Court Rejects ‘Fraud Exception’ to Mediation Confidentiality

Oct. 27, 2016, 4:00 AM UTC

A construction firm that claims a lawyer lied at a mediation to induce a settlement his clients never intended to pay can’t use the alleged statement to prove fraud claims against him, the Massachusetts Court of Appeals ruled Oct. 6 (ZVI Constr. Co. v. Levy, 2016 BL 334409, Mass. App. Ct., No. 15-P-359., 10/6/16).

The court said a confidentiality clause in the parties’ mediation agreement barred all of the mediation participants from using communications that occurred during the mediation in any subsequent legal proceedings.

Accordingly, the court said, the construction firm couldn’t point to the opposing lawyer’s allegedly ...

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