North Carolina Mediation Clauses
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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.
In some types of cases, North Carolina law requires that the litigants to engage in mediation before a lawsuit is filed. Those types of cases include farm nuisance disputes, some insurance claims, public records disputes, and condominium and homeowners' association disputes.
Mediation involves a neutral third party which has no authority to settle the dispute. The mediator is not a judge or arbitrator but a facilitator. A mediator simply encourages the parties to reach agreement. Mediation does not focus (backwards) on rights but is rather future oriented on needs and interests.
The mediation clause recognizes that both parties have considered, and are open to, the mediation process. When disputes arise among parties who have previously recognized the value of mediation, there is usually no need to force one party to participate.
It may be easy to establish who is at fault, but you do not want to go into mediation saying things like, ?This is all your fault? or ?If not for you, I wouldn't have been injured.? Placing blame can raise the other party's guard, which could make them less likely to compromise.
The United Nations (UN) Guidance for Effective Mediation describes mediation as a voluntary process ?whereby a third party assists two or more parties, with their consent, to prevent, manage or resolve a conflict by helping them to develop mutually acceptable agreements?.
Mediation is an informal and flexible dispute resolution process. The mediator's role is to guide the parties toward their own resolution. Through joint sessions and separate caucuses with parties, the mediator helps both sides define the issues clearly, understand each other's position and move closer to resolution.
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.
