Summary
The Utah Supreme Court held that communications made during mediation are confidential and that mediation counsel could not be compelled to testify about an alleged oral settlement agreement absent an applicable exception. It further held that a settlement reached in mediation must be reduced to writing and signed by the parties to be enforceable by a court. The court reversed the trial court's order requiring the attorney's deposition and ordered portions of the record containing confidential mediation information sealed.
Topics
Practice areas
Questions Presented
- Whether Utah's mediation-confidentiality laws protected communications concerning an alleged oral settlement agreement from disclosure and prohibited the deposition of LWP's mediation counsel.
- Whether an agreement reached during mediation must be reduced to writing and signed by the parties to be enforceable by a court.
Holdings
- Utah's mediation-confidentiality provisions protect information obtained during the mediation, including information concerning the alleged existence of an oral agreement, unless an applicable statutory exception applies or all parties and the mediator agree to disclosure. Because LWP did not consent and no exception applied, its attorney could not be required to testify about the mediation.
- An agreement reached in the course of mediation must be reduced to writing and signed by all parties to the agreement in order to be enforceable by a court.
Key quotations
“Under this rule, unless LWP consents, along with Reese, Tingey Construction, and the mediator, Acosta is prohibited from disclosing information obtained during the mediation, including information related to the alleged existence of an oral agreement.” (at 609)
“We therefore hold that Utah law requires agreements reached in mediation to be reduced to a writing and signed by all the parties to the agreement in order for the agreement to be enforceable by a court.” (at 611)
Factual background
Murlyn Craig Reese was injured when a temporary railing at a construction site failed while he was working for a subcontractor of Tingey Construction. After the workers' compensation insurer entered liquidation, the Utah Property and Casualty Insurance Guaranty Association assumed responsibility for Reese's medical expenses and retained LWP Claims Solutions, Inc. to administer payments and protect the Association's subrogation interest. During a mediation involving Reese, Tingey Construction, and LWP, Reese alleged that he and LWP reached an oral settlement, but LWP declined to sign a memorandum of understanding because it disputed one of the terms.
Procedural history
Reese sued Tingey Construction for negligent construction after a temporary balcony railing failed and injured him. Reese, Tingey Construction, and LWP participated in mediation; Reese alleged that he and LWP reached an oral settlement, but LWP refused to sign a memorandum of understanding. Reese and Tingey Construction moved to enforce the settlement, and the trial court ordered LWP's counsel to testify about the mediation. The Utah Supreme Court granted LWP's petition for discretionary interlocutory appeal and reversed the order.
Remand instructions
The trial court's order requiring Acosta to appear and be deposed regarding the mediation was vacated. Portions of the record disclosing confidential mediation information were ordered sealed, and any trial judge who reviewed confidential mediation information in the case was ordered to recuse from further proceedings.