Individuals, businesses, and other entities can use this mediation agreement template to specify the details of a dispute and the mediation of that dispute. It’s an important document to ensure both parties understand the process and abide by its conclusion.
Agreement to Mediate between:
This Mediation Agreement ("Agreement") is entered into on (Date), by and between
[PartyA.FirstName] [PartyA.LastName] (“Party A”)
[PartyB.FirstName] [PartyB.LastName] (“Party B”)
(Collectively referred to as “Parties”)
Parties agree to attempt, in good faith, to settle the Dispute referred to in Schedule A by mediation. Parties and the Mediator will conduct the mediation following the terms outlined in this mediation agreement (“Agreement”).
Mediation shall take place in (Location), (State), United States of America, and shall be conducted following the federal, state, and local laws of (State).
This section is essential to ensure that neither Party can get out of the Agreement by having someone ineligible sign the Agreement.
The individual signing this Agreement on behalf of each Party warrants that they are the legal proxy of the Party, authorized to bind that Party, and all other persons present on behalf of the Party. The representative agrees to observe the terms of this Agreement and to bind the Party they are signing for to the terms of the settlement.
This critical section clearly defines how to choose a mediator within a set period. This process keeps the other Party from dragging out the selection process and helps the mediation progress as smoothly as possible.
The Parties shall agree upon and contact a Mediator within five (5) business days of the Dispute. Should the Mediator be unable or unwilling to accept the invitation to act as Mediator, the Parties shall have another five (5) business days to agree and invite another Mediator.
If, after five (5) business days pass and the Parties disagree on a Mediator, then any Party may approach the American Arbitration Association to submit a list of potential Mediators to each Party. The Parties will then have five (5) business days to agree on a Mediator. Should they not agree on a Mediator, the American Arbitration Association will appoint a suitable Mediator.
A Mediator shall endeavor to assist the Parties in settling the Dispute by reaching a consensus. To achieve this consensus, the Mediator will meet both Parties jointly and individually to develop an understanding of the Dispute, the view of each Party, and to facilitate a mutual understanding and Agreement between the Parties.
A Mediator is an impartial facilitator and will neutrally conduct themselves during the mediation. A Mediator will not give legal advice, make any findings, or give recommendations. However, the Mediator has the discretion to conduct the mediating process of the Dispute in such a manner as they determine within the terms of this Agreement.
A Mediator will conduct the process without prejudice and is responsible for its administration, including its process and conduction, which they will do expeditiously and cost-effectively.
You should clearly define what’s expected of both Parties, as it helps ensure the other Party doesn’t neglect any duties. In this way, you can prevent sabotage or unwillingness to work together in good faith to set back the process.
Each Party will cooperate in good faith with the Mediator and the mediation process. Prior to and during the scheduled mediation session(s), the Parties shall endeavor to the best of their ability to prepare for and engage in a meaningful and productive mediation.
Since you’re bringing a third party into your business’s affairs, this confidentiality section doesn’t just apply to the person or company you have a dispute with. It also applies to your Mediator and ensures someone who disagrees with you can’t spread information about it.
All verbal and written information produced or received during the process of mediation is confidential. Parties can only use the data for this mediation. Neither Party can repeat or refer to in a court action, disciplinary, formal investigation, grievance, or any other proceeding, except where disclosable by federal, state, and local law.
Both Parties agree to not call on the Mediator to give evidence in any formal investigation or any other proceeding mentioned above and not to ask to see the notes of the Mediator.
This section outlines how to handle the settlement. It’s a good idea to add that the Parties use a Settlement Agreement, as this will ensure a written copy of the consensus both Parties reached, with the Mediator as facilitator and witness.
If the Parties settle the Dispute or any part thereof in a Settlement Agreement, then that Settlement Agreement shall be the final and binding settlement of the Dispute or part thereof. Both Parties must sign the Settlement Agreement and have the right to a copy thereof as a record.
In the event that the Parties do not settle during this mediation of the Dispute, then the rights of the Party shall not be prejudiced and can be referred to elsewhere.