Employers Settling Claims Out of Court

Will Employers Settle Claims Out Of Court?

Oftentimes, employers will decide that it’s more economical and a better option to settle matters out of court versus in court. The latter which would involve a lengthy litigation and a costly litigation at that.

In general, well over 80% of cases settle out of court. That’s because oftentimes both parties find it to be a more reasonable end result to settle them out of court to save on the cost, the risk, and the time of moving forward with a lengthy protracted litigation. If you start a claim, your matter won’t necessarily go to court. Oftentimes just playing out a court process is enough to have the offers happen through negotiation meaning an end result that the parties find more reasonable than taking their chances at winning in court.

What is the Mediation Process?

All actions in Ontario must proceed to a mandatory mediation. Mandatory mediation involves parties meeting at a neutral location oftentimes with the assistance of a neutral unbiased third-party mediator. The mediator at a mediation is not a judge. The parties are not under oath at mediation. It’s a fairly informal process. Many times the parties find that the results that they are able to obtain at a mediation are better overall than the cost, the risk and the time that they would have to incur by going to court and getting a result.

There’s no controlling the judge that you will get in court whereas through the mediation process, the parties often through their Council, will consent to use a mediator that is definitely within their control.

Oftentimes at a mediation, the results that the parties are able to get are more attractive than the result that would otherwise be imposed at court from a judge. Parties at a mediation can come to unique terms. They can create a deal that’s very much their own and they can enforce those terms.

When a plaintiff decides to go to court and have their claim decided by a judge, they effectively give up control over the outcome of their claim. They may come in having expected odds, but effectively no control whatsoever over what the judge is going to decide.

When the parties resolve matters at mediation, number one they select the mediator on consent. Number two, they can come to terms that are very much their own, and number three a mediation agreement is very much enforceable just like a judgment from a judge so it effectively from a legal perspective means the same thing as a judgment.

This video is by Employment Lawyer Miguel Mangalindan. For more information, please get in touch with us at Monkhouse Law.

Monkhouse Law is an employment law firm located in Toronto focusing on workers’ issues. Give us a call at 416-907-9249 or fill out this quick form. We offer a free 30-minute phone consultation.

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