Are there limits on the amount or types of compensation that can be awarded in mediation?
Yes, there are limits on the amount and types of compensation that can be awarded in mediation in Arizona. According to Arizona’s Rules of Civil Procedure Rule 17, mediation is “a voluntary process in which a neutral third party helps the parties to a case or dispute reach an agreement.” The agreement is not a court order, and there is no legal obligation to the terms of the agreement, so the compensation can be whatever the parties agree upon. However, Arizona state law does place certain limits on the types of compensation that can be awarded in a mediated agreement. For example, the agreement cannot include compensation for punitive damages, or damages that are designed to punish the responsible party. Additionally, the agreement cannot award compensation for any type of illegal activities or behavior. Furthermore, the agreement cannot require payment of any type of interest on the award, although attorneys’ fees and the costs of having the agreement drafted, notarized, and filed with the court are allowed. Overall, there are limits on the amount and types of compensation that can be awarded in mediation in Arizona. It is important for parties to understand these limits in order to ensure that their mediated agreement is legally binding.
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