Demand growing for mediation and arbitration services

While litigation is a booming business in America, less than 5% of cases actually go to trial. But even when cases settle, parties still expend enormous sums of money and time.

This reality is one factor driving demand for alternative dispute resolution services such as mediation and arbitration.

We think we've only seen the tip of the iceberg in terms of mediation, said Bob Jenks, president and director of Mediation Arbitration Professional Systems Inc. in Metairie. We see it expanding significantly. It's a way to control cost, speed up resolution and restore relationships.

Several factors are boosting demand for alternative dispute resolution. In 1990, Congress mandated that federal agencies create internal dispute resolution programs. Also, many employers now insert mediation and arbitration clauses into employment agreements. Companies often have similar clauses in contracts with vendors.

In addition, almost every consumer product, from cell phone contracts to New Orleans Saints tickets, has a provision demanding disputes be arbitrated, said Tom Foutz, president of Alternative Dispute Resolution Inc. in Metairie. This helps head off class action suits, he said, although it is highly controversial with consumer advocacy groups.