Annual U.S. litigation cost estimates vary wildly. Some say $250 billion, others say $430 billion. When considering indirect costs, such as lost productivity or economic damages, some estimate the costs as high as $1.5 trillion.
According to Statista, more than $5 billion is spent on employment litigation alone, and another $4.5 billion on commercial litigation. Litigation surrounding intellectual property, product liability, and real estate disputes costs more than $3 billion each year.
Time is also a factor. As any litigator knows, the resolution of a lawsuit can take three to five years on average. Some cases drag on for more than a decade.
Alternative Dispute Resolution (ADR) is increasingly attractive. Its benefits were on full display during the COVID-19 lockdowns. It’s more convenient for almost everyone involved, especially in cross-country or cross-border disputes.
An important and dangerous side effect of litigation expense is access to justice. Everyone will have disputes and conflicts in their lives, but not everyone can afford to go to court.
More ADR is moving from mediation to arbitration, partly because of the perceived finality of going to a panel. The American Arbitration Association says there were 25,000 ADR cases filed in 2020. Meanwhile, there are more than 400,000 federal suits and as many as 60 million state suits filed each year.
Listen to my interview with Rich Lee, CEO and Co-Founder, New Era/ADR, as we discuss hot topics and issues involving what is referred to here as “Advanced Dispute Resolution.”
Thanks for listening!
If you like what you hear, please give us a rating. You’d be amazed at how much that helps.
If you have questions for Tom or would like to participate, you can reach him at Editor@LitigationConferences.com.
Ask him about creating this kind of content for your firm — podcasts, webinars, blogs, articles, papers, and more.
Tom Hagy
Litigation Enthusiast and
Host of the Emerging Litigation Podcast
LinkedIn
Watch This Podcast Now
FILED UNDER: Complex Litigation | Regulations + Compliance
TAGS: Alternative Dispute Resolution (ADR) | Arbitration | Emerging Litigation & Risk | Mediation
Our Guest
Your Host
