A Statistical Summary Prepared by the Department of Justice

If anyone needs statistical evidence that Alternative Dispute Resolution saves money and reduces litigation, here it is. Last year the government saved over $12 million in litigation and discovery expenses, over 14,600 days of attorney time, and avoided over 1,200 months of litigation by the use of alternative dispute resolution (ADR) techniques, according to the U.S. Department of Justice. These savings were achieved primarily through the use of mediation at a cost of under $2 million. Six dollars saved for every one dollar spent is pretty good cost/benefit ratio, if you ask me.

This data is being reported by the U.S. Department of Justice Office of Dispute Resolution (ODR). The ODR was set up to develop Justice Department policy regarding the use of ADR.

These are just the government's cost savings and, according to the ODR, are "based on detailed case reports submitted by the lead trial counsel in all cases in which a private neutral conducted an ADR process in Department litigation across the country."

Also note that in 2011 nearly 75% of the voluntary ADR proceedings (cases in which the government and other parties agreed to ADR without being ordered by a court) were "resolved" (i.e., settled). About 50% of cases ordered into ADR, by contrast, were resolved - still a significant percentage but perhaps an indication of why voluntary ADR works so well.

This chart is pretty strong evidence of the cost-saving benefits of ADR.

Source: U.S. Department of Justice, Office of Dispute Resolution

If you’re interested in finding out more about Press, Dozier & Hamelburg, LLC’s alternative dispute resolution practice and information on mediation and arbitration, please see our alternative dispute resolution page.

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