Creators Syndicate

FIGHT BACK!  BY DAVID HOROWITZ 

Settling Out of Court 
         
        Ninety-five percent of lawsuits filed in this country  never go
to trial, which is not surprising when you consider  the costs of a
civil trial that may drag through the courts  for years. This is
especially true when an individual  consumer sues a major corporation.
The company has much  deeper pockets and can afford such delays more
easily than  the individual. 
        Even so, corporations have their own reasons for not  wanting
to go to court. Those high-powered attorneys don't  work cheap, and the
adverse publicity from a high-profile  lawsuit can do tremendous damage
to a company's reputation. 
        This urge to avoid prolonged litigation has boosted the 
fortunes of private arbitration and mediation services. They  hire
retired judges to hear disputes in private, without the  formalities
and restrictions of a courtroom. It's no longer a  win-all/lose-all
confrontation. The lawyers are there to ne- gotiate, ready to give and
take in an effort to put the case  to rest. Everyone involved is part
of the process -- there  are no mere bystanders. 
        But what makes arbitration and mediation work is that is  cost
efficient. Hearings are scheduled at the convenience of  the litigants,
not when they can be fitted into an  overcrowded court calendar. Both
sides share the cost of the  mediation service, which is only a
fraction of what they  would spend on court costs and attorneys' fees
over the  course of a trial. Hearings may last only a day, and 
decisions are rendered in less than a month -- often sooner. 
        You might think that trial lawyers would oppose  arbitration
and mediation. But in fact, such services  actually work to their
advantage. Contingency fees are based  on a percentage of the
plaintiff's award. Since awards in  mediated cases are usually
comparable to an out-of-court  settlement, the attorney's fees are also
comparable -- with  much less time wasted going through the motions of 
litigation. 
        Still, the path of alternative dispute resolution has  not
always been smooth. The American Automobile Association  announced late
last year that it was getting out of the  business of arbitrating
claims between car owners and  manufacturers over warranty repairs. The
stated reason was  that AAA arbitration benefited only a small
percentage of  auto-club members. Only 1 percent of the cases heard by
AAA  panels each year involved club members. 
        But the AAA was also stung by charges that its  arbitration
procedures tended to favor the car companies.  Cases were decided
solely on the basis of written arguments  and evidence. A car owner was
not allowed to tell his or her  side of the story in person. 
        In fact, the auto club was in a no-win situation because  of
the cases it received. Most legitimate complaints were  handled by the
car companies through their own in-house  consumer satisfaction
programs. The cases that went to  arbitration were often frivolous or
unfounded. When those car  owners failed to get their demands in
arbitration, they  blamed the system. 
        But the fact is, arbitration and mediation do work to 
consumers' benefit. Such programs are usually fast, fair and  far less
costly than a court trial. And when lawyers get used  to that idea, I
believe everyone will benefit. 
        If you have questions or comments, please write to David 
Horowitz at 72662,1775. COPYRIGHT 1994 CREATORS SYNDICATE, INC.