Common use of Mandatory Non-binding Mediation Clause in Contracts

Mandatory Non-binding Mediation. In the event there is any material dispute between the Parties to this Agreement relating in any way to or arising out of this Agreement, the Parties must mediate such dispute before commencement of any legal action. For clarity, no Party to this Agreement can bring legal action against another Party to this Agreement without first participating in mediation, unless one Party refuses to submit to mediation and legal action is brought to specifically enforce this mandatory mediation provision of this Agreement. Mediation shall take place only in Columbia, South Carolina. If the Parties cannot agree upon the person to act as the mediator, then the American Arbitration Association of Charlotte, NC, shall select a person to act as the mediator. The mediator’s charges and expenses shall be split by the Parties on a 50/50 basis. The mediation fees and costs do not include each Party’s attorney fees and costs, nor any travel or other expenses of the Party, its attorneys or other representatives. Each Party shall be responsible for his or her own attorneys’ fees and costs at mediation. Those costs may not be assessed against the other Party if the other Party is the prevailing Party. If the dispute cannot be resolved at mediation either Party may then proceed to pursue litigation in accordance with subparagraph (j) of this Section.