Wednesday, January 28, 2009

Is mediation killing big law firms?

Maybe.

According to this blogger, one of the reasons leading to Heller Ehrman's demise (you can view its website here, which doesn't contain fancy graphics, just the firm news about its bankruptcy filing) is that within a 45 day period in 2007, Heller lost 25% of its litigation work due to settlements.

You don't have to be a managing partner to know that's bad news for a firm's bottom line (unless you are on the plaintiff's side of things and obtain a big settlement in favor of your client).

Settlements are tricky creatures. From a firm perspective, a settlement means that there are no more billable hours. So no more firm revenue. From a client perspective, settlement means certainty as to its future budget, a conclusion to uncertain outcome in court, and creativity in how the case is resolved.

This inherent, well, conflict, between the firm's bottom-line financial pressure and the client's goals has always been something that confronts me.

With the proliferation of alternative dispute resolution, and fewer and fewer cases going to trial, will we see a demise of big firms--because too many settlements in a quarter can zap the firm's cash flow?

Mediating dog bark cases

Ever heard your neighbor's dog bark. And bark. And bark.

Or was it your dog?

Arizona is sending dog bark cases to mediation, according to this article.

Having handled a dog-barking case before, I know that these cases are ripe for mediation and resolution by sitting down with your neighbor, instead of fighting with your neighbor.

Peace.

Ohio Foreclosure Mediation

A judge comments on the benefits of mediation of foreclosure-related cases. A copy of the article can be found here. Judge Joseph Schmenk noted that both borrower and lender can come out ahead by mediating these types of cases, instead of trying them.

Foreclosure Mediation

The American Bar Association published an excellent web page devoted to mediation of residential foreclosures. You can view the site here. Currently, ten states have developed legislation relating to mediating these types of disputes.

Wednesday, December 3, 2008

Civility and Kindness

Remember all the rules that we grew up with? Well, maybe we grew up with?

Don't talk with your mouth full.
Show up on time.
No elbows on the table.
"Yes, sir" or "No, sir"

Many people would identify the lack of civility and kindness as important aspects of our lives that are missing.

The Smithsonian Magazine highlighted the work of Professor Pier M. Forni of Johns Hopkins in promoting civility. I've not read his book, but I will.

Whether we call the issue civility, kindness, working together, or conflict resolution, all of these cultural issues result in stress and lack of community. As Professor Forni points out, we are social creatures, needing to be in community, and the lack of kindness and civility that we show each other is not only troubling from an ethical, moral, and religious points of view, but also causes great havoc in quantitative measures. Stress leads to decreased productivity at work, increased health problems, and torments the relationships we have with others. The role of conflict in the workplace, and the quantifiable damages conflict causes, is well documented and has been discussed in this blog.

As we end 2008 and look forward to 2009, let's take a moment and resolve to treat each other with kindness and civility. Who knows, maybe, just maybe, we may be the recipient of someone's kindness. Wouldn't that be nice?

Monday, December 1, 2008

A court mediator?

The Advertiser-Tribune.com (out of Ohio) writes about a program involving a "court mediator", someone who appears to be working full-time for the court system (here for six judges in four Ohio counties). The mediator's fee is paid through the court's budget, which is supplemented by a mediation fee charged by the court, according to the article.

What would the process look like if courts had full-time mediators on call, paid for by the court system, to help resolve disputes? Would the number of cases that settle increase or remain the same? Would settlement rates vary, depending upon the location of the mediation? Does it matter if the mediator is already at the courthouse, as opposed to a more-traditional method of mediation at the mediator's office?

Norwegian Copyright ADR

Norway's Consumer Council is recommending that ADR be introduced in copyright litigation so that parties can meaningfully settle cases instead of "being forced into settlement arrangements simply because they could not afford to defend legal action brought by copyright holders."

What an interesting concept--that lawsuits can be so expensive that a party feels forced into settlement simply because it can't afford the fight.

Perhaps an advantage of alternative dispute resolution methods is that it helps to level the playing field, in that the parties do not have the expense of a trial?

My experience is that the most expensive portion of litigation is the pre-trial work: getting the defendant served, discovery, and dispositive motions. After that, the trial preparation is certainly expensive, but I wonder how many people would willingly sit down pre-discovery and try to negotiate a settlement?