Alternative Dispute Resolution in Michigan: What You Need to Know
“I don’t want a mediator deciding my case. I want a judge or a jury! I want my day in court!” As both an attorney and a certified mediator, I hear this concern frequently. But here’s the reality: your case is probably not going to trial. According to the State of Michigan’s 2023 Court Caseload Report, [1] of the 42,348 civil cases resolved in Michigan Circuit Courts[2] that year, only 364 (less than 1%) went to trial. The vast majority of civil disputes are resolved through settlement or alternative dispute resolution (ADR) processes.
Why are people still skeptical of ADR? Often, it comes down to misunderstanding. Many people confuse mediation and facilitation with arbitration, and few have even heard of case evaluation, a unique Michigan-based procedure. These three forms of ADR differ significantly in cost, control, and process. Let’s break each one down.
Arbitration: A Private Trial Without an Appeal
Arbitration is a more formal ADR method where both parties agree to let a third party, called an arbitrator, decide the outcome of the dispute. In this sense, arbitration functions like a private judge and jury.
- How it works: Each party presents their case to the arbitrator, either in a hearing or through written submissions.
- Rules: Arbitration tends to be faster than court litigation and follows looser rules, e.g., the rules of evidence often don’t apply.
- Costs: Parties must pay the arbitrator, and fees can quickly add up.
- Finality: Arbitration decisions are binding. Courts almost never overturn arbitration awards unless there’s proof of fraud, corruption, or serious misconduct.
While arbitration can be efficient, it’s also rigid. You give up the right to a trial and, in most cases, the right to appeal.
Case Evaluation: Michigan’s Unique ADR Option
Case evaluation is a Michigan-specific process that was once mandatory in many civil lawsuits but is now voluntary as of 2022.
- The Process: Both parties submit written briefs to a panel of three neutral attorneys or retired judges. They then make oral arguments before the panel, which assigns a dollar value to the case.
- Acceptance or Rejection: If both sides accept the evaluation, the case settles. If both reject it, the case proceeds. Previously, if only one party rejected a unanimous award, they could face sanctions, but those penalties have since been eliminated, removing much of the pressure to settle.
- Impact: With its now-voluntary nature and lack of enforceable penalties, case evaluation is often used strategically but lacks the binding power it once had.
Mediation: Control, Cost Savings, and Collaboration
Mediation is a flexible, cooperative process. Unlike arbitration, the mediator doesn’t decide the case. Instead, they help both parties communicate effectively and work toward a mutually agreeable resolution.
- When it happens: Mediation can occur before, during, or even after litigation. Some cases go to mediation while on appeal.
- Control: The parties, not a judge or jury, decide the outcome. The mediator simply guides the discussion.
- Voluntary: There’s no obligation to settle. If mediation fails, you can move forward with a lawsuit.
- Cost-effective: Resolving a dispute through mediation—especially before filing a lawsuit, can save thousands of dollars in legal fees.
- Preserves Relationships: Mediation encourages respectful dialogue. This is especially valuable when the parties have ongoing relationships, such as family members, neighbors, or business partners.
- Confidentiality: Mediation is private. Unlike court filings, nothing said in mediation becomes part of the public record unless both parties agree otherwise.
Why I Believe in Mediation
There are many reasons I advocate for mediation, but here are my top five:
- It’s Voluntary
No one is forced to settle. If an agreement can’t be reached, the case can proceed in court. - Parties Stay in Control
Mediated agreements often leave both sides “a little unhappy,” but satisfied. In contrast, a court or arbitrator may leave one or both parties feeling blindsided. - It’s Cheaper
Trials are expensive. Mediation, particularly early on, can save tens of thousands of dollars in legal and expert fees. - Relationships Can Be Preserved
Mediation focuses on solutions rather than blame. That can help maintain important personal or professional relationships after the dispute is resolved. - It’s Private
Mediation keeps sensitive issues out of the public eye. In contrast, court records are usually public and searchable online.
Conclusion
Alternative dispute resolution isn’t about taking your rights away, it’s about empowering you with more tools to resolve your dispute. While arbitration, case evaluation, and mediation each serve different purposes, understanding these options can help you make more informed decisions and avoid the emotional and financial toll of trial.
If you’re facing a dispute, don’t automatically dismiss ADR. With the right process and the right mindset, it might just be your best path forward. Please give me a call at (248) 349-6203 or fill out the form below to see if mediation is right for you.
Disclaimer: This Blog/Web Site is made available by the lawyer or law firm publisher for educational purposes only as well as to give you general information and a general understanding of the law, not to provide specific legal advice. By using this Blog, you understand that there is no attorney client relationship between you and lawyer, law firm, and the Blog/Web Site publisher. The Blog/Web Site should not be used as a substitute for competent legal advice from a licensed professional attorney in your state.
[1] https://www.courts.michigan.gov/4950ba/siteassets/reports/statistics/caseload/2023/statewide.pdf
[2] “The circuit court is the trial court with the broadest powers in Michigan. In general, the circuit court handles all civil cases with claims of more than $25,000 and all felony criminal cases (cases where the accused, if found guilty, could be sent to prison). The family division of circuit court handles all cases regarding divorce, paternity, adoptions, personal protection actions, emancipation of minors, treatment and testing of infectious disease, safe delivery of newborns, name changes, juvenile offenses and delinquency, juvenile guardianship, and child abuse and neglect. In addition, the circuit court hears cases appealed from the other trial courts or from administrative agencies. The friend of the court office is part of the family division of the circuit court and handles domestic relations cases where minor children are involved.” https://www.courts.michigan.gov/courts/trial-courts/
