Mediation

Mediation is a structured, interactive process where a qualified neutral assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques.

Yes. For cases pending before the court, parties may request mediation before one of the tax court judges. 

Parties also may resort to outside mediators or other forms of alternative dispute resolution, at the parties’ own expense.

• Cost: Mediation generally takes much less time than full-blown litigation. Taking less time means expending less money on fees and costs. 
• Confidentiality: While court hearings are public, mediation remains strictly confidential. No one but the parties to the dispute and the mediator or mediators know what happened. 
• Control: Mediation increases the parties’ control over the resolution of their dispute. Although mediation does not guarantee that parties will resolve their dispute, it does increase the control over settlements that are reached. Conversely, if parties ask a judge to resolve their dispute, the judge decides the outcome.

The parties must agree to mediation in good faith, and must agree that any mediation agreement is binding (as opposed to proceeding to an in-court resolution). The presiding judge (or the chief judge, in a case not yet assigned) must have determined that mediation is appropriate, meaning it is likely to resolve the dispute and not constitute a waste of the court’s and parties’ time and resources. Mediation may not be appropriate when the parties’ sole dispute is one of statutory interpretation. 

Some judges prefer (or require) that a case have reached a certain point before the parties request mediation. For example, some judges may not consider mediation requests until the parties have completed discovery, or submitted full pretrial briefing. To inquire into the specific judges’ preferences before requesting mediation in a case contact court administration.

The outcome depends entirely on the parties, who may or may not reach agreement. Agreement to mediation does not guarantee agreement to resolve the dispute in mediation.

The court does not charge a fee for mediation before a tax court judge. Counsel may charge clients for their time.

Yes. All three tax court judges are qualified civil facilitative neutrals (Rule 114.13(a)).

No. If your case is considered appropriate for mediation, the presiding judge will refer your case to one of the other tax court judges and inform you of the referral.

If both parties have agreed to request mediation, contact court administration to request mediation. In the subject line, state “Mediation Request” the case name, and case number. The presiding judge will review relevant case filings and decide if the case is a good candidate for mediation. In addition, the judge likely will contact the parties for a pre-mediation evaluation. 

If the presiding judge determines the case is appropriate for mediation, they will refer it to another judge for mediation.

Before mediation, you will be required to sign a mediation agreement and submit a letter outlining the strengths and weaknesses of your case. The mediating judge will provide you with more specifics, and most likely ask you to provide documents supporting your position to assist them in facilitating the dispute. 

Unless otherwise informed, plan to attend mediation for a full day. Someone with settlement authority must attend. You can expect a discussion with the mediating judge about the facts of your case and your settlement position. You may or may not have the opportunity to discuss settlement directly with your adverse party, depending whether the mediator believes this is appropriate. 

If you are able to resolve your dispute, you will be expected to finalize an agreement at the mediation.

Your case will continue towards trial. The mediating judge will not discuss or otherwise share information about your case with the presiding judge. You are still free to settle the case at any time before the court issues a decision.