1992_05 Insight May 1992

              Alternatives to lawsuits gain in popularity
By Kimberly Foster
StaffWriter   	
More man 100 million legal
cases were filed in 1990 at
trial courts in the 50 states,
Washington D.C and Puerto Rico,
according to statistics released this
.year by the National Center for
, State Courts.
Thafstheequivalentofonecase
. for every other adult In the coun-
. toy-
In many counties in California, courts are extremely congested. LA. isan extreme example.
Civil cases there might wait five
years. In other counties it might be
. two years," said Sheila Purcell,
, disputeresolutionprogramdevel-
oper for the State Bar of California.
Many people in California are
turning toalternative disputeresolution (ADR) programs as a more
accessible Option. ADR refers to a
broad range of processes designed
to settle disputes outside of a formal trial.
Two of the most common types
"of ADR are mediation and arbitration. Purcell defined mediation as
a voluntary process where a neutral person helps people "work
out a solution that they can live
with."
The neutral person in an arbitration, however, has the authority to make the final decision for
the parries, and that decision may
or may not be binding, she said.
Purcell said that an added benefit of ADR is its flexibility because sometimes what people are
going to court about isn't even the
real problem.
"If someone goes to court be
cause of his neighbor's parked car
in the driveway, he may not care
about the parked car. There might
be underlying issues with his
neighbor mat would not be allowed to surface in a court trial,
but that could be addressed in a
less formal situation," Purcell said.
Some community-based ADR
programs have been around since
the early 1970s, and California was
a leader in establishing a mandatory mediation process for settling
child custody disputes, Purcell
said.
Since the Dispute Resolution
Act of 1987 set up funding and
regulations for public ADR programs in California, numerous
state la ws and pending legislation
have continued to expand and enhance the use of ADR.
If passed, Assembly Bill 3011
will require anyone in California
seeking dvil litigation to first meet
face-to-face with the opposing
party in order to discuss appropriate ADR options. The bill also sets
a standard for using ADR in some
criminal cases.
Twenty counties in California
offer publicly funded ADR programs at little or no cost to disputants, but Fresno County is not yet
among them.
Attorney Sam Palmer, president
of the Fresno County Bar Association, said Fresno is in the process
of forming an ADR program to
present to the local courts.
Palmer said in his private practice, he encourages clients to
handle disputes informally and
that he often mediates for potential litigants even if the parties involved can't afford to pay him his
professional rate.
"I do it because I like to do it. I
prefer for the people themselves
to come up with the decision; and
in my experience, ifs the people
that know what is really fair."
Palmer also said that the state
doesn't havemoneyforadditional
judges or courthouses. A 1990
RAND study found that ADR programs can save courts up to five
times the cost of traditional court
processing of civil cases.
"The traditional court system
can foster suspicion toward the
prrxessitself.lt we can beakinder,
gentler system, and of course, less
expensive, I am 100% for it,"
Palmer said.
Two privately funded ADR or
ganizations in Fresno are already
offering alternatives to the traditional system: JAMS, Judicial Arbitration and Mediation Services,
Inc., which handles civil disputes,
and VORP, Victim-Offender Reconciliation Program, which primarily handles juvenile criminal
cases, although some adult mediation services are available.
More than 100 retired judges in
the state hear disputes on a part-
time bases for JAMS. This "rent-a-
judge" service allows parties involved in a dispute to select the
day and time of the hearing, the
type of hearing they want and
whichof JAMS' retired judges they
want to facilitate or render the final decision in their case.
Defaults of student loans
make lenders cautious
By Linda Beltran
Staff Writer
loans," said Joseph W. Heuston   rather lightly.
Jr., the director of financial aid.        "I've heard people admit that
Rowena Hale, a student loan   if they can't pay their loans, they
Students who have taken out representative for Wells Fargo will just declare bankruptcy as if
student loans should mark Banksaid that loan origination itisthisgreatalternative," Magos
November 23, 1992, on their for their bank increased signifi- said. "It's as though they think
calendar now. Thafs when the cantlv which would also make thattheycandeclarebankruptcy
six-month grace period endsand defaultsa natural repercussion, and then start life again with a
loan repayment begins. "We have exceeded our loan   clean slate."
FromApriI21 thru May 22, as origination goal by 18.34 per- According to Bunting, student
manyas650graduanngscudents cent. Hale said, "In total we loans can be automatically dis-
who have any loan balances will have lent over $71 million to charged in bankruptcy only if
be expected to attend an exit in- students for educational pur- the loan has been subjected to
terview to be counseled on pay-    poses." collection for more than seven
ment plan, interest rates and the        Closer to home, unlike some   years prior to the filing date of
consequences of defaulting. campuses whose loans pro-   Bankruptcy.   This seven-year
Miguel Magos, a senior edu- grams are cut due to excessive period does not mean that pay-
stand the concern of the lending little to worry about means only that payments were
institution regarding repayment, Heuston said that CSUF has supposed to be made,
but he was taken back on how only a 9 percent default rate on "By the time someone comes
soon they are making students Stafford Loans, (formerly GSL to me, they are usually buried in
aware of payment. loans.) which are serviced by debt," Bunting said. "Creditors
"I know people who received the government. In addition to havebecomeabusiveandinsome
reminder letters a few months the Stafford loans, Perkins cases have begun to disrupt the
ago," Magos said. "Obviously loans, which are serviced com- client at work. But even at this
th^aretawngmeasurestomake pletely by CSUF, have an even point, I still make the attempt to
sure that people don't forget that    lower default rate.                     avoid barJcruptcy if at all pos-
t that peopledon't forget that
their loans will soon be due, but
I can't say that I blame them"
Magos said that with less jobs
to be had, his job search could
take at least six months, if not
more, and lenders are probably
Lee Spencer, a student aid sible.
accountingofficerwhohasbeen "Bankruptcy stays on your
employed at CSUFfor 25 years, credit record for lOyearsand has
said that the default rate for bearing on almost every thing'
Perkinsloansisl .84 percentand you do," said Bunting. Even rent-
,     while that is something to be ing an apartment becomes
wary of possible defaults.             proud of, there ip something troublesome he said.
Peter Bunting, an attorney in    else about this loan process that "Management for some of the
Fresno whose emphasis is bank-    is more gratifying. largercomplexesclearlystatethat
ruptcy, agreed with Magos.               'This program has survived if you have declared bankruptcy
"Statistics show that due to    for over 15 years without any within a specific time frame, you
the recession, bankruptcy in on a    assistance from the govern- will not rent at that complex,"
definite rise." Bunting said, "But    ment," Spencer said. "We have Bunting said.
.'think that there is more accept-    a reserve of $800,000 to con- Bunting feels that the need for
ability and the stigma of declar-    tinue to fund loans." However, bankruptcy is essential.  If it is
ing bankruptcy has also de-    Spencer said that if for some evidenMhat a client cannot pay
reason students began to de- his deots and is being badgered
fault, the only people who by creditors, chances are he will
would suffer would be future lose his job and then become un-
students who would seek assis- productive and still be in debt,
tance from the program. he said.
"If a school continuously ex- "It is more productive and
hibits a high default rate, the makes more economic sense to
loan program will be removed file bankruptcy," Bunting said.
from the school," Heuston said. "Being that we have a capitalistic
"Vocational schools and society that allows us to open a
community colleges tend to business, it is natural that we
have a much bigger problem would see a high number of fail-
with defaults and I know that ures also."
there have been a few voca- There really is nothing to be
tional schools that have been ashamed of," Bunting said,
educational loans are becoming    shut down completely." "Abraham Lincoln was supposed
a growing concern for lending        Theproblem that sometimes * to have filed for bankruptcy sev-
institutions across the country.      exists with defaulting on a loan eral times throughout his life."
"Nationally, there is close to a    is that students tend to take the
$4 billion debt from student    legal ramifications involved
According to Ellen Rego,
deputy clerk in charge of bankruptcy, said that as of close of
business on Wednesday, April
29,650 cases had been filed for
the month of April alone.
"In January there were 506
cases filed; there were 573 for
February and for March there
were 675 total cases," Rego said.
All combined, 2,404 cases of
bankruptcy have already been
filed in federal court for 1992.
Not to be excluded, student or
"It makes so much sense, you
just can't believe it," said Justice
Charles Hamlin, who has been
with JAMS since 1989 when he
retired from his position on the
California Court of Appeal, Fifth
Appellate District.
JAMS reports that over 90% of
the non-binding disputes it
handles are successfully resolved
without going to court.
"Ninety percent of civil cases
end in settlement anyway, and in
the traditional court process,
judges are often doing 10 settlement conferences in one or two
hours," Hamlin said.
Through JAMS, Hamlin said he
can take his time and get a better
understanding of all the issues involved.
He said by far, the majority of
the cases he handles are binding
arbitrations.
"Most people want that to be
their day in court," he said.
Additionally, more and more
health care organizations and insurance companies are stipulating in contracts with their clients
that most types of cases must be
handled by arbitration and that
the arbitrations will be binding,
Hamlin said.
People are also sometimes referred to JAMS by court order,
said Pauline Henderson, a judicial
assistant for JAMS.
JAMS charges an initial filing
feeofSlOO per party plusanhourly
fee of $115 per party. Or, parties
can opt for a resolution by mail for
a flat feeof$150perparty,in which
case a jurist will render a verdict
within five working days.
While JAMS works closely with
the court system; VORP is an international organization working
primarily with the law enforcement system The program's goal
is to provide an opportunity for
communication and restoration
between victims and offenders.
The program's Fresno chapter
handles about 350 cases a year,
most of which are referred by the
police department or Fresno
County Probation Department.
Hearings are mediated by
trained volunteers at no cost to
any of the parties, whose only obligation is to agree to be constructive.
Attorney Russell Templeton,
who volunteers as a mediator and
board member for VORP, said the
program has the capacity to get to
the heart of the problem and curtail recidivism.
"Each person is given a chance
to discuss the facts and feelings in
the case.
"Offenders can see first hand
the effect of their actions on the
other person's life and are given
an opportunity to make it right
The victim can see that the offender is not just a hoodlum, but a
young person," Templeton said.
"In cases where restitution is
decided on, VORP has a collection
rate of 80 percent, compared to
court-ordered restitution of not
even 20 percent," he said.
"If they went through the system, offenders would just get a
letter from their probation officer
or do a Saturday of community
service. The victims would never
get paid back and the juveniles
would never have to take responsibility for what they have done."
PFLAG, from page eight
second Sunday of each month at tion, Laurie Cobum, talked about    tional booklets and the cost of
Wesley United MethodistChurch, the PFLAG organization.                fliers, postaee, rent at the church
from 230 to 4:30 p.m. "We had five local phone calls    arvd material for the media.
Each meeting starts with a rap in response to the number being Many PFLAG members and
groupwhereindividualscanshare shown on the Jenny Jones show,"
concerns, questions and under- said Jerry Ward, treasurer of
standing about the homosexual the Fresno chapter,
person in their family. Then they About seven months ago, Jerry
have a speaker whose topic in- and Kathy Ward were on Sum Up,
eludes subjects pertinent to the on Channel 47, and told the corn-
families of gays and lesbians. munityabout theorganization and
Some of the speakers have in- some of the material they have to
eluded: Dr. Al McLeod, professor offer.
of sociology at CSUF; Dr. Sari The organization always has    doeTconcem me is a generally
Devorkin, professor of counsel- three booklets to offer to people    misinformed, hostile society that
'"S/^specmleducabonatpUF; who come to the meetings, or who    may prevent her form achieving
and Adele Starr, first president of call in for information. About Our    ner potential," a mother and
the PFLAG Federation, regional Children (written in four Ian-    PFLAG member said
director and president of the Los guages). Why Is My Child Gay?,        jerry Ward said ' "Unfortu-
Angeles chapter. and Coming Out To Your Parents,    mteiy> a ,ot of ^^5 deal with
The Federation is PFLAG sna- can help people that are newly    theirchild'shomosexualitybynot
tional headquarters which islo- introduced to the topic by under-    dealing ^ it. But at 0u7r ^
cated in Washington D.C. This standingandbecomingmorecom-    jngs tn%y can deaj ^j, it by „et.
chapters, formed in 1981 and cur-    fore actually discussing it with    the other members."
rently has a staff consisting of a    someone.
president, an executive director. Parents, other relatives, gays,
lesbians and other concerned
other concerned individuals
marched in the Gay Pride Parade
last year and are planning to march
in future parades in hopes that the
community and society might become more understanding of homosexuals.
"I am not concerned about my
daughter's homosexuality. What
nine full-time employees and
many volunteer workers.
PFLAG has a toll-free number
that is shown across the country
in hopes that homosexuals, friends
r relatives of homosexuals will
people are invited to attend the
meetings and will receive a bimonthly newsletter and educational booklets.
To become a registered mem-
call to get the local phone number ber of the organization there is a
for the chapter in their town. membership fee of $15 per year
The toll-free number (1-8004- for single persons, or $25 per year
FAMILY) was recently shown on fora household membership.This
the Jenny Jones show when the includes the newsletter, a news-
program director of the Federa- letter from the Federation, educa-
Kathy Ward said she feels the
organization helps homosexuals
"come out" to their parents, in
rum, helping the parents "come
ou f about their homosexual child.
"The homosexuals that come
to our meetings don't feel isolated
because there's no one there to
judge them," Kathy Ward said.
"Intact, a man said to me at one of
our meetings. This is the first time
I have said out loud that.I am
gay.'"
New SChOOl, from page eight
Cathleen Loving, science education professor,
said that hands-on learning has become more
widespread at the elementary school level.
"The biggest changelin science education) isin
moving away from the passive lecture to the
interactive classroom where students engage in
'doing' and not just listening to someone," she
said.
Palados said that a unique aspect of Susan B.
Anthony, which has been in the planning stages
for three years, is that it will be a community
school as opposed to a magnet school that purposely tries to attract students from outside its
service area.
Ziegler said that Susan B. Anthony will take an
interdisciplinary approach to its curriculum. "A
science story line will run throughout the curriculum," he said.
For example, students in literature and social
science courses may read about prominent figures in the science field.
Palados said that Susan B. Anthony will be a
state-of-the-art, multimedia school equipped with
computer stations in each classroom and a si
lite dish.
asatel-
She said that it will be modeled similarly to
the much-acclaimed Balderas Elementary
School that is also located in Fresno.
Owing to the expense of the school's high-
tech equipment, Palados said she is seeking
alternative funding in light of the economic
recession.
"We will be looking for business partners
and resources in the community," she said.
Palados said that it is important to instill a
love of math and science in children at a young
age in order to prepare them for high school
course work in those areas.
"Students have to be comfortable and they
have to have a solid foundation.
"Students will not enroll (in advanced sd-
ence and math courses] if they do not feel comfortable," she said.
Ziegler agreed that by getting students interested in math and science at a young age they
will have less anxiety and fear about taking
courses in those areas when they grow up.
"1 would be shocked if a high percentage of
the students did not go into technology-based
careers," he said.
...