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Mediation is Cost Effective
Mediation is Cost Effective
In 2In standard mediation conferences the hourly rate is divided equally between the plaintiff and defense. The standard hourly rate for mediations beginning January 1, 2023 will be $300 (i.e., $150 per side). Until then the rate is $280 per hour.
In local 2-party cases where flat fees are chosen, the cost per party for a full day mediation is $1,225. A half-day mediation is $700 per party. Mediation is a predictable and cost-effective alternative to litigation. Flat rate mediations are invoiced in advance. See below for more details.
The Cost of Going to Trial
The Cost of Going to Trial
Parties--even sophisticated parties who are litigation savvy--tend to underestimate the cost of taking a case from filing through trial. Its not just the checks that someone has to write to lawyers, testifying experts, court reporters, consulting experts, litigation companies for IT services at trial, and filing fees. For companies, its the key personnel who are taken away from doing their work so they can answer questions and help with the litigation. Its the unseen cost to their business. For individuals, especially those who have suffered serious injuries, its the psychological cost of having to relive trauma. The longer the case takes to get to trial, the more those costs add up. Its difficult to get a civil case to a jury trial in less than two years, and its often three years or more.
Mediation can save the parties the parties time, money, and those hidden costs of litigation. When parties mediate early in cases, which is required in most cases filed in the U.S. District Court for the Western District of Pennsylvania, the savings of time and money can be tremendous. But even when the parties wait to mediate until shortly before trial, the cost savings can be significant. Trials are becoming more expensive, as juries have come to expect high-tech presentations and to hear from leading experts, who are often from out of town. Of course, all of those are just transaction costs. The biggest value of mediation is the value of managing the risk of losing. That's one thing that parties can do in mediation that no one can do in a jury trial.
Hourly Rates
Hourly Rates
$300 per hour, divided equally for 2 party cases, unless agreed to otherwise. ($280 until 12/31/2022)
A two and a half hour minimum is charged for all mediations. Additional fees may be charged for cases with more than 2 parties, or where the demand exceeds the limit of primary insurance. Fees are charged for prep time, mediation time, and, for non-local cases, for travel time.
We do not charge for the first hour of travel time from our office in Indiana, Pa. So, for many mediations in Pittsburgh, Greensburg, Kittanning, Ebensburg, and Altoona little or no travel time charge is incurred. Parties that are jointly represented are considered to be a single party for fee purposes, unless agreed to otherwise. If you have any questions about our fees, please call us.
Flat Fees
Flat Fees
Flat Rates - Standard Cases
Local Half Day: $700 per party ($1,400 total) for up to 3.5 hours of mediation time for 2 party cases.
Local Full Day: $1,225 per party ($2,450 total) up to 7 hours of mediation time for 2 party cases.
A flat fee is economical and predictable. Local mediations are those that take place with less than one hour of travel time. Portions of portions of Allegheny, Westmoreland, Indiana, Jefferson, Cambria, and Blair counties will have little or no travel expense. Flat fee arrangements include 1-2 hours of study and preparation time and a short pre-mediation conference, if needed. Additional fees may be charged for non-standard cases, including with more than 2 parties, where the demand exceeds the primary insurance policy limits, cases requiring travel, or where extensive pre-mediation preparation is expected, such as where there are multiple expert reports that must be studied. Mediations that exceed the above limits are billed at standard hourly rates for the excess time. Flat fee mediations are billed in advance. If you need to cancel, please give us notice at least four days in advance. For complex cases, including professional liability cases the parties should choose a full day flat rate. If you have any questions about our fees, please call us.
Other Terms
Other Terms
Once the mediation has been confirmed, we will send a letter to counsel confirming the date and payment information. Please provide good mailing addresses and email addresses for counsel. Mediations will be invoiced by the Colkitt Law Firm, P.C. Expenses are charged to the parties at cost and are divided equally. If the parties need to cancel, please notify us as soon as possible, and at least four business days before the scheduled mediation. Parties that are jointly represented are considered to be a single party for fee purposes, unless agreed to otherwise, or as provided by local court practice. We reserve the right to require pre-payment of fees and those pre-payments are refundable if the mediation is cancelled with sufficient notice in advance. We reserve the right to charge fees for work performed before we receive notice of the cancellation. Unpaid invoices are subject to a 1.5% monthly interest fee until paid. When retained as a mediator, Andrew Kennedy acts as a neutral, and not as an attorney for any party. Parties should bring their own attorney to the mediation to act as their counsel. Where the parties are not in litigation, such as disputes involving employers and employees, we typically bill the employer only. We may modify our terms without prior notice. If you have any questions, please call us.