California Mediation Clauses
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How to fill out Mediation Clauses?
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FAQ
Voluntary participation and self-determination are fundamental principles of mediation that apply both to mediations in which the parties voluntarily elect to mediate and to those in which the parties are required to go to mediation in a mandatory court mediation program or by court order.
Arbitration is a form of dispute resolution in which the parties to a contract agree to have their dispute resolved by a third-party decision-maker, rather than through litigation, and agree that this third party's ruling will be binding on them.
In a med-arb process, parties first reach agreement on the terms of the process itself. Typically?and unlike in most mediations?they must agree in writing that the outcome of the process will be binding. Next, they attempt to negotiate a resolution to their dispute with the help of a mediator.
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.
Arbitrator is given power to decide. Final and binding decision. Mediator has no power to decide. Settlement only with party approval.
Mediation is first and foremost a non-binding procedure. This means that, even though parties have agreed to submit a dispute to mediation, they are not obliged to continue with the mediation process after the first meeting. In this sense, the parties remain always in control of a mediation.
Mediation is generally voluntary, confidential and unbiased. Where a voluntary settlement is achieved, it only becomes binding when the parties sign a formal settlement agreement. Parties in mediation may still seek independent legal advice (in legal cases the parties are encouraged to do so).
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.
