Mediation

Chapter 154 defines mediation as a forum in which an impartial person, the mediator, facilitates communication between the parties to promote reconciliation, settlement or understanding (§ 154.023(a)). The mediator may not impose his own judgment on the issues for that of the parties (§ 154.023(b)).

Court-ordered mediation

A Texas trial court may refer a pending dispute to mediation on its own motion or a party's, but any party may file a written objection within 10 days after notice, and a reasonable basis for the objection bars the referral (§§ 154.021, 154.022). Absent the parties' agreement, a court may not order mediation in an action subject to the Federal Arbitration Act (§ 154.021(c)). The mediator encourages and assists settlement but may not compel or coerce the parties to settle (§ 154.053(a)).

Confidentiality

Communications during mediation are confidential and inadmissible in subsequent proceedings, subject to the exceptions in § 154.073: material that is admissible or discoverable independent of the mediation, final agreements signed by a governmental body, conflicts with other disclosure laws, and reporting duties for abuse, neglect and exploitation. The settlement agreement reached in mediation, however, becomes an enforceable contract once executed.

Mediator selection

Parties may agree on a mediator or have one appointed by the court. A court-appointed mediator generally must have completed at least 40 classroom hours of court-approved dispute-resolution training (§ 154.052(a)). For a court-appointed mediator, the court may set a reasonable fee and, unless the parties agree on payment, taxes it as costs of suit (§ 154.054).

Companion article: Contract Disputes in Texas

Practice guide: How Long a Business Lawsuit Takes in Texas