Mediation vs. Litigation: Cost and Time Efficiency in Nigeria

In Nigeria, like numerous other nations, pursuing effective dispute-resolution mechanisms is essential for individuals and enterprises.

The conventional approach of litigation is well-known but frequently faces criticism due to its high costs and prolonged duration. Conversely, mediation serves as an alternative that, although not universally embraced, provides significant benefits.

This blog explores the distinctions between mediation and litigation in Nigeria, emphasizing their respective cost and time efficiencies.

Mediation

Mediation is a method of alternative dispute resolution (ADR) in which a neutral third party, called a mediator, helps facilitate communication and negotiation between the conflicting parties. Unlike traditional litigation, mediation promotes cooperation and collaboration rather than confrontation.

It is centered around the parties’ needs, rights, and interests, providing a confidential space for them to express their concerns and work towards mutually acceptable resolutions.

One key aspect of mediation is that it is typically driven by the parties involved. It offers a secure and confidential setting for the parties to voice their concerns and interests and strive to reach mutually agreeable solutions while also maintaining their relationships.

In Nigeria, Mediation was once considered a less appealing and distant option for resolving disputes in the past. However, in recent years, there has been a significant shift in perception as mediation has become more popular, thanks to its accessibility and straightforward process.

The introduction of the Lagos MultiDoor Court (LMDC) House System has further boosted the popularity of mediation and paved the way for other states in the country to establish similar institutions.

Additionally, the Arbitration and Mediation Act has opened up new opportunities for the advancement of mediation practice in Nigeria.

Litigation

For many years, litigation has been the primary approach to resolving disputes within a country’s legal system. In basic terms, litigation involves the process of initiating a lawsuit or prosecuting an individual for a criminal act.

This process usually encompasses the preparation of legal documents, the exchange of same documents, the gathering of evidence, the establishment of claims, and the articulation of arguments, all intended to persuade the judge to either accept or reject the claims presented.

It functions as a judicial contest aimed at determining and enforcing legal rights. This method of dispute resolution has historically been characterized by its strict procedural nature, designed to ensure that all claims are adequately supported.

Consequently, the outcomes of such proceedings typically result in a definitive winner and loser.

Cost Comparison; Mediation.Vs.Litigation

The Litigation Process is known for being costly and lengthy. Expenses can accumulate rapidly due to court fees and legal fees. Conversely, mediation is generally a more economical option. Let’s briefly examine the cost breakdown for both concepts

Mediation Costs

1. Initial Cost: The initial costs of mediation are usually minimal. Typically, the mediator’s fees are divided between the parties, and they are often less than the combined expenses of litigation. In Nigeria, mediator fees are commonly determined by the mediator’s experience, the complexity of the case, and the duration of the mediation process.
2. Legal Fees: Although parties may still need legal counsel to advise them during mediation, the need for extensive legal representation is often reduced. This can significantly lower overall legal expenses. Lawyers involved in mediation generally charge lower fees compared to those engaged in protracted litigation.
3. Supplementary Costs: Mediation generally involves reduced procedural and administrative expenses. For instance, it eliminates the need for comprehensive documentation, court fees, and various costs linked to litigation.

Litigation Costs

1. Court Fees: Litigation incurs significant court fees, including filing fees, costs for serving legal documents, and potential expenses for court appearances. In Nigeria, these fees vary based on the court and the nature of the case but can be substantial.
2. Legal Fees: The expenses associated with securing legal counsel for litigation can be substantial. Legal fees in Nigeria typically depend on the intricacy of the case and the experience of the attorney, and they have the potential to rise rapidly as the case moves forward in the judicial process.
3. Supplementary Costs: Litigation involves various additional expenses, including fees for expert witnesses, travel costs, and other administrative expenditures. Prolonged litigation can also result in higher costs due to the extended time frame and the need for multiple court appearances.

Time Efficiency Comparison; Mediation V Litigation

Mediation generally offers a quicker resolution compared to litigation emphasizing a cooperative process where both sides cooperate to settle the conflict. Unless the matter is highly intricate involving numerous parties and issues, mediation sessions usually range from a few hours to a few days, with many disputes being resolved in just one session.

Mediation Timeline

1. Speed of the Resolution Process: Mediation offers a more expedient resolution process compared to litigation. Many cases can be concluded in just a few weeks or months, depending on their complexity and the parties’ willingness to negotiate effectively.
2. Flexibility: The mediation process is generally more flexible and less formal than litigation. Mediation sessions can be scheduled at the parties’ convenience, which can significantly speed up the resolution process.
3. Control Over Process: The parties have greater control over the pace of the mediation process. They can agree on a schedule that suits them, leading to potentially quicker resolutions compared to the rigid schedules of the court system.

Litigation Timeline

1.  Court Delays: Delays are a common issue within the Nigerian court system, as cases can linger for years due to a backlog, scheduling conflicts, and procedural requirements. This can create prolonged periods of uncertainty for the parties involved.
2.  Complex Procedures: Litigation involves a series of complex procedures and steps, including pleadings, discovery, trials, and appeals. Each stage can take a significant amount of time further extending the duration of the case.
3.  Formalities: The formalities associated with litigation, characterized by a rigorous adherence to rules and regulations may also lead to delays. The necessity for thorough documentation, court proceedings, and the crafting of legal arguments can prolong the duration needed to achieve a resolution.

Case Studies and Examples in Nigeria

To better understand the practical implications of mediation versus litigation, it is useful to look at specific cases and examples from Nigeria.

Business Disputes

In Nigeria’s business environment, where commercial disputes are common, companies are increasingly turning to mediation to resolve conflicts. For instance, a business partnership dispute that might have taken years to resolve through litigation would be settled within months through mediation. The cost savings will be significant, and the resolution will allow the business to continue its operations without the prolonged uncertainty and expenses associated with court proceedings.

Family Disputes

In family law cases, such as divorce or child custody disputes, mediation has demonstrated itself to be a more effective option than litigation. Families dealing with such delicate issues have found mediation to be helpful in reaching amicable agreements, frequently avoiding the substantial expenses and emotional strain of prolonged court proceedings.

Employment Disputes

Mediation has proven effective in resolving employment disputes, including issues related to wrongful termination and labor rights. In Nigeria, this method has expedited the resolution process and reduced costs, allowing employees and employers to resolve disputes without engaging in expensive and lengthy legal proceedings.

Legal Framework and Institutional Support

In Nigeria, mediation is supported by various legal frameworks and institutions. The National Industrial Court (NIC) and various state courts have increasingly incorporated mediation into their dispute resolution processes. Additionally, the Nigerian Institute of Chartered Arbitrators (NICArb) and other ADR bodies promote mediation as a viable alternative to litigation.

The legal system in Nigeria acknowledges mediation through various statutes and regulations, such as the Nigerian Arbitration and Conciliation Act. Recent reforms and initiatives have strengthened the legal foundation that upholds mediation.

Various institutions, such as the Nigerian Bar Association (NBA) and the Nigerian Institute of Advanced Legal Studies (NIALS), actively promote ADR practices. Training programs and workshops are frequently conducted to enhance the skills of mediators and raise awareness about the benefits of mediation.

Challenges facing mediation In Nigeria

Despite the positive impact mediation has made in the Nigerian Legal system over the last decade it still faces a number of challenges;

1. Lack of Awareness: Many Nigerians are still unfamiliar with mediation and its benefits. This lack of awareness can result in a preference for litigation, which is more widely understood.
   2. Inadequate Infrastructure: Although institutional support is growing, there is still a need for more robust infrastructure and resources dedicated to mediation. This includes more training programs and facilities equipped for ADR processes.
   3. Cultural and Perceptual Barriers: In some cultures, there may be a perception that mediation is less formal or less authoritative than litigation. Overcoming these cultural and perceptual barriers is essential for wider acceptance of mediation.

Conclusion

Within the Nigerian context, mediation provides a cost-effective and efficient substitute for conventional litigation. Although litigation is essential within the legal framework, it is frequently associated with exorbitant expenses and prolonged processes. Mediation, on the other hand, emphasizes negotiation facilitation and the achievement of amicable resolutions, making it a beneficial option for various dispute scenarios.

At eLegal Consultants, our team of experienced professionals excels in guiding clients through the intricacies of mediation.

With a deep understanding of both legal frameworks and conflict resolution techniques, we offer expert support for those seeking to pursue mediation as a pathway to resolution.

Contact us today, let us help you out.