Utah Supreme Court Opinion on Mediation

February 1, 2008
An interesting case out of the Utah Supreme Court today....

The case was a civil case which involved a man being injured and he filed suit against the company for negligence. The case went to mediation and in the mediation a settlement was discussed, the mediator prepared a Memo of Understanding (MOU).. but the man who was injured would not sign it because there was a term in the MOU he did not agree with. The opposing side did not believe an agreement had been reached and the injured man took them to court to try to enforce the oral agreement. The trail court judge ordered the parties in the mediation to disclose what had happened in the mediation and if an agreement had been made. The attorney who was representing the company refused to disclose this information. The trail court found that she had to disclose the information and she appealed this decision to the Supreme Court to decide if she had to disclose the content of the mediation.

The Utah Supreme Court: First, upheld the confidential nature of mediation and ruled that the attorney did not have to and could not be compelled to disclose information from the mediation session... which is great news for the mediation world.
They second ruled that an agreement made in mediation is not enforceable unless and until it is put in writing and all involve parties sign it. We have been struggling with this issue in Utah for years.... the binding nature of a mediated agreement and if it matters if the parties sign it or not... This opinion has now answered that question.

It was a good day for the mediation community in Utah in that the Supreme Court supported the confidential nature of the process and outlined when an agreement reached in mediation is binding.

In short they found "we expressly recognize the importance of maintaining confidentiality in the mediation process and hold that Utah law requires agreements reached in mediation to be reduced to a writing and signed by all the parties to the agreement in order for the agreement to be enforceable by a court."
The decision was written by the Chief Justice Christine Durham.

To read the complete opinion go to
http://www.utcourts.gov/opinions/supopin/Reese2020108.pdf