What happens if an agreement is not reached during an alternative dispute resolution process?

If a resolution is not reached during an alternative dispute resolution process, either party can choose to reject the agreement. This means the parties return to traditional court proceedings in order to resolve the dispute. If an agreement is not reached during an alternative dispute resolution process, the court may be able to enforce the agreement if it finds that the parties had a good faith effort at resolving the dispute, or that a contract or statement of the resolution of the dispute was made in writing. In some cases, the court may even impose a court order or judgment on the parties for failure to comply with the agreement. In California, if an agreement is not reached through an alternative dispute resolution process, the parties can try to settle the dispute out of court or proceed to litigation. Litigation can be costly and time-consuming, which is why many parties who cannot settle in mediation or arbitration often later choose to settle out of court instead. In some cases, a court-appointed referee may be appointed to help the parties come to a resolution. No matter which resolution process is chosen, it is important to remember that alternative dispute resolution is not legally binding and if the parties do not reach an agreement, the dispute will return to traditional court proceedings in order to be resolved.

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