Settlement Payment Plan Mediation
A Settlement Payment Plan Mediation is a structured process in which parties involved in a dispute work with a neutral third-party mediator to negotiate a payment plan related to a settlement agreement. This process is often utilized in cases where a party has agreed to provide compensation to another, but the payment is to be made over time rather than in a lump sum.
In this mediation, the mediator facilitates discussions between the parties to help them arrive at mutually acceptable terms regarding the payment schedule, amounts, and conditions. The goal is to ensure that the settlement is manageable for the paying party while providing assurance and security to the receiving party.
For example, in personal injury cases, a defendant may agree to pay a plaintiff $100,000 as part of a settlement. Instead of paying the full amount upfront, the parties might decide to structure the payments over five years, with quarterly installments. The mediation process assists in drafting a clear payment plan that outlines the timeline, interest (if any), and consequences of non-payment, thereby reducing the likelihood of future disputes.
Settlement Payment Plan Mediation can be beneficial in various contexts, including divorce settlements, contract disputes, and employment-related claims, allowing parties to resolve their differences amicably while maintaining a working relationship.
« Back to Glossary Index