NJ Court Rules Mediation Agreements Must Be in Writing


NJ Court Rules Mediation Agreements Must Be in Writing

by Joel N. Kreizman on August 28, 2013

Going forward, parties to mediation in New Jersey must reduce their settlement agreement to writing in order for it to be enforceable. The Supreme Court of New Jersey articulated the new bright-line rule in its decision in Willingboro Mall, LTD. v. 240/242 Franklin Avenue, L.L.C.

The Facts of the Case

Willingboro Mall, LTD. (Willingboro), the owner of the Willingboro Mall, sold the property to 240/242 Franklin Avenue, L.L.C. (Franklin). Willingboro subsequently filed a mortgage foreclosure action on the mall property, alleging Franklin defaulted. The court directed the parties to participate in non-binding mediation. With the assistance of retired judge, Barry Weinberg, the parties agreed to a $100,000 settlement. However, terms of the agreement were not reduced to writing before the conclusion of the mediation session.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Joel Kreizman, Scarinci & Hollenbeck, LLC | Attorney Advertising

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