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Interim agreements made during mediation are not automatically permanently binding: they only acquire binding force when they are included in a settlement agreement. The Supreme Court confirmed that parties may not rely on interim agreements remaining legally valid after the conclusion of the mediation. A well-drafted settlement agreement is therefore crucial. Read below to find out how it works.
Mediation: fast, confidential, and under your own control
Mediation is an effective way to resolve disputes out of court. With the help of a neutral mediator , parties seek a joint solution in a confidential atmosphere. The benefits include cost and time savings, and retaining control over the outcome. A negotiated solution is generally better accepted and adhered to than a judgment imposed by a judge.
Interim agreements: only binding in the settlement agreement
During mediation, parties may make interim agreements to promote progress, build trust, or resolve specific issues. These agreements apply while work is being done on an overall settlement and may concern procedural steps, temporary arrangements, or specific points of the dispute.
Important: interim agreements are not necessarily permanently binding. They only acquire binding force when they are included in a settlement agreement. According to the Supreme Court (ECLI:NL:HR:2013:2049), parties may not rely on interim agreements remaining legally binding after mediation — recently reaffirmed (ECLI:NL:PHR:2023:590).
Therefore, ensure that all binding agreements are clearly stated in the settlement agreement, including the consequences of non-compliance.
Alternatives to mediation
Besides mediation, there are other ways to settle a dispute:
- Arbitration: an arbitrator makes a binding decision, suitable for complex cases requiring technical expertise;
- Binding advice: an expert decides on the dispute, and the parties accept that decision in advance as binding;
- Dispute resolution committees: accessible and cost-effective, especially for consumer disputes, sector- or industry-specific — pay attention to the performance guarantee clause.
Frequently Asked Questions
Are interim agreements during mediation binding?
Not automatic and not permanent. They only become binding when they are included in a settlement agreement.
Why is a settlement agreement so important?
Because only agreements made therein become legally binding and enforceable. Without that agreement, you cannot rely on the interim agreements.
What must be included in the settlement agreement?
All binding agreements, explicitly designated as binding, plus the consequences of non-compliance.
What are alternatives to mediation?
These include arbitration, binding advice, and dispute resolution committees. Which one is appropriate depends on the nature and complexity of the dispute.
Need help with mediation or a settlement agreement?
We support you with mediation and draft a settlement agreement that makes your agreements legally binding and enforceable. We also advise on the most suitable alternative to mediation.
View our mediation expertise or schedule a no-obligation intake interview .