Are Mediation or Arbitration Legally Binding?
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.