What is Mediation?

Mediation is a dispute settlement process in which a neutral third party assists disputing parties in resolving their dispute through persuasion, logic, option generation, and improved communication.

What are the Benefits of Mediation?

The benefits of mediation include:

• Confidentiality
• Results in an Agreement vs. a Decision
• Agreements can be tailored to the specific dispute
• Conducive to long term relationships
• Allows parties to tell their story and vent
• Helps parties to evaluate their case

Are there any Disadvantages?

The only real disadvantage is that there is no guarantee that the parties will resolve their dispute.

How is it Different from Arbitration?

It is less formal, less structured, usually less expensive, and the result is an agreement that the parties voluntarily agree to versus a decision imposed by an arbitrator.

What Happens If We Can't Agree in Mediation?

In the event that you can't agree, the parties may pursue other remedies including arbitration. Frequently, parties who have not reached an agreement in mediation will find themselves settling before an arbitration hearing or a court date because they have reflected on some of the things discussed during the mediation.

What Happens If We Agree in Mediation?

About 75% of all cases submitted to mediation are resolved. Once parties agree, the mediator will assist the parties in drafting an agreement for their review and approval. All parties leave the mediation with a signed copy.

Is a Mediation Agreement Binding?

A mediation agreement that is properly drafted is enforceable through the court system. However, a very small percentage of participants have to seek enforcement of their awards because parties that participate in the resolution of their dispute are more likely to comply with the terms of the agreement.

Do I Need an Attorney?

No. There is generally no restriction on using an attorney, and some parties do decide to retain counsel, especially for higher value claims. Since mediation is a negotiation process, and does not generally involve the preparation and presentation of evidence, briefs, and other materials, many parties decide to handle the mediation on their own.

Do I Waive any Rights by Agreeing to Mediation?

No. In the event that the parties fail to come to an agreement in mediation, they are free to explore other remedies, including continuing the mediation process at a later date.

Isn't Agreeing to Mediate an Admission of Liability?

Absolutely not. Agreeing to mediate simply indicates a willingness to discuss the issues and explore possible options for resolution. It may signal that:

• the relationship is important
• there is an awareness that going to court may not resolve the real problem
• there is a desire to avoid blame and attempt to solve the problem

Who Are the Mediators?

The Mediators are individuals who have been trained in the mediation process, and may be professionally employed as teachers, lawyers, engineers, etc. They are either selected by the parties themselves, or appointed by a neutral administrative agency, such as NCDS. They are individuals who have no stake in the outcome of the process.

What are the Basic Stages of a Mediation Process?

The mediation process usually includes the following components:

• Opening Statements by the Mediator and parties
• Joint dialogue by parties to identify the issue and their interests
• Separate sessions with each party and the Mediator
• Joint session to draft agreement or discuss next steps

Who Pays for Mediation and What Does It Costs?

Usually, the parties split the costs equally. Some agreements and arrangements stipulate that only one party pays. Costs of the process may vary depending on the:

• Type of claim
• Size of the claim
• Agreement or contract that references mediation

Additional Information

Home Builder Association of Greater Dallas offers Mediation Program to its Builder Members