Even when parties seem firmly set in their positions, a qualified mediator can often find a way to help them reach consensus. In many cases existing or potential litigants decide on their own to seek a resolution through mediation. There are also instances in which a court orders the parties to work with a mediator in hopes of averting a trial. 

California recently updated its rules concerning mandatory mediation in civil matters. One key change made pursuant to Assembly Bill 1523 is that parties can be ordered to mediate their differences if the amount in controversy is $75,000 or less. Previously, the monetary threshold was $50,000. This means that more civil cases will be subject to mandatory mediation directives. When determining the amount in controversy, the court just considers the amount of the plaintiff’s claim, without considering the merits of the case.

A court may order mediation only when the case is set for trial, at least one party has expressed interest in mediation and there are no ongoing discovery disputes. When possible, the parties can choose the mediator themselves. If they can cannot agree on a particular person after 15 days, the court steps in and makes an appointment. 

Should mediation fail, the litigants must have enough time to prepare for trial. Accordingly, the law states that mediation has to be concluded no less than 120 days prior to the trial date. However, if all parties agree, the sessions can be held remotely. The mediation must end either with a mutually acceptable settlement agreement or a written statement of non-agreement. 

AB 1523 encourages earlier, focused efforts to resolve disputes while protecting the parties’ procedural rights. Because a court may only order mediation once a trial date is set, timing becomes crucial. Parties who want the court to compel mediation should make that interest known promptly. 

The 15-day window to agree on a mediator means counsel should be prepared with mediator options and contingency plans. If the court appoints a mediator at no cost, parties may not be able to choose a mediator with a particular expertise—so proactively agreeing on a mediator is often preferable. If your case is near the $75,000 threshold or heading for trial, consider whether mediation makes strategic sense and act early to identify a mediator who has the knowledge and skills to maximize the likelihood of settlement. 

Quinn & Kronlund LLP in Stockton has extensive experience successfully mediating various types of California disputes. To discuss your particular matter, please contact us online or call 209-943-3950.