Mediation is a form of alternative dispute resolution that parties use to address disputes outside of court. It is often used for family, civil and business disagreements. Since mediation is cheaper, less formal and relatively faster than traditional court cases, many people choose it to resolve their issues.
However, there is a common misconception that mediation decisions are legally binding the way court orders are. What’s the truth?
Binding, but not in the same way
Mediation decisions themselves are not legally binding in the way that court decisions are. Mediation is a voluntary, private dispute resolution process where a neutral third party, called the mediator, helps disputing parties come to a mutual agreement. Remember that the mediator does not have the authority to impose a decision on the parties, but merely facilities discussions and help parties reach a mutually agreeable solution.
If all parties agree to the terms and sign the agreement, it becomes a contract. As such, it is enforceable by law. However, it is not enforceable as a judgment or court order. It is merely enforceable as a contract.
How it works
If one party fails to adhere to the terms of the mediation agreement, the other party can enforce the agreement in court. The judge will review the mediation agreement to ensure that the parties entered it voluntarily and its terms are clear and enforceable. If the contract meets these conditions, the court can issue orders to enforce the agreement, potentially including penalties for non-compliance.
How you can protect your rights and interests
Whether you are mediating family issues or contract breaches, it is important to seek the guidance of a legal representative experienced in mediating cases or representing parties in mediation. They can provide you with valuable insights that can help you resolve your case with your best interests at hand.