Mandatory mediation clauses require parties in a dispute to engage in mediation before pursuing litigation or arbitration, aiming to facilitate a mutually agreeable resolution. These clauses emphasize resolving conflicts through dialogue, potentially saving time and costs associated with court proceedings.
Sections 19.8 and 19.9 of the Company Operating Agreement require many disputes to be settled through mandatory mediation or arbitration, respectively. Although neither provision applies to claims under U.S. federal securities laws, these provisions may (1) increase the costs for an investor to bring a claim, (2) limit access to information relative to litigation, (3) discourage the bringing of claims, and (4) limit investors’ ability to bring a claim in a judicial forum that they find favorable.”
Mandatory Mediation and Waiver of Jury Trial. The Company and Executive agree that all disputes and claims of any nature that one party may have against the other party will be submitted exclusively first to mandatory mediation in Chicago, Illinois, or at another mutually agreed upon location, to JAMS dispute resolution services, or to such other individual or organization as the parties mutually may agree. All information regarding the dispute or claim or mediation proceedings, including any mediation settlement, shall not be disclosed by Executive, the Company, or any mediator to any third party without the written consent of the Company’s President and Chief Executive Officer and Executive. In the event that mediation does not resolve any dispute that the Company or Executive has with the other party and the Company or Executive proceeds to file a complaint in court, THE COMPANY AND EXECUTIVE HEREBY WAIVE ANY RIGHT TO A JURY TRIAL OF THAT DISPUTE.
Mandatory Mediation. If a Dispute cannot be settled by good faith negotiation between the parties, the parties shall, upon written request from either party, promptly submit the Dispute to nonbinding mediation before a mutually agreeable mediator in Houston, Texas. If complete resolution of the Dispute cannot be reached within thirty (30) calendar days’ of submission to, and good-faith participation in, mediation, any remaining issues will be resolved by mandatory arbitration as set forth below. Each party shall bear its own attorneys’ fees and expenses associated with the mediation. The parties and their representatives shall hold the existence, content, and result of the mediation in strict confidence.
.Mandatory Mediation. If parties are unable to resolve the dispute as described above, either party may file a mediation demand with JAMS of Northern California, with the mediation to take place in Santa Clara County, California. The parties will work in good faith to select a mediator who is knowledgeable and experienced in the subject matter of this Letter of Engagement. All negotiations connected with the Dispute, including negotiations with a mediator, shall be conducted in confidence and without prejudice to the rights of the parties in any future legal proceedings. Neither party may file a lawsuit until the completion of the mediation described in this section.
By signing below, you agree that all disputes and claims of any nature that you may have against the Company or any other member of the Group including, without limitation, all statutory, contractual, and common law claims and claims pursuant to this letter, will be submitted solely and exclusively first to mandatory mediation and, if mediation is unsuccessful, then to binding arbitration in accordance with the then-current arbitration rules and procedures of the Judicial Arbitration Mediation Services (JAMS) to be held in the closest JAMS office to Stamford, Connecticut (or such other location as mutually agreed to by the parties).
Mandatory Mediation and Arbitration.
(i) Notwithstanding any other provision of this Agreement, all disputes, claims, or controversies arising out of or relating to this Agreement, or the negotiation, validity or performance hereof, that are not resolved by mutual agreement of the Parties first shall be submitted to a mandatory, non-binding mediation proceeding (“Mandatory Mediation”) held in Boston, Massachusetts, which Mandatory Mediation shall be conducted before a single mediator selected by Purchaser. The Parties covenant and agree that they will submit to and participate in such Mandatory Mediation in good faith prior to instituting arbitration pursuant to Section 12.11(f)(ii) with respect to any indemnification claim or other legal proceeding against any other Party. Unless otherwise agreed to by the Parties, all costs of the Mandatory Mediation shall be shared equally by the Sellers, on the one hand, and Purchaser, on the other.
MANDATORY MEDIATION AND BINDING ARBITRATION. The parties may submit any dispute or controversy arising under this Agreement (each, a “Dispute”) to confidential mediation for a good faith resolution. The mediation must be administered by [the American Arbitration Association under its Commercial Mediation Rules / the International Institute for Conflict Prevention and Resolution under its CPR Mediation Procedure / JAMS under its Comprehensive Arbitration Rules] and shall take place in the location of a city nearest to the Premises, or if not available, then Raleigh, North Carolina. The version of the rules that should apply are those currently then in effect at the time of the Dispute. If the aforementioned mediation service is no longer available for any reason at the time of the Dispute, the parties shall mutually agree upon an alternative, comparable service (yet must first use the named service’s successor, if one exists). The mediation shall commence upon the Parties’ provision of a joint, written request for mediation to the mediation service. Such request shall include a sufficient description of the Dispute and relief requested. Each party shall cooperate with the mediation service in all reasonable respects and participate in good faith wherever required. Mediation fees and expenses shall be borne equally by the Parties. All communications (whether oral or written) are confidential and will be treated by the parties as compromise and settlement negotiations for the purposes of the Federal Rules of Evidence as well as any applicable, corresponding state rules. Notwithstanding the foregoing, evidence that is otherwise admissible or discoverable shall not be rendered inadmissible or non-discoverable as a result of its use in the mediation. Either Party may seek equitable relief (such as an injunction) prior to or during the mediation in order to preserve the status quo and protect its interests during the process. If, after the earlier of (1) sixty (60) days following the commencement of a mediation hereunder or (2) completion of the initial mediation session, the Parties still have not come to a resolution for any reason (including a failure to actually mediate), they shall seek to resolve the Dispute by binding arbitration or litigation (as more fully set forth in this Agreement). Until such time, neither binding arbitration nor litigation may be pursued by the parties.
Mandatory mediation is a dispute resolution process that requires parties involved in a disagreement to participate in mediation sessions before pursuing further legal action or litigation. In this context, mediation is facilitated by a neutral third party, the mediator, who assists the parties in negotiating a mutually acceptable resolution. The process aims to encourage communication, reduce court congestion, and achieve faster settlements.
When Should I Use Mandatory Mediation?
Mandatory mediation is typically used in situations where:
Legal frameworks require it: Some jurisdictions have statutory requirements mandating mediation in certain types of cases, such as family law disputes or small claims.
Contracts include mediation clauses: Parties have agreed in advance (via a contract) that any disputes will first be addressed through mediation.
Efficient conflict resolution is desired: It can be useful when parties seek a quicker, less formal conflict resolution method than court proceedings.
How Do I Write a Mandatory Mediation Clause?
When drafting a mandatory mediation clause, ensure clarity by including:
Scope and applicability: Clearly define which disputes will be subject to mediation.
Selection of the mediator: Outline the process for selecting a qualified mediator, including any necessary qualifications.
Mediation procedure: Describe the basic procedural steps, timelines, and any rules governing the mediation process.
Cost-sharing arrangements: Specify how costs related to mediation will be divided among the parties.
Example Clause
In the event of a dispute relating to or arising from this agreement, the parties agree to participate in at least one session of mediation in accordance with the rules of [Name of Mediation Institution]. The mediation shall take place within [specified time] of a written request for mediation by either party. The costs of mediation shall be borne equally by the parties.
Which Contracts Typically Contain Mandatory Mediation Clauses?
Mandatory mediation clauses are commonly found in:
Commercial Contracts: Business agreements, service contracts, or joint ventures often include such clauses to protect business relationships and avoid litigation costs.
Employment Agreements: These may include mandatory mediation to resolve workplace disputes, such as harassment or discrimination claims.
Real Estate Contracts: Disputes over property transactions, landlord-tenant disagreements, or construction contracts may utilize mediation clauses.
Family Law Agreements: Prenuptial agreements, divorce settlements, and child custody arrangements often require mediation before court proceedings.
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