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California Supreme Court Makes Confidentiality of Mediation Proceedings Iron Clad

The California Supreme Court, in Simmons allows a court to sanction bad faith
v. Ghaderi (July 21, 2008), has hammered behavior. There is no confidentiality
in the last nail and has made statute making an exception for reporting
confidentiality of mediation proceedings bad faith conduct through the disclosure
iron clad. The court held that there can of mediation communications.
be NO implied waiver of mediation 4. Section 1115's placement within the
confidentiality. An oral settlement Evidence Code further supports the
agreement that is not in writing, signed conclusion that implied waiver does not
by the parties and where there is no apply to mediation confidentiality.
express waiver of mediation Unlike the privileges subject to implied
confidentiality, is not admissible and waiver that are found in division 8,
will not be upheld in court. Even if the entitled "Privileges," the Legislature
parties engage in bad faith behavior placed section 1115 et seq. in division
during a mediation that would warrant 9, entitled "Evidence Affected or
sanctions, there is no implied waiver of Excluded by Extrinsic Policies." This
the mediation confidentiality. By laying placement reflects that the Legislature
down clear rules, the Legislature considered the specific limitations
intended, as a matter of public policy, placed on the admissibility of evidence
to reduce litigation over the by the mediation confidentiality statutes
admissibility and disclosure of evidence and endorsed those limitations to
regarding settlements and communications encourage mediation as a matter of public
that occur during mediation. policy.
Dr. Ghaderi, in a wrongful death medical 5. Finally, the legislative history of
malpractice lawsuit was at the mediation the mediation confidentiality statutes as
with her insurance adjuster and the a whole reflects a desire that section
defense attorneys. She had given her 1115 et seq. be strictly followed in the
consent to settle, providing the interest of efficiency. By laying down
settlement amount was at or below clear rules, the Legislature intended to
$125,000. Plaintiff's accepted the reduce litigation over the admissibility
$125,000. However, defendant and the and disclosure of evidence regarding
claims adjuster, and defense attorneys settlements and communications that occur
refused to sign the settlement agreement during mediation. Allowing courts to
when Dr. Ghaderi walked out of the craft judicial exceptions to the
mediation and orally revoked her consent. statutory rules would run counter to that
Plaintiffs went to the trial court to intent.
enforce the "written agreement" that the The Supreme Court held that both the
mediator had drafted, and which was clear language of the mediation statutes
signed by the plaintiffs. The trial and the prior rulings support the
court and court of appeal awarded the preclusion of an implied waiver
settlement amount as a judgment. The exception. The Legislature chose to
Supreme Court overturned the decisions promote mediation by ensuring
and held that the mediation confidentiality rather than adopt a
confidentiality statutes made scheme to ensure good behavior in the
inadmissible all evidence of an oral mediation and litigation process.
contract between plaintiffs and defendant Tips to Secure an Enforceable settlement
during mediation. Specifically, no form agreement
of recordation of the oral agreement If you are a party or an advocate to a
existed which was signed by all parties. mediation proceeding, and orally agree to
The California Supreme court made the a settlement, REDUCE THE SETTLEMENT TO
following points: WRITING, SIGNED BY ALL THE PARTIES.
1. The clear language of the statutory Some mediators do not take this
scheme and other indications of requirement seriously and are very sloppy
legislative intent reflect that with having the parties reduce it to
disallowing an implied waiver would not writing.
produce absurd consequences, but was Reduce the settlement to writing AT the
rather an intended consequence. mediation. IF NOT, ONE PARTY WILL HAVE
2. Evidence Code section 1119 sweeps BUYER'S REMORSE AND will later REVOKE THE
broadly and renders all communications oral CONSENT TO SETTLE.
and writings made during mediation The parties should draft the settlement
inadmissible except as otherwise agreement, not the mediator.
specified in the statutes. Evidence Code Make sure that there is a provision in
Section 1122 plainly states that the agreement that the settlement is
mediation communications or writings may enforceable pursuant to California Code
be admitted only on agreement of all of Civil Procedure section 664.6, which
participants. Such agreement must be states that the Superior Court will
express, not implied. The Legislature retain jurisdiction to enforce the terms
intended Evidence code section 1122 to of the settlement. Following these few
give litigants control over whether a simple steps will insure that the dispute
mediation communication will be used in has settled and is enforceable if one
subsequent litigation. party does not keep the terms of the
3. Code of Civil Procedure section 128.5 agreement.




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