In New Jersey, Superior Court and Municipal Court judges have the ability to require parties to attend a mediation session at any time following the filing of a complaint. The purpose of mediation is to provide an informal and confidential alternative forum for the parties to resolve their dispute without further need of the litigation process.

Rule 1:40 governs all Complementary Dispute Resolution Programs in the state. Rule 1:40-4(i) states "If the mediation results in the parties' total or partial agreement, it shall be reduced to writing and a copy thereof furnished to each party. The agreement need not be filed with the court, but if formal proceedings have been stayed pending mediation, the mediator shall report to the court whether agreement has been reached."

However, in a recent New Jersey Appellate Division case Willingboro Mall Ltd. v. 240/242 Franklin Avenue Associates LLC, A-4589-09, the court ruled the statute's requirement of a written settlement agreement does not mean it must be done so immediately. The court concluded an oral agreement can be enforced when the terms were reduced to writing three days after the session. More specifically, the three judge panel cited the language of rule did not state the agreement must be reduced to writing during the mediation session or that all parties must receive a copy of the agreement before they leave the mediation session.

If you have any questions regarding a special civil or municipal court matter, call Mark & Galusha, attorneys who specialize in Special Civil and Municipal Court issues. Contact us at the "contact us" page, or by calling 908-626-1001 or 973-440-2311.