Mediation
A non-binding, confidential dispute-resolution process in which a neutral third party facilitates negotiation between the parties to reach a voluntary settlement. The mediator does not decide the dispute, only the parties can resolve it. Texas courts routinely order mediation before trial.
Mediation is a non-binding, confidential dispute-resolution process in which a neutral third party (the "mediator") facilitates negotiation between the parties to reach a voluntary settlement. The mediator does not decide the dispute, only the parties can resolve it. Texas courts routinely order mediation before trial in commercial cases.
Court-ordered mediation
Texas trial courts have broad authority to order parties to mediation under Ch. 154. Refusal to attend a court-ordered mediation may result in sanctions. The court cannot, however, force parties to settle, only to participate in good faith.
Confidentiality
Communications during mediation are confidential and inadmissible in subsequent proceedings, with limited exceptions (criminal admissions, threats of violence, abuse). § 154.073. The settlement agreement reached in mediation, however, becomes an enforceable contract once executed.
Mediator selection
Parties may agree on a mediator or have one appointed by the court. Many commercial mediators in Texas are former judges or experienced trial lawyers. Mediator fees are typically split equally between the parties unless otherwise agreed.
Mediation resolves the substantial majority of cases that go through the process, Texas data suggests settlement rates above 70% for properly-prepared commercial mediations. The principal value is the confidential, low-stakes setting that allows parties to discuss settlement options without fear of disclosure in litigation.
Companion article: Contract Disputes in Texas
Practice guide: How Long a Business Lawsuit Takes in Texas