Attorney
Injured parties file thousands of personal injury cases every year, but only about 4% ever make it to court. People settle most of the other 96% through some other means, such as mediation. Is mediation legally binding in personal injury cases?
What Does Mediation Mean in a Personal Injury Case?
Mediation is a form of alternative dispute resolution that facilitates settling a personal injury case without going to court. Sometimes, the Court in which a personal case is filed in will assign a mediator to work with the parties. Alternatively, the involved parties can choose a neutral third party to be the mediator.
The mediator helps the two parties communicate, provides guidance during negotiations, and makes suggestions for a resolution. However, the process is voluntary, and neither party has to take the mediator’s suggestions.
What Are the Benefits of Mediation?
Personal injury mediation has several benefits compared to a personal injury lawsuit. It is less formal, less risky, and usually less expensive than going to trial.
Everything you say during mediation is confidential and mediation usually takes less time than going to court. You can craft the resolution you want, rather than leaving it in the hands of the judge or jury.
Does Mediation Involve a Legally Binding Decision?
Typically, mediation is not legally binding unless you and the other party sign an agreement to resolve the dispute. Once you sign an agreement, it is a legally binding contract.
If either or both parties decline to sign an agreement, then nothing you discussed during the mediation is legally binding. Additionally, the suggestions of the mediator are also not binding on either party.
You can continue to negotiate a settlement or proceed to a personal injury trial, but neither party can use anything said in mediation to compel the other to settle. Additionally, both parties must keep what they discussed during mediation confidential.
Does Mediation Lead to a Settlement?
Mediation can lead to a settlement, but agreeing to mediation does not mean either party must agree to a settlement. If you do settle, your attorney will draft a mediation agreement that details the agreed-upon resolution.
What Happens If Someone Violates a Mediation Agreement?
If the other party violates the terms of your mediation agreement, you may refile your personal injury case or file a claim for breach of contract. However, there are some circumstances where a mediation agreement may not be enforceable.
Mental Incapacitation
A person who is mentally incapacitated can’t enter into a legally binding contract. If the court finds the other party was mentally incapacitated when they agreed to the settlement, your mediation agreement may not be enforceable.
Undue Influence or Duress
If the party who violated the agreement can prove someone deceived or tricked them into signing the agreement, the court may not enforce it. If the person signed the agreement because someone threatened them, it is also not enforceable.
Fraudulent Misrepresentation
If the violating party can prove that the other party misrepresented material facts during mediation, the court may not enforce the agreement. A personal injury lawyer can help you avoid mistakes that could invalidate your mediation agreement.
Where Can You Get Help With Mediation in a Personal Injury Case?
Are you wondering if mediation is legally binding in personal injury cases? You’re not alone.
If you need help with mediation in a personal injury case in the Washington, D.C., Virginia, or Maryland area, contact Koonz, McKenney, Johnson & DePaolis, LLP for a free consultation. We only charge a fee if you receive compensation.