Are mediation or arbitration legally binding?Return to FAQ Videos
Usually in the state of Florida mediation occurs when a lawsuit has been filed. Mediation takes place a little bit down the road. If mediation is unsuccessful, a settlement agreement is not entered into and therefore it is not binding. However, if mediation is successful an agreement is entered into. Then that agreement becomes a contract and that contract is binding.
As to arbitration, arbitration is different. Arbitration and the binding nature of it depends upon the contract itself. If there is an arbitration clause in the contract itself then that arbitration clause should say whether or not arbitration is binding or non-binding.