Mediation: Coming to a Financial Services Dispute Near You

You can expect to see mediation – and a push for settlements – play a larger role in financial services litigation from 2012 onwards. 

“Recent legislative, regulatory and economic developments have the potential to profoundly affect the likelihood that mediation will become even more attractive and may assume a larger role in the resolution of cases involving the financial services industry,” says V. James Mann, Esq., a mediator with JAMS and former Senior Vice President at Merrill Lynch where he served as in-house counsel. “For example, Dodd-Frank has brought into question the continued viability of pre-dispute arbitration agreements, increasing the probability that securities customer litigation will be filed in the courts.” 

Mann says the probability of increased litigation will push all sides to pursue mediated settlements. And, he notes, the structure of mediation will likely appeal to parties in financial services disputes. 

“Mediation allows great flexibility in adapting the process to meet the unique circumstances of a given situation,” says Mann. “The timing and the structure of the proceeding are generally completely controlled by the participants.  Facts that may be persuasive, but perhaps would not be admissible at a hearing, can be raised in mediation.  The confidential, without-prejudice nature of the proceedings and the ability of a good mediator to facilitate communication allow a degree of candor that would not be prudent in a different context.” 

Mann is available to write an article outlining how parties involved in financial disputes can best prepare for and make use of mediation to achieve settlements.    [11/22/2011]