Is Mediation Legally Binding in Personal Injury Cases?

If you were injured by someone else’s negligence in Missouri, you may file a claim or lawsuit. During negotiations, alternative dispute resolution (ADR) may be discussed. ADR is usually a voluntary process that parties in a lawsuit can enter into to resolve their legal dispute without needing to go to trial. Trials can be expensive and time-consuming, and there’s never a guarantee that things will go your way. For this reason, most personal injury lawsuits end in a settlement, and alternative dispute resolutions like mediation are one path toward reaching that goal.

What Is Mediation in Personal Injury Cases?

Mediation is a form of negotiation in which a neutral mediator facilitates discussions between the parties. In traditional negotiations, the parties and their lawyers attempt to reach an agreement before a full trial becomes necessary. However, this doesn’t always work if the parties don’t see eye-to-eye, which is where a mediator comes in.

Mediators don’t make decisions about the case. Instead, they ask questions, maintain order, and promote finding a solution that both parties can agree on. These mediators are usually legal experts, such as lawyers who aren’t involved in the case.

If mediation fails to result in a settlement, the next step could be arbitration. During arbitration, a neutral arbitrator listens to the arguments of both parties and makes a decision on the case. In general, mediation is seen as a better option in most personal injury cases because it grants the parties the freedom to determine the outcome of their case themselves rather than having an arbitrator determine it for them.

Is Mediation Legally Binding in Missouri?

In Missouri, mediation is not a legally binding process by default. If you don’t like the outcome of your mediation and haven’t signed a written agreement that details the mediation results, you can generally ignore it and take your case to arbitration or trial. However, mediation can be a legally binding process if both parties agree to it.

Voluntary Process

The main reason for agreeing to a legally binding mediation agreement is that mediation is voluntary. In theory, both parties are there because they want to resolve their legal dispute without having to go through a costly and time-consuming trial. So, if they agree on settlement terms, they typically don’t want the other party to be able to back out of those terms after the fact.

For example, let’s say you were injured in a slip-and-fall case. You may enter mediated negotiations with the convenience store where you fell and come to an agreement in which the store will pay for your medical expenses and lost wages. Once you’ve agreed to these terms, you don’t want the convenience store owner to be able to change their mind and take their chances at trial.

Legally Binding Agreements

If you choose to make your mediation legally binding, it’s as simple as having both parties sign a written agreement. This signed document should outline the key terms of the agreement, which your lawyer can review.

If the other party attempts to go back on their word after signing a legally binding agreement, you and your lawyer can take them to court to have a judge enforce the agreed-upon settlement terms.

Court Approval Sometimes Necessary

In some cases, court approval may be required for a mediated settlement to be legally binding. This is typically the case when the plaintiff is a minor or an individual with a cognitive disability. The purpose of this court approval is to make sure that the vulnerable plaintiff hasn’t been taken advantage of.

Benefits of Mediation for Settling Personal Injury Cases

There are numerous benefits of relying on mediation to settle your personal injury case over going to trial. Some of the most significant benefits offered by mediation include:

• Less Expensive – Mediation can be less expensive than going through a trial, particularly for the defendant. However, this can benefit you as the plaintiff because it means the defendant is often incentivized to reach a settlement agreement rather than go through a costly litigation process. While plaintiff’s attorneys usually get paid a percentage of your awarded compensation, defendant’s attorneys typically charge hourly rates, which can add up.
• Less Time Consuming – Trials can last for months or even years. Injured parties often don’t want to wait that long to receive the compensation they need now. A mediated settlement can get you the money you need sooner.
• Less Stress – One of the biggest downsides to going to trial is that you can never be 100 percent sure you are going to win. And even if you do win, the jury may not award you as much compensation as you expected. A mediated settlement avoids this stress by encouraging the parties to come to an agreement.
• More Control – With a mediated settlement, you have more control over the compensation you receive. You aren’t leaving it up to an arbitrator or jury to decide.
• Confidentiality – The final major benefit of mediation is that it is confidential. Anything you say during mediation is confidential and can not be used as evidence in court. This means that even if you don’t reach a settlement agreement, going through mediation cannot harm your case.

How to Enforce a Mediated Settlement Agreement

Settlement agreements signed at the end of mediation carry the same legal weight as any other contract. If the other party doesn’t uphold their side of the agreement, you can file a motion with the court to have the judge enforce the terms of the settlement. Examples of the defendant not upholding their end of the agreement include:

• Not paying the compensation they owe you
• Only making partial payments
• Unreasonably delaying agreed-upon payments
• Attempting to add additional terms to the agreement in exchange for payment

Contact Our Missouri Personal Injury Lawyers

Did someone else’s negligent or intentional actions cause you harm? Contact Goldblatt + Singer at (314) 231-4100 for a free consultation with our skilled personal injury lawyers in St. Louis, Missouri. During your initial consultation, we’ll review your case, walk you through the legal process of a personal injury lawsuit, and answer any remaining questions you have.