntary process, although sometimes it may be required by the court. Who is responsible for paying for the mediation? Experienced mediator and litigation attorney Tom Moring explains the financial responsibilities in his latest video.
Who pays for mediation?
At mediation, you can have a mediator that’s appointed by the court, and in that case it is free of charge to all of the parties. Other times, you’ll engage a private mediator. Often these are retired judges or people with a great deal of experience in the field. The mediator may be another lawyer or sometimes it maybe a specialist such as an engineer or appraiser. Usually they charge an hourly rate. Customarily, those fees are split 50/50 between the parties. In three-way mediation, the fee is usually split three ways. However, that is not always the case. At the close of the mediation, often one of the points of compromise is asking one side to pay the entire fee. Sometimes that can help a mediation resolve and settle if one of the parties is almost where they want to be, but not quite. Asking the other side to pay the entire mediation fee may bridge that gap and get the case settled.
About the Author: Tom Moring, a partner in the Phoenix law firm of Jaburg Wilk. His practice emphasizes complex real estate and commercial disputes, creditor's rights, tort litigation and collections matters. Mr. Moring has extensive experience in managing and performing all aspects of litigation from initial investigation through discovery to trial.