What happens if an agreement is not reached at a mediation hearing?
At a mediation hearing, both parties try to reach an agreement that all parties involved are satisfied with. If, however, the parties are unable to reach an agreement, then they are not bound to the outcome. In California, if an agreement is not reached at a mediation hearing, then the parties must continue with their dispute and proceed with other methods of dispute resolution, such as arbitration or litigation. Mediation does not replace, or prevent, the parties from pursuing alternative methods of dispute resolution. In fact, in California, if the parties are unable to reach an agreement at a mediation hearing, the court may order a trial to decide the dispute. This means that parties must still litigate their case in court and have a judge or jury make a decision on the dispute. The court will consider the mediator’s recommendations, but those recommendations are not binding. In addition, even if an agreement is not reached, the process of mediation may help the parties to identify areas of common ground and to narrow the issues that need to be litigated. This can often result in a more efficient dispute resolution process and can help the parties to save time and money by allowing them to focus on the points of disagreement that are most important to them.
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