Are agreements reached in mediation legally binding and enforceable?
A. It is common practice that once parties reach an agreement in principle for the mediator to document a memorandum of agreement, resolution, or understanding prior to adjournment of the session in which a meeting of the minds occurs. As a provisional document, a memorandum enumerates basic points of agreement and frequently includes instructions for draft of a final and legally binding settlement agreement to be executed, pending review by legal counsel for each party, at a future date set forth in the memorandum. Parties have the option of designating in the memorandum that in the event a more detailed settlement agreement is not ratified by a certain date, then the memorandum, itself, shall serve as their final and complete expression of settlement. Resolutions reached in mediation thus become legally binding settlement agreements enforceable at contract. Q. Can parties to a written contract submit their dispute to mediation without a specific provision in their agreement? A. Yes.
