Enforceability Of Settlement Agreements
Mediation is an alternative dispute resolution method that allows parties to find a mutually agreeable solution to their disputes. A mediator does not make a decision at the end of the mediation process. Their primary responsibility is to assist parties in reaching a compromise or a common ground. At the end of the process, the parties can either sign a Statement of Agreement or a Statement of Nonagreement, depending on the mediation’s outcome.
The document drafted based on the parties’ mutual understanding specifies the nature of the agreement, with the terms clearly outlined. A Statement of Agreement is enforceable in the same way as a court ruling. The goal is to ensure that the parties fulfill their obligations within the specified time frames. If the parties fulfill their obligations, the Statement of Agreement is deemed to have served its purpose; otherwise, it must be enforced with a court order.
To that end, an enforceability annotation must be obtained from either the mediator’s associated Court of Peace (if mediation has been initiated prior to court proceeding) or the court of trial (if mediation has begun during court hearings). After receiving an enforceability annotation, the statement of agreement will act as a verdict and be subject to an enforcement proceeding with judgement.
Enforceability is determined by two criteria:
- The content of the Statement of Agreement must lend itself to compulsory enforcement, and
- The subject of the settlement must be suitable for mediation.
The fulfillment of both criteria is necessary to obtain enforceability annotations.