Mediation is a voluntary and non-binding process in which a neutral third party assist two or more people who are in a disagreement to find a resolution. Mediation can be a beneficial meeting in which settlement can be reached. In fact,  about 80% of cases resolved before trial through mediation, settlement or are otherwise resolved. Although Mediation is a voluntary, confidential process, where usually the people involved are the ones who decide if the would like to participate, if the dispute is part of an active lawsuit in California, the court can order the parties to attend ordered mediation mandatory mediation. However, existing law prohibits a courts from ordering a civil action into mediation when the amount in at issue is more than $50,000.00. As of January 1, 2027 that will no longer be the case and sets additional guidelines before a case can be ordered to mediation.

Court ordered mediation is designed to force all of the parties to a civil action or lawsuit to work with a trained mediator to see if a mutually agreeable solution to the dispute can be reached. When all of the parties to a matter are open to mediation, the process can be successful. Courts realize that given that usually people who are involved in a lawsuit are not on friendly terms, they may not by prepared to resolve their differences or choose to participate in mediation voluntarily.

However as courtrooms become more packed and backlogs grow, courts have been actively referring open cases or lawsuits to mediation. Currently a judge can only order individuals involved in a lawsuit to participate in mediation if their case is valued at $50,000.00 or less. If their case is valued more than $50,000.00 their case is exempt and can't be ordered to mediation. 

However, starting January 1, 2027, courts will be able to order cases to mediation if they are valued at seventy-five thousand dollars ($75,000) or less. 

However the new law also has safeguards, since ordering a case to mediation, can mean increased attorney fees, it may mean that it can deny vulnerable clients their day in court if they cannot afford it, especially when judges order matters intomediation driven more by the need to manage burdensome civil court calendars than to seek a meaningful resolution of the cases they have.  

The California Assembly Floor Analysis contains one example of a woman of color who was subjected to  workplace sexual and racial harassment. Her case was court ordered and forced into mediation without a full investigation and resolution of discovery issues. The mediation along with the investigation delayed trial up to the point that it not only denied the victim her timely day in court, but increased her attorney costs and fees and was forced to attend a mediation without having her discovery and fact investigation completed. Meaning the mediation was doomed to fail from the start.

To avoid this a case can only be ordered to mediation if (besides being under the $75,000 threshold) there are no ongoing discovery disputes remaining in the matter. This provision ensures that the mediator can assess the full scope of admissible evidence in a case and prevents any party from rejecting a mediated proposal in the hopes of prevailing in a subsequent discovery fight; Mediation must cease, with or without a resolution, 120 days prior to a trial date. This ensures that mediation cannot delay a trial;  The mediation amount in controversy is separated from the finding of the value of the case. This ensures that a mediation determination does not undermine any ultimate financial decisions made in a matter.

The upcoming changes to California's mandatory mediation statutes, effective January 1, 2027, signal a major shift in how civil disputes will be managed in our state's already crowded courtrooms. While the expansion of court-ordered mediation to cases valued up to $75,000 is designed to clear judicial backlogs, it carries significant strategic implications, and potential pitfalls, for business owners, employers, and individual defendants alike.

How the Law Office of Steve Lopez Can Help

At the Law Office of Steve Lopez, we are actively monitoring these legislative developments and preparing our defense strategies accordingly. We will ensure that if your case is ordered to mediation , the process is conducted strictly in compliance with the law with all discovery completed, all safeguards enforced, and your rights fully protected.

Do not wait until a judge orders your case into mediation to understand your options. Proactive legal counsel can mean the difference between a costly, premature settlement and a well-prepared, strategic resolution.