When dealing with personal injuries, many people believe their only options are to file insurance claims or lawsuits to get fair compensation. While these may be options, there are alternative dispute resolution options available, like mediation. Unlike the results of a trial, mediation is not necessarily legally binding.
The mediation process is not legally binding. However, if you reach a settlement agreement through mediation, the settlement is legally binding, but only if both parties agree. Even when mediation is required, such as in cases involving contracts or waivers, it is not legally binding. Judges can even refer cases to mediation, but the process is not legally binding unless both parties agree to the results. Once you accept a settlement through mediation and it becomes legally binding, it is very difficult to go back and challenge it.
For a free case review from our NY personal injury attorneys, call The Carrion Law Firm at (718) 841-0083.
Is Mediation Legally Binding?
Generally, the mediation process is not legally binding. Mediation is not a formal trial or hearing, and there are no legally binding findings of liability. Instead, a neutral mediator guides the plaintiff and defendant to a mutually agreeable resolution. If no resolution can be reached, there is nothing to bind the parties legally.
However, a settlement signed as a result of mediation is legally binding. Settlements, whether reached through mediation or private negotiations, become legally binding when they are signed and made official by the courts. While it is possible to challenge a settlement agreement later, it is difficult and only possible under rare conditions like physical coercion.
Mediation does not have to end with a settlement. If no settlement is reached, the parties may pursue other legal options, including personal injury lawsuits.
Is Mediation Legally Binding if it is Required in NY?
In some cases, mediation is not optional. You might have to participate in mediation because of the terms in a waiver or contract you signed before becoming injured. In other cases, judges may ask the parties to try mediation to settle their dispute or certain aspects of their case. Even so, mediation is still not legally binding.
Mediation can help people avoid an expensive legal battle in court, which is why it is often included in waivers. Potentially liable parties would often much rather mediate a private settlement than take matters to court. Even so, you do not have to agree to a settlement, even if you must participate in mediation. However, you should not totally dismiss the idea of mediation. Our NY personal injury attorneys may be able to help you mediate a favorable settlement without having to endure a frustrating lawsuit.
What if a Judge Refers My Case to Mediation in NY?
Mediation is still not legally binding, even if a judge directs you to use a mediator to settle a dispute.
This is not unusual, as judges and courts often direct people to mediation to resolve their disputes. This helps keep the courts’ schedule from jamming and helps plaintiffs and defendants settle their disagreements.
A judge can issue an Order of Reference to send your case to a mediator. This might be because the judge believes a settlement may be reached without a full trial or because specific disputed elements of the case must be settled before a trial can proceed.
For example, suppose the parties cannot agree on the value of the plaintiff’s damages before a trial. In that case, the judge may order them to participate in mediation to reach an agreement about the value of the damages.
Can I Challenge a Legally Binding Mediation Settlement?
A settlement reached through mediation is legally binding once both parties sign it. Even so, it might be possible to challenge the settlement agreement under very special circumstances.
You may not challenge a settlement agreement simply because you have second thoughts. Instead, you may have to show the settlement was reached under fraudulent or unlawful means.
For example, if the other party misled you about certain material facts to get you to agree to the settlement, you may challenge it. However, we must be prepared to present evidence of the fraud. You may also challenge a settlement if you were coerced into accepting it. If the defendant threatened or intimidated you into a settlement, whether explicitly or implicitly, you can challenge the settlement.
Can I Still Sue After Mediation in NY?
If you do not come to a settlement agreement through mediation, you may be able to pursue other legal options, including a personal injury lawsuit. Again, the mediation process is not legally binding. If you did not sign a settlement agreement after mediation, you may still be able to sue.
If you are interested in suing after going through mediation, you must be mindful of the statute of limitations. According to C.V.P. Law § 214, personal injury plaintiffs have 3 years from the day of their accident to file a lawsuit. Mediation might eat into this time, and you might need to move fast to file a lawsuit on time.
If mediation is successful with some parties but others have not settled, you can still typically sue them for their share of the damages. Settlements only apply to the parties that signed the settlement, unless it says otherwise.
Is Mediation Better than a Personal Injury Lawsuit?
Whether mediation is better for you than a lawsuit depends on what you want. Before engaging in mediation, talk to an attorney about your situation. They may help you make an informed decision about which path to choose.
If you only want compensation for your damages, mediation may be quite helpful. Mediation is often faster and less expensive than a full trial. If the defendant is open to a favorable settlement, mediation may be the way to go.
Some people are less interested in actual compensation and more interested in a sense of justice and closure. In that case, you might want to take your claims to court. While trials are often more time-consuming and challenging to handle, you may get your day in court and the justice you need to find closure.
Speak to Our NY Personal Injury lawyers About Mediation
For a free case review from our The Bronx personal injury attorneys, call The Carrion Law Firm at (718) 841-0083.