200 million savings forecast using mediation

A recent study conducted by Michael Gorman concluded that up to €200 million could be saved by the use of mediation instead of litigation by State bodies, according to a study of the State’s legal spend by legal training organisation Friarylaw. The findings were presented at a recent symposium on mediation on in Trinity College.

The study undertook an audit of public body spending on litigation, based on 437 Freedom of Information requests, and examined the results against the Oregon State Model which used mediation instead of litigation in disputes involving the state. This model demonstrated savings of up to 85 per cent of litigation costs.

Mr Gorman concluded if this model were applied to the Army deafness he claimed that the legal costs of 97.9m could have been cut to 5% using mediation. He also estimated the state spend on litigation in 2008 was 300m and this could be reduced by 100m in the short to medium term and a further 100m in the longer term with the proper design and implementation of customised early dispute management and mediation services.