Advantages and Difference between Litigation and Mediation

When a breach of contract vs breach of warranty occurs, both companies, individuals, and breach of contract dispute lawyers Perth end up with their hands full, trying to come up with a solution. Though it is understandable to feel weighed down by the conflict, knowledge of how to work around the problem is key to avoiding economic as well as emotional losses.

One of the most important choices is to settle the conflict via mediation or litigation. Keep reading as we share everything you need to know about the difference between litigation and mediation.

Mediation – A Collaborative Approach

Mediation is generally the cheapest and least confrontational method of resolving a dispute. A mediator is a neutral person who assists the parties involved in a dispute in finding ways to arrive at a mutually acceptable decision. The mediator has no power or authority to make a decision, but aids in the negotiations between the parties so that each can present their version of events.

In Australia, it is becoming more prevalent for contract disputes to be resolved through mediation since the process is usually cheaper and often faster than through the courts. The Civil Dispute Resolution Act 2011 imposes a duty on the parties to try out a resolution through the use of ADR techniques (e.g. mediation) prior to reaching a court of justice.

Advantages of Mediation –

1. Cost-effective – Mediation is typically much less expensive than going to court. The lawyer’s fees can quickly get out of hand when employing the court system, and even if you win, those costs are typically not recoverable.
2. Time-saving – A mediation hearing would take only a day or two, based on the complexity level of the dispute, while litigation may take years or months.
3. Confidentiality – Mediation is confidential. In contrast to open court hearings, the contents of a mediation resolution are kept confidential. This can be particularly valuable to companies that wish to safeguard their reputation.
4. Control Over the Outcome – In mediation, the parties have greater control over the result. Since the resolution is reached in agreement, it is more likely to be acceptable to both than a verdict imposed by a judge.

Litigation – A Formal Legal Approach

Litigation refers to the process of bringing the conflict to the court, where a judge decides after hearing the legal arguments and evidence submitted. Litigation in Australia can either be initiated in the state courts or the federal courts, depending on the nature of the contract and the parties.

While litigation is binding and formal in its legal outcome, it can be long, expensive, and adversarial. Australian courts hear a range of contract disputes, and the best Civil Lawyers Perth can assist clients with this.

Advantages of Litigation –

1. Enforceable Decisions – A court’s decision is enforceable in law. If either party is in default in accordance with it, the other can seek further legal action to enforce compliance.
2. Public Record – Occasionally, having a case tried in court may be in the public’s interest, for instance, promoting openness or warning the rest of the sector.
3. In-Depth Presentation of Evidence – Litigation permits the presentation of the evidence and legal positions in their entirety. This may be required when the case involves intricate facts or laws which must be addressed in detail.
4. Right of Appeal – If you are not content with a court decision, you have the right to appeal in higher courts, providing you with another assurance.

Litigation versus Mediation – What Are You Supposed to Do?

By opting for mediation instead of litigation, the resolution is dependent on some factors, amongst which are the complexity and size of the case, the parties’ relationship, and the ultimate objective.

Mediation is the ideal choice for swift, low-budget, and confidential resolutions. It is particularly useful when both parties are willing to use the process and when the relationship needs to be maintained.

Thus, if the violation is economically high-stakes, fraudulently misrepresented, or conducted by an argumentative individual who will refuse to settle, litigation could be the only feasible option. Courts offer a formal process to prove breach of contract, whereby disagreements are resolved and facilitate the enforceability of the judge’s decision.

Conclusion

There is no one-size-fits-all formula in the mediation vs litigation war. The best for you will be based on the nature of your case, your relationship with the other party, and the urgency with which you must settle it.

If you have a breach of contract case in Australia, take the essential elements of contract of breach of contract seriously and hire the services of a good breach of contract lawyer to walk you through it.

Whether you opt for mediation’s relaxed process or litigation’s formal process, resolving your dispute successfully and at a low cost should be your priority.