Question 1

Is mediation legally binding?

Accepted Answer

The mediation process isn't binding — you can walk away at any time. But if you reach an agreement, that settlement agreement is a binding contract. Once both parties sign the mediated settlement, it's enforceable just like any other contract. If one side backs out, the other can sue to enforce it.

Question 2

How much does mediation cost?

Accepted Answer

Mediator fees range from $1,000–$5,000 per day, depending on the mediator's experience and the complexity of the dispute. Some community mediation centers offer free or low-cost services for smaller claims. The costs are typically split between the parties. Compare that to litigation ($30,000+ for a simple contract dispute) and it's a bargain.

Question 3

Can anything said in mediation be used in court later?

Accepted Answer

No — mediation is confidential. Statements made during mediation can't be used as evidence if the case later goes to court or arbitration. This confidentiality encourages honesty. Both sides can speak freely without worrying that their words will be weaponized later.

Question 4

When should I try mediation before going to court?

Accepted Answer

Almost always. It's cheaper, faster, and preserves the business relationship. It's especially valuable when you want to keep working with the other party after the dispute is resolved. The only cases where mediation might not make sense: when one side refuses to negotiate in good faith, or when you need an emergency court order to prevent irreparable harm.

Question 5

What's the difference between mediation and arbitration?

Accepted Answer

Mediation is collaborative — the mediator helps you find a solution, but can't impose one. Arbitration is adversarial — the arbitrator hears arguments and makes a binding decision. Think of mediation as assisted negotiation and arbitration as private court. Most dispute resolution clauses put mediation first because it's cheaper and preserves relationships.

Mediation

Definition

In Practice

Common in these contract types

Related terms

Frequently asked questions about mediation

Create a contract with proper mediation clauses