Department of Transportation
The Pennsylvania Department of Transportation (PennDOT) assessed the difference in bid price against a successful bidder after that bidder backed out of the contract subsequent to the bidaward and PennDOT had to contract with the next lowest bidder. The withdrawing bidder contested the assessment, claiming that the cost would seriously hinder its ability to bid on future PennDOT work. Despite this current dispute, both PennDOT and the bidder had a strong interest in maintaining an ongoing relationship. Specifically, PennDOT believed the bidders ability to seek future work would add competition to the process and ultimately lead to lower costs for the Commonwealth. As a result of this successful mediation, PennDOT agreed to reduce the amount sought and the parties reached an understanding regarding the bidders ability to seek future PennDOT work.
Department of State
The Department of State requested mediation on a recent licensure action. The Department of State was on the verge of revoking the persons professional license due to what appeared to be repeated fraudulent submittals to the Department. However, after the parties spent several hours speaking with one another in the joint session, and then huddled briefly in private sessions with their respective counsel, they reached an accord. Agency staff realized the licensee was not a person who would deceive them, and the licensee realized his recent hire was filling out the forms incorrectly. He agreed to keep closer watch over his employees work. The licensee was greatly relieved to be able to keep his license and his reputation. Agency staff were similarly pleased. (As was the mediator.)
Human Relations Commission
A prospective employee filed a complaint with the Pennsylvania Human Relations Commission against a private employer, alleging racial and age discrimination,as well as retaliation, as the causes for refusing to hire the individual. Through mediation, the parties discussed what had occurred and reached a confidential settlement.Neither party accepted liability, and the resolution allowed each party to get on with business and life. Perhaps equally important, they alone could control the outcome of the dispute.
Department of Public Welfare
In a pharmacy dispute with DPW, counsel estimated a savings of litigation costs ($5,000), savings of time ($3,500) and other benefits ($10,000) after a successful mediation.
Office of Inspector General
A dispute with the Office of Inspector General resulted in a savings of 225 hours of time and an estimated $11,000 in litigation costs after a successful mediation.