How Mediation Works
Mediation is a form of settlement negotiation conducted and assisted by an impartial party (mediator) trained in the art of settling disputes. The mediator makes no findings of fact or law, whether binding or non-binding. Mediation is usually comprised of three stages.
First, all parties and their counsel meet with the mediator in a general session. During this session, the mediator will explain the process and set forth the ground rules. Afterward, each attorney outlines their client's position and the legal and factual issues.
Following the general session, the parties separate into different rooms. The mediator will serve as a diplomat between the parties, visiting with each separately and conveying settlement offers back and forth. Anything said to the mediator during this time cannot be repeated outside the room unless express permission has been granted by the parties. These confidential meetings allow for a candid discussion of the party's interests sought to be protected, settlement flexibility, and strengths and weaknesses of the case.
Lastly, once a settlement has been reached, the mediator will assist the parties in memorializing the essential terms of the agreement to be signed by each party.
The entire proceeding is privileged and confidential. The law prohibits the mediator or any party from discussing anything said during mediation. At most, the mediator may report to the Court whether or not a settlement has been reached.
See Texas Civil Practices & Remedies Code 154 and Texas Rules of Evidence 604.