Save on Civil Litigation Costs With Alternative Dispute Resolution

Civil Litigation Can Be Expensive

The most common way to resolve a legal dispute is through Civil Litigation. Civil litigation involves a defendant, a plaintiff, a judge, and sometimes a jury. The defendant and plaintiff – or more often, their attorneys – present information about the dispute through hearings and trials. The judge or jury listens to the evidence presented and makes a ruling.

Civil litigation can be a long, expensive, and often unsatisfying experience. In addition to attorney’s fees, you are also looking at other costs, such as filing, copying, expert witness, and court reporter fees, etc., along with your time. Plus, you may not get what you want out of it and end up owing the other side money if the judge or jury side with the other party.

According to a Duke Law School study, between 2000 and 2008, the average cost of litigation for corporations increased from $66 million to $115 million. That number does not include judgments or settlements.

Often, indirect costs, such as keeping key personnel from productive activities, tarnishing reputations, and destroying profitable relationships with former business allies, push that cost even higher, according to Harvard Business Review.

While you may not be able to avoid a lawsuit, you can often control those costs by working with an experienced attorney, like the team at Bingaman Hess. Our goal is to resolve your legal disputes as efficiently as possible, which is why we are often able to resolve your legal disputes outside of court, saving you both time and money.

How do we do this? We use something called Alternative Dispute Resolution whenever possible. Alternative Dispute Resolution (ADR) uses alternative methods – outside the court system – to resolve legal disputes. Some of those methods include settlement negotiation, mediation, and arbitration.

Settlement Negotiation

In a settlement negotiation, the two parties work together to resolve the legal dispute outside of court. That could mean a discussion or a letter explaining the problem and what you want or feel you are entitled to. It may include notifying the other business or individual that you are considering a lawsuit if you cannot resolve the dispute through negotiation.

If the two parties can negotiate a settlement, they should both sign a detailed settlement agreement that outlines all of the terms. If one party does not do as promised, the other party can sue them. It is even possible to structure the agreement so that it becomes a court judgment if the party does not do what was promised in the signed agreement.

Mediation

With mediation, a neutral third party (mediator) facilitates a discussion between the parties and tries to help them negotiate a resolution. The mediator – often a trained professional who understands different mediation techniques - does not make decisions regarding the dispute but encourages both parties to reach an agreement that is acceptable for both parties.

If the two parties can’t come to an agreement, the dispute can move on to arbitration or court.

The significant advantage of mediation is that if successful, both parties receive a satisfactory resolution to their legal dispute. Often, mediation is the least expensive ADR method and can often preserve the relationship between the two parties. The disadvantage of mediation is that it is nonbinding.

Arbitration

With arbitration, a third party (the arbitrator) listens to each side’s argument, reviews relevant evidence, and makes a decision about the dispute – similar to a judge. It is typically less formal than litigation and is based more on facts than on legal issues.

Arbitration can be simpler, faster, and less expensive than taking a dispute to court. In lower-dollar-value cases (typically under $50,000), your case may be placed in the court’s mandatory arbitration program.

The decision made by an arbitrator is binding and can’t typically be appealed to a higher court. Again, it is a less expensive alternative to civil litigation.

An expensive and time-consuming trial in court can often be avoided with one of these alternative dispute resolution methods, saving you both time and money and often frustration or disappointment.

What if Alternative Dispute Resolution Doesn’t Work?

If a legal dispute cannot be resolved using an alternative dispute resolution method, you will want an experienced lawyer to represent you in court. Bingaman Hess’s team of litigation lawyers know how to build a strong case on your behalf and will aggressively represent you in court to produce the best possible result for you.

If you have a legal dispute that needs to be resolved, give Bingaman Hess a call at 610.374.8377 or find us online. One of our experienced litigation attorneys can help.

< Older Post

Newer Post >

Mail

News & Information

Business Succession Planning

By Mahlon Boyer • May 30, 2026

Business succession planning is an important process that helps business owners prepare for the upcoming transfer of ownership and leadership. Whether the transition involves passing the company to family members, selling to business partners or transferring ownership to outside buyers, having a clear succession plan helps reduce uncertainty and protect the long-term security of the business. A careful plan can also minimize disputes, preserve business value and ensure continuity in periods of change. Planning for Business Transfer The first step in business succession planning is identifying how the business will be transferred and who will assume control. Business owners should evaluate their long-term goals, retirement plans, and the financial needs of both the company and their family members. Some owners choose to pass the business on to children or relatives who are already involved in operations. Others may transfer ownership to key employees, business partners or third party buyers. Each option has different legal, operational and financial consequences. A successful transition often takes years of preparation. Potential successors may need leadership training, operational experience and gradual increases in responsibility to ensure they are ready to effectively manage the business. Good communication with family members, partners and stakeholders is also important to avoid misinterpretations and conflict. Business owners should work with legal and financial professionals to create formal succession documents, update corporate records, and establish a realistic timeline for the transfer process. Use of Buy-Sell Agreements Buy-sell agreements are an essential part of many succession plans. These legally binding agreements specify what happens to the interest of a business owner if certain events occur, such as retirement, disability, death or voluntary departure from the company. A buy-sell agreement typically defines who may buy the shares of the departing owner, how the business interest will be valued and the terms of payment. This structure helps maintain stability and prevents ownership disputes that could disrupt operations. For businesses with multiple owners, buy-sell agreements provide understanding and protections for all parties involved. They can prevent unwanted external ownership and ensure that remaining owners retain control of the company. Funding mechanisms are also important. Many businesses use life insurance policies to fund buyouts in the event of an owner's death. This allows surviving owners or family members to complete the transfer without putting financial hardship on the business. Tax Considerations Tax planning is an important part of business succession planning. If the transfer of ownership is not well planned, the business owner and successor will face a substantial tax liability. Depending on how the transfer takes place, the owners may face capital gains, estate, or gift taxes. With good planning, these tax burdens can be reduced with trusts, step-by-step ownership transfers, family partnerships, or changing the type of business entity. Another important factor is valuation. A proper valuation of a business is important for determining tax liability and ensuring that everyone involved in the transfer is treated fairly. Business owners should regularly review their succession plans with accountants, tax advisors, and attorneys, as tax laws are often changing. Regular updates keep the plan in line with changing legislation and the business’s needs. Let Us Help You Navigate the Essentials of Business Succession Planning Don’t wait! Talk to one of the experienced estate planning attorneys at Bingaman Hess today at 610.374.8377 or contact us online. This article is for informational purposes only and does not constitute legal advice. No one may rely on this information without consulting an attorney. Anyone who attempts to use this information without attorney consultation does so at their own risk. Bingaman Hess is not and shall never be responsible for anyone who uses this information. It is not legal advice.