What is the cost of going to mediation?
There are various components to the cost of a mediation.
A mediation needs to be held in an appropriate location. This will comprise of a large meeting room for joint sessions with all the parties plus at least one, smaller breakout room, for the mediator to speak privately and confidentially to a party. Generally, it is best not to be on the premises of one of the parties as this can sometimes be perceived as giving them a home advantage. Should this not be an issue, then this is the most cost effective way. A variety of other facilities are available, ranging from converted bungalows to hotel conference rooms. The cost of the rooms is traditionally shared equally between the parties.
Any costs incurred by the mediator as a direct result of the mediation is payable, by an equal share, between the parties. This includes, but is not limited to:
- Travel (flights, taxis)
- Accommodation (if location is more than 100km away from the mediators home)
Mediators have to charge for their services, similar to lawyers, doctors and accountants. Here at mediate.co.nz we have a sliding fee scale dependent on the nature of the mediation. We set aside limited time each month for community or not-for-profit organisations whereby we do this on a pro bono (no charge) basis. Our fees for individuals, companies and other legal entities are as per the table below. As this fee is traditionally shared between the participants at the mediation, the fee that each party pays of the mediator's fee is generally less than 2% of the value of the whole dispute. Please contact us for a mediation quote for your particular circumstances. All mediations booked include an hour of preliminary phone consultation. Should any additional phone consultation be required after the mediation is booked, then this is charged out at a rate of $295 per hour plus GST and the apportionment of this is addressed at the mediation itself. The fees below are based on two party mediations. Please contact us for specific quotes should there be three or more parties.
Value of the Dispute Mediators Fee (GST Excl) per day per party
Less than half day (5 hours) $1,450
Day rate (over 5 hours) $1,950
Each party must pay for their own preparation and advisors on the day. This can be money well spent because, in the unlikely event (approx less than 10% of cases) that your mediation does not settle, the work done here will, more than likely, have to be done in preparation for a court trial anyway.