The financial crisis that began in 2007 resulted in unprecedented losses for American investors, which led to a backlog of securities cases in the courts. As a result, mediation has become a viable option for aggrieved investors. Not only do they save both parties time and money, but they also keep the matter out of the papers. In other words, they offer obvious benefits to the plaintiff and the defendant.
How It Works
Instead of handling things in court, securities mediation settlements are generally resolved with the help of an impartial mediator. This mediator hears from both parties and then attempts to arrive at a mutually agreeable solution or settlement. During the meetings, either party can enlist the services of attorneys to represent them, or they can go pro se (represent themselves). The mediator or mediators do not have the legal right or authority to compel either side to accept an agreement or make a binding decision, as a judge might. His or her job is to facilitate a resolution if possible.
We do not know exactly how effective these resolutions may be since the records are often sealed and rarely publicized. But we can say that it has become an increasingly popular option for wronged investors who do not want to spend years in litigation. The option is also extremely popular with attorneys because it is more expeditious and more likely to result in a settlement than a traditional civil lawsuit.
Why They Work
Mediation is a far less contentious option than a traditional court trial. Instead of standing before an all-powerful judge and jury, the process gives both sides the opportunity to talk things out in a more informal setting. They need not make emotional appeals to the judge and jury to try to win their favor, or influence their decision since mediators do not have a legal duty. They are simply there to weigh dispassionately the fact of the case and make reasonable suggestions and recommendations, not judgments.
Why They Don’t
The process isn’t for everyone, of course. In some legal cases, the two sides are too far apart or too angry to listen to reason. But when both parties are ready to come to the proverbial table, securities mediation is a viable, even preferable option. Mediation is not recommended without the assistance of experienced attorneys.
Even though the setting may be more relaxed, and the parties may act more civilly toward each other, securities cases can be quite complex. But if the defendant agrees to meet with the plaintiff, it often means that he or she acknowledges that the lawsuit has merit. The worst thing you could do in that circumstance would be to show up alone and make unreasonable demands based on emotion.
An experienced mediation attorney can act as your representative in all meetings and negotiations. He or she will help you determine your best course of action and whether or not complex commercial litigation settlements should be accepted or rejected.
When considering attorneys, Binghamton, NY residents visit Haines Local Search. Learn more at http://www.yellowone.com/Binghamton,NY/Attorneys/list.
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