California Court Side Steps Mediation Confidentiality and Stretches to Find a Settlement Agreement.

Counsel can no longer assume that anything thathave agreed to. (Weddington Productions, Inc. v.
happens, especially written notes, is protected byFlick, 60 Cal.App.4th at pp. 811-812.) The court
the confidentiality provision. The California Court ofstated that 'There are occasions in which minor
Appeal in the case of Estate of Thottams (matters in elaborate contracts are left for future
August 13, 2008) found that a document in chartagreement. When this occurs, it does not
form that was prepared during a mediation tonecessarily mean that the entire contract is
demonstrate how assets should be allocatedunenforceable.' (Id. at p. 813.) Applying these
between the heirs, and initials placed next to eachprinciples, the court concluded there was sufficient
entry was a settlement agreement.evidence before the court to establish the
Counsel can no longer assume that anything thatpreliminary fact that the chart created at the
happens, especially written notes, is protected bymediation was a settlement agreement. The
the confidentiality provision. Even if the partiesitems on the chart, while lacking in formality, were
sign the confidentiality agreement at the beginningsufficiently clear to determine the obligations to
of mediation that does not mean that everythingwhich the parties agreed. There were no
is confidential, aside from a Settlementcomplete sentences, nor formal descriptions of
Agreement signed by the parties.the assets being addressed, but the assets were
If a party produces, documents during thenamed in shorthand which apparently was
mediation, ask if this document is protected byunderstood by the parties.
the confidentiality agreement. If a party writesThe court held that the chart was not a model of
notes on a piece of paper, ask what is theclarity, but the chart provided sufficient
purpose of the document and if it is a confidentialinformation about allocation of assets to indicate
writing. If it is confidential, it should be destroyedthe intended obligations of the parties. Whether or
at the end of the mediation. Further, it should benot the document contained all necessary details
identified in the confidentiality agreement that thefor enforcement, it certainly contained adequate
writing is confidential. The parties or mediatormanifestation of mutual consent to material terms
should constantly question the protection ofwhich were capable of being made certain.
writings and conversations during mediation. If not,Without deciding its enforceability, the court
a party will find itself in the situation of theconcluded that the chart constituted a written
Thottams.settlement agreement for purposes of Evidence
The California Court of Appeal in the case ofcode section 1123, subdivision (c).
Estate of Thottams ( August 13, 2008) foundThe lesson learned from Thottams is to question,
that a document in chart form that was preparedquestion, and question during mediation. Mediators
during a mediation to demonstrate how assetsmay not be tuned to the tricks of the parties, so
should be allocated between the heirs, and initialsthe parties should always question the intent of
placed next to each entry was a settlementthe use of a document or writing during mediation.
agreement. Across the top of the chart wereIf a party wants to make certain that the
three columns, labeled with the first initial of eachdocument is protected by confidentiality, it should
sibling. The chart was filled in to designate specificbe noted in the confidentiality agreement.
allocations of the listed assets. The siblings eachMediators should control the process so that they
signed and dated the top of the chart in thedo not get caught testifying as to the intent of
column with his or her initial, and initialed eachthe parties following mediation. Mediators should
entry in that column. Prior to the mediation, thehave the parties sign a confidentiality agreement,
parties signed an agreement which affirmed theif documents are later produced, question its
confidentiality of the mediation except as may beconfidentiality and note the document in the
necessary to enforce any agreements resultingconfidentiality agreement. If the parties need to
from the Meeting.illustrate a point, use a dry ink board. At the end
Following the mediation, one party brought a civilof the mediation, erase what is on the dry ink
action to enforce what he claimed to be aboard. If the parties want what was written on
settlement agreement reached in mediation. Thethe board to become embodied in a settlement
court found that this chart regarding allocations ofagreement, have the parties draft and sign a
assets was a settlement agreement and wassettlement agreement.
exempt from the confidentiality provision. TheIf these simple rules are followed, the court of
court held that the material terms of a profferedappeal will no longer have to stretch to find an
contract must be sufficiently certain to provide aagreement when all the parties did not intend for
basis for determining what obligation the partiesit to operate as an agreement.