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Are Mediation or Arbitration Legally Binding?

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Possibly, if the mediation results in a settlement, the settlement will be reduced to writing. When it’s signed by everyone, it becomes a contract. In that case, the mediation is legally binding. If however, the mediation doesn’t result in a settlement, then it is not, in no way, legally binding and the parties can walk away with no commitment. An arbitration is more like a judgment in a court of law, meaning a final decision which will be binding upon the parties.

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