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Sacrificing Settlement Agreements in the Name of Mediation Confidentiality

Bettenhausen, Laura J.. Journal of Dispute Resolution, Jan. 1, 2007

In Fair v. Bakhtiari, the California Supreme Court found that an arbitration clause in a mediation settlement did not amount to an agreement to be bound by the terms of the settlement. The California Evidence Code states that, in order for a mediated settlement to be admissible in court, it must include a provision stating that it is "enforceable or binding or words to that effect" (p 576). Here, the court found, the agreement did not meet that requirement and would therefore remain confidential and inadmissible. The author argues that, in its narrow interpretation of the statute, the court "rendered the 'words to that effect' clause meaningless" (p 576), and cautions mediation participants to use more precise language in settlements they intend to be enforceable.

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