Mediation

Question

I recently went through mediation and part of the terms were that I had to resign. It’s getting close to the deadline of when they had to pay and I’m getting nervous because I haven’t received the check yet. I’m located in CA. Is it easy to collect payment if they breach the contract?

Neil Pedersen · Answer

The answer to your question depends on a great deal of fact and circumstances that are not available from your post.  Most mediated settlements end up with a voluntary payment of the settlement amount, but some end up with issues regarding payment.  Do not expect payment until the last day required.  Defendants rarely like to pay early. 
 
As to how easy it is to collect depends entirely on the nature and size of the defendant.  Collection efforts may involve filing a whole new lawsuit for breach of contract, or if the parties had certain language in the settlement agreement, a motion filed with the court and a hearing thereafter.  It is just impossible to tell you without knowing the parties and dynamics in place. 
 
Good luck to you.

Steve A. Buchwalter · Answer

An early payment on a settlement is extremely rare.   If they're going to pay, it will be anytime from 1 day early to 1 day late (as they may interpret the deadline as a mailing deadline).  By the sound of your email, it's too early to sweat.

James L. Arrasmith · Answer

If the other party breaches the mediation agreement by failing to make the payment as agreed upon, you have a few options to enforce the contract and collect the payment in California: 
 
1. Send a demand letter: Write a formal letter stating that the other party has breached the agreement and demand that they make the payment by a specific date. This letter serves as a final reminder before taking legal action. 
 
2. File a lawsuit: If the other party does not respond to the demand letter, you can file a lawsuit in court to enforce the mediation agreement. In California, you would typically file the suit in the Superior Court of the county where the defendant resides or where the agreement was signed. 
 
3. Request a judgment: Once you file the lawsuit, you can request a judgment from the court. If the court finds that the other party has indeed breached the contract, it will issue a judgment in your favor, ordering them to pay the amount owed. 
 
4. Enforce the judgment: If the other party still does not pay after the judgment, you can take further steps to enforce it, such as wage garnishment, placing a lien on their property, or involving a collection agency. 
 
While the process of collecting payment through legal means is relatively straightforward, it can be time-consuming and may require additional costs, such as court fees and attorney's fees. However, having a written mediation agreement signed by both parties can make it easier to prove the breach of contract in court. 
 
Before pursuing legal action, it's advisable to consult with an attorney who specializes in contract law or employment law to assess your case and guide you through the process.

Tim Akpinar · Answer

It looks like you haven't reached the deadline yet. One option is to wait and see what happens when the mediator's set date is reached. As my colleagues correctly state, many entities do not like to pay earlier than necessary. However, in your favor, many entities also do not like to violate the orders of an arbitrator or a mediator. You may be appearing before them once, but many commercial entities appear before the same arbitrators or mediators on a regular basis. Good luck

Q: Mediation