FALSE IN ONE, FALSE IN ALL - AT TRIAL, CREDIBILITY MATTERS

Trials are often won or lost based upon credibility determinations.  More often than not, cases are replete with he said/she said situations, or real differences of opinion as to almost every issue.  In an interesting unreported Appellate Decision released on July 15, 2009, credibility was critical.  As the author of this post was the successful trial and appellate attorney in this matter, I am fully familiar with the facts. 

Aside from being important at trial, credibility determinations cannot be overturned on appeal.  On top of that, as long as the Appellate Division finds that there was sufficient credible evidence in the record, the trial court opinion will be upheld.

In this case, the issues were more than he said she said. In the six months between when the wife said that she wanted to get divorced and the filing of the divorce complaint, the husband's law practice which had been growing and flourishing each year, suddenly became less profitable, if he was to be believed.  He was not believed.  Both the wife's testimony as well as her forensic accounting expert's testimony were deemed more credible. 

It was not just the wife's word that was so compelling.  Rather, at trial we produced thousands of pages of exhibits that supported the issues we presented.  It was not surprising, on appeal, that defendant argued that there was no evidence in the record - but to do so, he had to fail to comply with the rules and submit the trial evidence.  The wife was forced to remedy this. 

On almost every issue at trial, the husband was deemed not credible. This included findings of discrepancies in his Case Information Statement, violation of Court Orders, lack of credibility regarding the marital standard of living and his income, etc.  The Appellate Division's assessment of the husband was perhaps even more severe:

Finally, in an amended notice of appeal, defendant seeks review of an order entered on September 24, 2007 denying his motion for recusal of the trial judge. Defendant claims that "the trial [judge] made several inappropriate credibility determinations about defendant and his experts to justify rejecting the testimony and objective evidence presented at trial." After reviewing the record, we find no evidence of bias
against defendant. The court made credibility determinations based upon the evidence presented and defendant's demeanor and testimony. We give great deference to the trial court's credibility findings and will not upset them unless they are patently contrary to the credible evidence in the record. State v. Locurto, 157 N.J. 463, 470-71 (1999).

Moreover, if this had been a jury trial, the court could have given the "False in One, False in All" charge, instructing the jury that if it found that defendant had testified untruthfully in one instance, it could find his entire testimony to be untruthful. Since numerous discrepancies in defendant's financial information were brought to light during trial, the "False in One, False in All" principle applies.

The ramifications of not being truthful are rarely so clear.  We are obviously proud of the result obtained for our client in this case.

READ MARK ASHTON'S EXCELLENT POST ENTITLED "SIZING UP THE LITIGATION: AN EXAMINATION OF COST VS. BENEFIT"

Mark Ashton, a partner in our Exton, Pennsylvania office, and the editor of the firm's Pennsylvania Family Law blog, wrote an excellent post on that blog entitled, "Sizing Up the Litigation:  An Examination of Cost vs. Benefit.  To read the post, click here.

The point of the post is that a litigant should choose their battles wisely, recognizing the potential costs. I often tell clients that it does not make sense to spend $2 to get $1, or for that matter, to spend $1 to get $1.  As Mark states, there are times to fight over principle.  A litigant needs to weigh when it makes sense to fight over principle, or choose to fight another day over something more important financially.

1-2-3-4 PRESSURE - THE END OF THE COURT YEAR IS COMING

The end of the Court year in  New Jersey in June 30th.  With that will come pressure, perhaps unnatural pressure, but pressure nontheless to resolve cases. 

While the fact that there are judicial shortages in many counties may provide relief, I suspect that it will do little to quell this rite of Spring.

As the legal system is very statistically driven, a court's performance is often measured in how many cases they clear, and more particularly, whether there is backlog (i.e. is the case too old for the case type that it is).  My undertanding is that a divorce case in in back log when it is over 1 year old. 

One tool that Court's use to clear more cases this time of year is to hold "blitz weeks."  During a blitz week, the oldest cases in a county are scheduled for trial and all of the family part judges clear their calendars to allegedly try cases during these weeks.  Whether or not cases actually get tried during blitz week is another story.  However, the threat of trial, along with the court's active assistance in trying to settle cases often clears many cases from the docket.

Also, in the cases that are naturally scheduled for trial during this time of year, adjournments become more difficult.  Regularly, multiple trials are scheduled for a judge for the same day.  The reason for this is that most cases settle or get adjourned so if only one case were scheduled, a judge could have open court time.  Often you will learn where you are on the list in terms of which is the oldest case and can get a sense as to whether the trial date is a real one.  In fact, usually the first and second trial date are not "real" dates, but rather dates when a court will try to get you to settle. 

That said, at this time of year, if you want to try to adjourn these dates, it becomes more difficult, with the hope that you will settle.  There is an old joke that goes, what is the easiest way to get an adjournment, tell the court you are ready for trial.  In reality, it works in the reverse.  That is, when you seek an adjourment of a trial date, courts often deny this expecting that it will help force a settlement. 

In my practice, if I appear for a trial date, I am prepared for trial.  I learned early on that the best way to be prepared to settle a case it to be prepared to try a case.  That way you are negotiating from a position of strength and very often, the other side really isn't prepared for trial  - making favorable settlement terms more likely.

In any event, if your case is getting close to a year old, expect pressure from the Court to get it done before June 30th.

READ MARK ASHTON'S INTERESTING POST ENTITLED "MEDIATE, ARBITRATE, NEGOTIATE: WHAT'S A CLIENT TO DO?"

Mark Ashton, a partner in our Exton, Pennsylvania office, and the editor of the firm's Pennsylvania Family Law blog, wrote an interesting post on that blog entitled Mediate, Arbitrate, Negotiate:  What's a Client to Do?" To read the post, click here.

Mark's blog entry goes through the options of alternate dispute resolution.  Like Pennsylvania, in New Jersey, there is very limited review of an arbitrator's decision.  However, parties can agree to an appeals type process.  However, that appeal would be to a trial court, not the Appellate Division as we recently learned in the reported case of Hoogoboom.  Moreover, in New Jersey, you can mediate, but you cannot arbitrate custody and parenting time disputes.

Also, in my experience, arbitrations are very much like trials with the arbitrator serving as the judge.  While you can agree to relax the rules of evidence and the arbitrator, under the arbitration act can choose to relax the rules, most often unless people agree to proceed in some kind of summary format, an arbitration proceeds in the same manner as a trial in a Court would.

That said, the benefits of an arbitration noted in Mark's post are the same.

TRIAL IS AN EXPENSIVE WAY TO GET YOUR POUND OF FLESH

I just completed a 10 or so day trial (really a binding arbitration).  Why did it take so long?  Were there complicated valuation issues? No.  Complicated alimony issues? No.  Custody issues?  No - custody and parenting time were already settled. 

The answer in large part was one party's bad faith and need to extract a pound of flesh.  He did not get his pound of flesh and while we await the decision, I doubt he will receive satisfaction there either?

Some examples of the nonsense.  The case started in 2006 when real estate was at its height and the marital home was appraised by a joint appraiser in early 2007.  The case lingered and trial did not start until the fall 2009.  Despite the fact that the law is clear that homes are valued at the date of distribution, the husband opposed a new appraisal.  Why - as every knows, real estate values were going down.  Since he knew that the wife wanted to keep the house, he was trying to use this to his advantage.  Due to the delays, the wife had to get an updated appraisal in January 2008 when the was originally supposed to occur.  She had to get another one in August 2008 before the trial started.  The husband held out and opposed using the joint appraiser, costing the parties more money for experts and then wasting a day trying the issue of the value of the home.

 

The husband got an employability expert to determine the wife's earning capacity.  This is not unusual.  What caused a waste of time is that he lied to his expert about what his wife did when he had a small consulting business in the late 90s, trying to portray her as not being out of the workforce, despite the fact that she probably worked only a few hours per month.

Plaintiff's direct examination was 3 to 4 hours.  The cross examination was several days.  Why?  Despite the fact that he had no evidence of it nor would it be relevant, the husband had his lawyer try to pursue an adultery claim.   He had his lawyer try to pursue issues of parenting alienation despite the fact that custody was settled and the joint expert blamed his relationship with the children in larger measure on his conduct.

In addition, he had his lawyer nitpick on minutiae that was not relevant to anything.  Even if my client got the answer wrong, it would not prove that she was not credible. 

In fact, both this cross examination and the trial in general was torturous because of the costly and needless waste of time by the husband delving into irrelevant issues, which then had to be rebutted.  This brings up another point.  Just because you are having a trial does not mean you have to address every issue and every fact as to every issue that has every come up in a case.  Courts and arbitrators don't care about such nonsense.  It only causes more in counsel fees.  While it would be easy to cast aspersions at opposing counsel's trial capabilities, clearly much of it was following the marching orders of her client - at great and outrageously needed expense of both parties.

One can only hope that when all is said and done, counsel fees will be assessed such that the husband will pay for the folly he created.

SETTLEMENT - WHO MAKES THE DECISION?

I was supposed to start a trial yesterday,but, as often happens, with the judge's assistance, settlement negotiations began.  In fact, in reality, the case probably settled about 3 times yesterday.  However, each time we tried to wrap it up, the wife changed the terms, seeking more and more.  My client, who believed that that he would probably do better at trial, made a business decision to agree to the changes, in consideration for the costs of trial, risks of loss, etc.  That was his call as we were ready  to start the trial and were thoroughly prepared.

On the other hand, on top of changing her terms over and over again, the wife became abusive to her attorney who was trying to counsel her that the terms of the proposed deal(s) were probably far better than she would do at trial.  On top of that, she had major exposure to pay the husband's legal fees based on her conduct during the pendency of the matter (multiple violation of court orders and discovery abuses). 

That gets me to the point of this post.  Opposing counsel was in an impossible position.  He knew that the deal was too good for his client but could not force her to settle.  She is essentially forcing or demanding a trial, which counsel believes is not in her best interests.  His problem became compounded when she became abusive.

At the end of the day, the decision to settle is hers.  The refusal to settle may cost her tens of thousands of dollars.  The attorney fulfilled his obligation and told her.  It may ultimately be an expensive lesson learned.

 

WHAT HAPPENS AT TRIALS

Recently, my partner, Mark Ashton, in our Exton (Chester County, Pennsylvania) office wrote an excellent post on our Pennsylvania Family Law Blog entitled "How Do Trials Work."  Too see his post, click here.

While much of the trial experience is the same, there are differences in New Jersey practice and procedure.  For instance, in Pennsylvania, it appears that many trials are conducted before a Master, who is a lawyer appointed by the Court to hear matters and make recommendations.  In New Jersey, we try cases in front of Superior Court Judges.  The only exception is when parties agree to try their matter in arbitration - though that cannot be compelled by a Court in a divorce matter.

Trials are rare.  They tell us that about 99% of the cases settle.  That said, after the discovery, appraisals, evaluations, depositions, Early Settlement Panel, mandatory economic mediation and in some counties Intensive Settlement Conferences at the courthouse, if the case is not resolved, trial is the last mechanism to get resolution.

Though each judge is different, many have a pre-trial Order requiring the parties to submit several things to the Court in advance to save precious court time at trial for the actual trial.  These submissions often include a trial brief wherein you set forth a parties position and the law and facts to support it, witness lists, exhibit lists (both for each party and a joint list), and stipulations.  Some judges actually want the actual exhibits in advance too. When we prepare, we typically put our exhibits in binders (4 sets - one for us, one for the judge, one for the other side and one for the witness). 

Stipulations are essentially a list of agreed upon facts that you don't have to spend trial time to establish.  While these are helpful, I have had at least one adversary tell me that he wont do them because it interferes with the flow of the presentation.  I think that ta ht is a valid point, but nevertheless, I try to enter into stipulations when possible. 

When you show up at the courthouse for trial, most judges will want to conference the case to give you one last chance to settle.  In fact, some attorneys show up unprepared to actually try the case because they are counting on this.  That is bad practice because the best way to be prepared to settle a case is to be prepared to try it because you are bargaining from a position of strength. 

Sometimes trial dates are really fake trial dates. What that means is that you are being called to court to try to settle, only you don't know that in advance. This past Spring, I received a call on the day before the trial telling me to be there at 8:30 the next morning ready to start the trial. Two other sets of attorneys got the same call and a third got the same call, but only to appear at 1:30. None of the four trials on the calendar for that day started. Not all settled either.

When you finally start the trial, sometimes a judge will want you to do an opening statement, or at least ask you if you want to. If there is a trial brief, an opening is not always allowed or required.

Then it is time to call the first witness. The plaintiff, i.e. the person who filed the Complaint for Divorce, gets to present testimony and evidence first. Very often, the plaintiff is the first witness. The lawyer will ask open ended questions on direct examination and the witness will get to tell their story. All appropriate areas for the court's consideration should be addressed during direct examination. Reference to documents often occurs to assist telling the story.

Similarly, sometimes charts or other summaries are prepared to both assist the Court and shorten the testimony. In fact, as long as the Rules of Evidence are complied with, they are often admitted into evidence as a summary of the testimony subject to cross examination.

Once a witness is done testifying, the other side gets to cross examine the witness. This is done by asking leading questions, where a yes or no answer only is required. A typical questions often begins "Isn't it true that ..."

The plaintiff's lawyer will then get to re-direct the witness, to clarify issues raised on cross examination. In fact, re-direct is limited to issues raised on cross examination. Sometimes there is re-cross, re-redirect, re-re cross, etc.

The same routine happens will all of the plaintiff's witnesses.

Sometimes, you call the other party as the first witness in your case. Aside from the element of surprise, if and when I do this, I try to limit it to some real key issues or admissions to get them before the Court right away. Some words of warning, the other side essentially gets to cross-examine their own witness. That can help them if the attorney thinks that they will not testify well on direct. Essentially they can be lead through their entire case, especially since the cross examination of a party witness is not limited to the scope of the direct examination, as it is for non-party witnesses. I recently put my whole client's case on in this way after my adversary made the mistake to call her during his case. Also, sometimes this can delay the trial because the witness may testify about the same issues first on cross by their attorney and then during direct. Also, if the smoking gun does not turn out to be a smoking gun, the impact on calling the other side first falls flat.

Once the plaintiff's rests their case, the defendant then gets to put on their witnesses in the same way.

After the defendant is done, the plaintiff may put on a rebuttal case to address issues raised in the defendant's case.

Note however, because of schedules of experts and other witnesses, it is not uncommon to take a witness out of turn, even during the other side's case. While you don't have to agree to this, unless there is a real good reason no to, this courtesy is usually extended.

After the rebuttal cases is over, it is time for Summations. Very often, they are written. This is your chance again to argue the facts that were proved during trial and why the court should grant the relief that your client is requesting. Some judges, require oral summations at the close of the testimony. In fact, one judge before whom I have tried a few cases allows only 20 minute oral summations.

Note also that trials are not usually done on consecutive days until they are done. Trials rarely occur on Fridays because that is when motions are usually heard. They are also not often not held on days when Early Settlement Panels are occurring. There then can be a variety of reasons why a case does not get tried continuously, even within the above parameters. I finished a case in September 2008 where our first trial date was in October 2007, our second in January 2008, our third in April, our fourth in August and our last day in September. While this is not the norm, it is not unheard of either.

After the summations are submitted, you wait for a weeks, if not months to get a decision. I have had one case the finished in July (and started in April) and we did not get the decision until the following May. Another finished about the same time, was not decided until January. In fact, I have two decisions outstanding for trial completed in August and September, respectively.

I note that these rules apply not only to divorce trials, but also to plenary hearings. A plenary hearing is essentially a trial, but usually involves limited issues. They are particularly common post-judgment, when the issue is modification, but arise in other circumstances too.

The process is long and often grueling, but sometimes necessary when parties cannot settle their differences.
 

THE VALUE OF REAL ESTATE - PROBLEMS IN THIS EVER CHANGING MARKET

I just finished a day of trial yesterday taken up be competing real estate experts regarding the value of the marital home.  It was certainly a reminder of the problems with the values of real estate in a rapidly changing market.

We first have to start with the basic premise of using the appropriate valuation date.  The case law is clear that a marital home is valued as of the date of the trial.

That caused some interesting issues in this case. The Complaint for Divorce in this matter was filed in September 2006.  The original appraisal of the home was done in April 2007.  While the market had already started to decline, both experts testified yesterday that their profession was resisting making adjustments for time (that is, if the comparable sales they were using were months prior, they were not adjusting for the decline in the market between the time of the sale of the comparable and the home they were appraisal), prior to early 2008.

Because this case is in a county that is hard to get trial time, the trial had been adjourned several times.  The original appraiser, who was a joint appraiser, updated his report in January 2008 and it should come as no surprise the the value had decreased.  It should also come as no surprise that the person that wanted to be bought out of the house objected and got his own appraisal.  This appraisal was in April 2008 and used comparables from the last quarter of 2007.  No adjustments for time were made.  The original appraiser updated his report for trial in September 2008.  Given what is going on with the real estate market, it is no surprise that the value has gone down again.

In fact, the appraiser believes that at this point, values are going down at a rate of 1/2% to 1% per month.  He also anticipates this to continue.

This case illustrates several areas for concern:

1) Best practices, which is court policy that dictates the time line of cases, will inevitably force appraisals to be done several months before the trial date.  In this market, is that not forcing the parties to get at least one more appraisal given the time delay between the end of discovery and the end of a trial? 

2)  In the event that there is a trial, some times it takes many months to get a decision.  Assuming you have a fresh appraisal report as of the trial date, in this market, if there is a several month delay, is the value as of the trial date a fair assessment of value for equitable distribution?

3)  Does it make sense in this market for one party to keep the house and either buy out the other spouses interest from the equity or offset the other side's share of the equity against other non-real estate assets?  With the prognostications regarding the continued decline in the market, would it not be most fair to sell the house so that the pain is shared equally and then divide the rest of the assets, in-kind?  I suppose it depends on how long the person getting the house plans to stay there.  If it is a long time, maybe it makes sense to keep the house.  If it is a short time, probably not so much. 

The equitable distribution statute requires a court to look at the income producing aspect of the assets received in equitable distribution.  While you don't see this done too often, how should a court look at an asset that is expected to continue to decrease in value for the foreseeable future. 

What this all means is that we need to think our prior thinking about what to do with the marital home in this declining economy.

 

SOME TIMES YOU JUST HAVE TO TRY A CASE

Several months ago, I posted a blog entry entitled "All Cases Have a Life of Their Own"  To view that entry click here.  The premise was that while most cases settle, they usually will not settle until both parties are ready, emotionally and otherwise, to move on.  That may be the case even if a party's best case resolution is on the table from the outset.  If they are not ready to settle at that time, they will not.

In a more rare occasion, a party is never ready emotionally to settle and a case just has to get tried.  That is unfortunately the case in a matter that I have that is going to trial next week.  Because of the other party's mind set, my adversary has for many months told me that the case would be tried.  He did not tell me this as a threat or to get leverage - just as a fact.  In fact, a settlement proposal we made has been pending for about a year without a response.  In addition, no bona fide efforts were made by the other side to settle at either the Early Settlement Panel, mandatory economic mediation or the Intensive Settlement Conference.  During the party's recent deposition, he said that "it was too late" to settle, once my client hired an attorney. 

Obviously, this is no consolation to my client who has been eager to try to resolve this matter from the start.   Hopefully, the remedy will be a generous award of counsel fees at the end of the trial to compensate my client for having to endure the husband's conduct which has been nothing short of unreasonable, if not bad faith.

THE MCGREEVEY BATTLE ROYALE

I have eagerly awaited the news accounts each day of the ongoing saga of the former first family of the State of New Jersey. 

While by all accounts, there is some exceptional lawyering going on, one cannot help to think that this is a case that should have been settled or that one or more of the parties is using the trial to settle personal vendettas. 

Thankfully for the parties' child, they settled custody and parenting issues.  However, as the judge admonished at points in the case, their daughter is going to be able to read all about her parents' divorce by just typing hers and their names into Google.  And for what?

 While their marital lifestyle was perhaps unusual from the common folk, in both financial and other ways, at the end of the day, this was a short marriage. The testimony from both as reported suggests that there was no savings and few assets.  The disputes as to alimony seem absurd because even if there was a viable claim, how much could it have been for.  The legal and experts fees had to have exceeded the claim. 

Again, I don't know all of the facts and only know what I read.  However, I always tell my clients that you don't want to spend $10 in legal fees to get $5 back.  I wonder at the end of the day whether the battling McGreeveys will have done just that.  If so, that is good for no one - even the lawyers.  Moreover, I hope that the trial was not a vehicle for either to get the last of their 15 minutes of fame while at the same time, preventing parties with real issues from getting their day in court.

CAN YOU JUST GIVE ME A NUMBER?!?

Previously I blogged about the fact that cases have a life of their own and will only settle when both parties are ready.  As I was trying to settle a case today that is scheduled to start trial in Morris County next week, I was reminded of a related issue.

In this case, we have had a hard time getting the other side to negotiate.  They have taken a position that we don't think is reasonable nor supported by the facts or the law.  That said, we have made proposals to try to resolve the case.  In fact, at each time we have been required to negotiate (at the Early Settlement Panel, mandatory economic mediation (several sessions) and at an Intensive Settlement Conference), we have made proposals.  In some ways, it was against my normal practice to not bid against myself, but the client wanted to at least try to stir some movement. 

At each point, rather than provide a counter proposal, the other side has tried to wow us with, to put it nicely, "fuzzy math" in order to justify why they are right and we are wrong.  They have never, however, moved off of their proposal on support in any significant way. 

I finally had to tell the opposing counsel to just give me a number without the explanation or argument because I wasn't going to buy their theory, ever, and the theory didn't make a difference if the number was acceptable.

In fact, this is not unusual when trying to settle matters.  That is, sometimes the theories and explanations will bog things down.  The bottom line is that if  the parties agree on the number or a certain resolution of a non-financial issue, in many instances, it matters not at all how or why you got to that number.  In fact, the explanation may just start the argument again. 

Sometimes, it is more important to just give a number than explain how you got there.  If the number is fair and within the realm of reason, and the parties can live with it, it is sometimes better to be settled then win the debate which may only prove more costly.

Divorce Arbitration - A Closer Look

Some times, despite all of the parties' best efforts - or in other cases, where one or both parties have no desire to settle, a case has to be litigated.  Trials are costly, for reasons you would think of, and also, for reasons that most people don't consider.  A good rule of thumb is that for each day of trial, there will be one or two days of time for preparation.  When you consider that both parties have to testify, as well as accountants, business appraisers, custody evaluators, real estate appraisers, employability experts, as well as a whole host of lay witnesses depending on the issues involved in a case, the actual known costs can be substantial. 

The hidden costs are the time spent waiting around.  Often times, you may be in the Courthouse from 8:30 a.m. to 4:30 p.m., and with interruptions, other matters and breaks, you only get a 3 or 4 hours per day of trial time.  Additionally, it is not uncommon for trial dates to not only be non-consecutive, and sometimes, there are several weeks if not months between dates.  I am currently in the midst of a trial where we had one half day in October 2007, another half day or less in January 2008 and another date scheduled for April.  Each time you go back, you have to re-prepare. 

While some cases that require a decision need to be arbitrated because the parties may not want to present certain issues to a Court, other cases that require a decision may be good candidates to avoid the above delays.  Often with arbitration, you can select days if not weeks in blocks thus condensing the time that the process takes.  In addition, without the interruptions that you will inevitably have in a court, the time spent at the arbitration can actually be spent arbitrating.

In advance of the arbitration, the parties can decide whether they want it to be binding (i.e. essentially, what the arbitrator decides goes) or whether there is a right of appeal.  The parties can decide whether then want a court reporter present or not.  The parties can even designate the scope of an appeal.  While the arbitration act provides a very limited scope of review, parties can agree that the decision can be appealed for the same reasons as could a judicial decision be appealed.  However, in what was made clear in a 2007 reported decision, the parties cannot confer jurisdiction to hear the appeal on the Appellate Division. Rather, the matter would have to be decided by the trial judge.  Click here for a copy of the case.

I recently completed a more than 10 day arbitration and the experience was extremely positive, for all of the reason expressed in this post. 

In any event, while there could be added costs associated with paying an arbitrator and court reporter, if the arbitration can be done more efficiently, if not more quickly, than a trial, it is a viable option in the right case. 

Mediation - A Closer Look

While statistically, 99% of all cases settle, some cases take longer than others to get there.  Moreover, some cases require the assistance of a third party to help one or both party or attorney get past whatever it is that is holding the case up from resolving itself.

I, for one, have been skeptical of mediation in a number settings.  The first is at the onset of a complex matter where one party is pushing for mediation and there hasn't even been the most basic exchange of information at that time, much less formal discovery.  I have even seen cases where the party with the documents will not provide them in advance of mediation and will only bring them to mediation and take them with him at the end.  The second setting that gives me cause for pause is when parties attend mediation without counsel and there is a great imbalance of power between the parties (consistent with the imbalance of power that permeated the parties' relationship).  In these instances, unless there is a strong mediator that will protect the disadvantaged spouse, I have often seen such mediations result in a "settlement", but one where the disadvantaged spouse got a "deal" that was neither fair nor reasonable, if not unconscionable.  The problem in these cases is that often, once there is an "agreement", the person that got the great deal refuses to concede anything.  Thus, a method meant to avoid litigation can often create litigation. 

However, in this day and age in New Jersey, the court mandates mediation at two junctures of the case (unless there is a domestic violence restraining order.)  The first is early on in the case when the parties go to custody and parenting time mediation conducted by court staff.  This is meant to ferret out the true custody dispute.  That said, I make sure that my client is prepared before they attend this mediation because it often results in a resolution of the issues and I want that resolution to be one that my client actually has considered in advance and is comfortable with.  As such, we often prepare a parenting plan, in advance, which deals with the regular parenting time, legal custody, holidays, vacations, etc.

The second mandatory mediation is economic mediation which takes place after an Early Settlement Panel.  Attorneys usually are required to attend with clients.  This is often the time when a case that is more than your run of the mill case will settle.  By this time, it is expected that most, if not all of your discovery will be done. Unlike the Early Settlement Panel where the panelists have a short time to consider the issues, the mediator can spend more time to flesh them out and more importantly, facilitate a dialogue and negotiation. 

In some cases, the impartial voice of the mediator helps one or both parties get past an issue that they are stuck on.  Put another way, when either the client's attorney has told the client time an again of a probable result, or if the attorney is presenting the strongest position regarding an issue as an advocate, the mediator, who has no axe to grind, may be just what is necessary to put the issue to bed.  In other cases that I have seen, sometimes one of the attorneys doesn't handle exclusively family law matters and/or is otherwise less confident.  In these cases, the mediator essentially can let the attorney know that the deal is fair.

I have been involved in cases where the parties were more than $20 million apart and seemed headed for a trial that would have lasted several months.  However, after 8 to 10 days of hard work at mediation, the case settled, saving both parties tens if not hundreds of thousands in legal and expert fees that would have been incurred at a trial.

The bottom line is that most people truly want to settle their cases in a fair way.  We always hear anecdotally that cases that settle come back to court far less often than cases that are tried.  We also hear that people that settle their cases are far more satisfied with the result than if they tried the case.  In a trial, the litigant gives up control of their life to a judge that doesn't know them and will only hear bits and pieces of their story - along with the hundreds of other cases they have.  Mediation with a skilled mediator, where the playing field is level, the parties both have all necessary information and the imbalance of power is kept in check, is excellent way to keep control of your life and resolve your matter in a fair and beneficial way.

Check back for future entries regarding arbitration and trial practice.  While most cases do settle, if litigation is required, we are skilled at handling matters that require a trial, as well.