Petranovich Explains Benefits of Mediation
Milo Petranovich was quoted in an August 24, 2007, Portland Business Journal article titled “Expensive arbitration climate paves way for mediation.” The article explained that mediation, not arbitration, is becoming the preferred method for keeping legal disputes out of court, in part because mediation can be less expensive. In mediation, the parties make a good-faith effort to compromise within a limited timeframe, with litigation following if no resolution is reached; in arbitration, a panel makes a binding and final ruling. Petranovich said it can cost each party many thousands of dollars in fees up front to pay the arbitration agency, and then you have a cost of $3,000 to $4,000 per day if there are three arbitration judges. “It can get very expensive,” he said. “You go to court, you don’t pay the [court] judge.” He said arbitration is generally better suited to smaller cases that are not complex.