The Odds of Reaching a Settlement After Unsuccessful Mediation

Introduction

Unsuccessful mediations often raise concerns about the likelihood of reaching a settlement. This article explores the statistics, reasons, and factors that influence whether cases tend to result in trials or are settled later. The key points discussed include the benefits of continued negotiations, post-mediation settlement rates, and the judicial encouragement to avoid trials.

Continued Negotiations After Unsuccessful Mediation

While mediation may not result in an immediate settlement, the process can significantly aid in resolving disputes. Even when mediation fails, the parties often continue negotiations, leveraging insights gained during the mediation. This ongoing dialogue often strengthens their bargaining position, facilitating a later agreement.

Post-Mediation Settlement Rates

Statistics reveal that a considerable number of cases settle shortly after an initial unsuccessful mediation. These settlements typically occur within weeks or months following the mediation session. Parties may require time to fully absorb the mediation findings, gather more information, or seek further legal advice before reaching a compromise.

Trial as a Last Resort

Trials are generally viewed as a last resort due to their high costs, lengthy duration, and uncertain outcomes. As a result, parties often prioritize settlement over litigation. Even after unsuccessful mediation, the desire to avoid the risks and expenses of a trial often drives continued negotiations towards a resolution.

Judicial Encouragement for Settlement

Courts commonly encourage or require further attempts at settlement, such as additional mediation sessions or settlement conferences. This is especially true if the case shows potential for resolution. Judges may view these efforts as a means to reduce the overall case load and expedite resolution.

Empirical Data on Settlement Rates

Various studies and reports support the trend towards settlement. In civil cases, for example, data indicates that upwards of 80-90% of cases are settled before reaching trial. This high settlement rate suggests that while initial mediation may fail, the underlying desire for resolution typically prevails. Courts and legal professionals often cite this data when advising parties to explore further settlement options.

Conclusion

While an unsuccessful mediation may initially seem like a setback, it often serves as a stepping stone toward a later settlement. The parties' reluctance to incur the costs and risks of trial, combined with continued negotiation efforts, typically results in a successful resolution before the case reaches the courtroom.