Q: Is a signed mediation agreement reached during small claims court a legal binding contract?
The defendant owed the Plantiff for work done on a piece of property. She put the property up as collateral in mediation and said she would give it to the Plantiff if she defaulted. She made a payment towards the past due after signing and the mediation agreement was put into record for the settlement of the case. The judge allowed the agreement regardless of the value of the property as Defendant owned it outright and it was defendants idea to use it as collateral. Defendant defaulted judge awarded property to Plaintiff. Was the signed agreement a legal contract and can agreement reached in mediation be legal if collateral value is higher than small claims.
A: Yes, agreements made in the course of legal proceedings are generally binding (absent ordinary contract law defenses, such as fraud, duress, and others.) Good luck
Lawyers, want to be a Justia Connect Pro too? Learn more ›
- California
- (916) 704-3009
- View Profile
- Answered
A:
Under California law, a mediation agreement reached during small claims court is generally considered a legally binding contract. When both parties sign a mediation agreement, they are agreeing to its terms and conditions, and it becomes enforceable.
In your situation, where the defendant used their property as collateral in the mediation agreement and then defaulted, the judge's decision to award the property to the plaintiff is in line with the terms of the agreement. The enforceability of such an agreement is not typically affected by the value of the collateral, even if it exceeds the monetary limits of small claims court.
However, it's important to ensure that the mediation agreement was drafted clearly and covered all necessary legal aspects to be enforceable. It's advisable to review the agreement with legal counsel to confirm its validity and to understand the steps required for enforcement.
In summary, if the mediation agreement was properly executed and recorded, and both parties agreed to its terms, it is considered a binding legal contract, and its enforcement is supported by the court, especially in cases of default by one of the parties.
Justia Ask a Lawyer is a forum for consumers to get answers to basic legal questions. Any information sent through Justia Ask a Lawyer is not secure and is done so on a non-confidential basis only.
The use of this website to ask questions or receive answers does not create an attorney–client relationship between you and Justia, or between you and any attorney who receives your information or responds to your questions, nor is it intended to create such a relationship. Additionally, no responses on this forum constitute legal advice, which must be tailored to the specific circumstances of each case. You should not act upon information provided in Justia Ask a Lawyer without seeking professional counsel from an attorney admitted or authorized to practice in your jurisdiction. Justia assumes no responsibility to any person who relies on information contained on or received through this site and disclaims all liability in respect to such information.
Justia cannot guarantee that the information on this website (including any legal information provided by an attorney through this service) is accurate, complete, or up-to-date. While we intend to make every attempt to keep the information on this site current, the owners of and contributors to this site make no claims, promises or guarantees about the accuracy, completeness or adequacy of the information contained in or linked to from this site.
