Pennsylvania Mediation Clauses
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FAQ
If the mediation occurred as part of a lawsuit, the court can enter an order that encompasses the agreement's terms. If it was not part of a lawsuit, then the written agreement will be enforceable as a contract.
The negotiations that took place in mediation stay confidential and cannot be used in court. If the Case Settles, there is usually a private written agreement. The agreement can include provisions for what happens if someone violates the agreement.
If there is clear wording in the contract that provides for the survival of the dispute resolution clause in the event of termination, the courts will hold the parties to their contractual bargain and enforce the process.
There is no public record of a mediation session (no court reporter is present) and discussions are confidential, unless otherwise provided for by law, regulation or rule. Mediation is not binding (except for any agreement reached by the parties) and a party may withdraw from mediation at any time.
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.
Arbitrator is given power to decide. Final and binding decision. Mediator has no power to decide. Settlement only with party approval.
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 a confidential mediation statement, it is helpful to include factual and legal weaknesses to allow the mediator to begin developing a strategy to help both sides compromise. If key documents or deposition testimony are important, this is a good place to summarize them.
