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Generally, mediation clauses are enforceable. However, mediation is essentially a consensual process, and a settlement is unlikely if one party is forced to participate. The mediation clause recognizes that both parties have considered, and are open to, the mediation process.
Notes: This clause creates an obligation to refer a dispute to proceedings under the ICC Mediation Rules. It is designed to ensure that when a dispute arises, the parties will attempt to settle the dispute using proceedings under the Rules.
Mediation can be helpful in resolving legal disputes. It is not legally binding unless the parties enter a settlement agreement, also sometimes referred to as a mediation agreement. Mediation can also be legally binding if it is court-ordered.
Mediation is a flexible, informal process in which parties talk together with the assistance of a trained neutral mediator to try to resolve their dispute. The mediator has no power to decide the case or impose a resolution. The parties control the outcome.
Sample Mediation Clause If the parties mutually agree to submit to Mediation, any such Mediation shall be administrated by National Arbitration and Mediation (?NAM?) and governed by their Comprehensive Dispute Resolution Rules and Procedures and the Fee Schedule in effect at the time such claim is filed with NAM.
At its simplest, an ADR clause allows the contracting parties to agree that if a dispute arises, they will use an alternative form of dispute resolution (such as mediation) as a step prior to, or at least alongside, court action or binding arbitration.
Subject to the principles of impartiality and self-determination, and if qualified to do so, a mediator may (1) discuss a party's options, including a range of possible outcomes in an adjudicative process; (2) offer a personal evaluation of or opinion on a set of facts as presented, which should be clearly identified ...
Sample Mediation Clause The parties agree that any dispute or controversy, arising out of or in connection with this Agreement or any alleged breach thereof, shall be subject to mediation if all parties agree thereto.