Are there limits on the amount or types of compensation that can be awarded in mediation?

Yes, there are limits on the amount or types of compensation that can be awarded in mediation in New Jersey. Under New Jersey law, an arbitrator must award reasonable compensation to the mediator, which is based on the time and effort expended by the mediator. The arbitrator also has the authority to award attorney’s fees and costs, as well as the costs of any expert witnesses or professionals that were used during the mediation process. If the parties involved in a mediation agreement resolve the dispute through an arbitration agreement, any award made must be consistent with the terms of the arbitration agreement. In addition, the arbitrator cannot award punitive damages or any type of compensation that is not related to the particular dispute that was being discussed in the mediation process. New Jersey courts have also held that the arbitrator cannot create or modify the terms of a contract that was not discussed during the mediation process. Overall, although mediators can recommend compensation or propose terms of settlement, they cannot legally impose any type of compensation or settlement terms on the parties involved in the dispute. Moreover, the arbitration award must be based on the evidence presented during the mediation process and must be reasonable and consistent with the laws of New Jersey.

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Are there limits on the amount or types of compensation that can be awarded in mediation?

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