Program History
In 1997, the General Assembly adopted N.C. Gen. Stat. §7A-38.4 establishing a pilot program for pretrial mediation of equitable distribution and other family financial cases. In 1998, N.C. Gen. Stat. §7A-38.4 was revised to expand the program beyond mediation to create a dispute resolution menu in pilot districts. Under the menu, parties could select among: 1) mediated settlement, 2) early neutral evaluation, 3) a judicial settlement conference (where authorized locally), and 4) any other dispute resolution procedure authorized under local statute. The Supreme Court adopted Rules (FFS Rules) implementing the new pilot on December 30, 1998. Seven pilot districts were designated in which to implement the new program. The Commission began to certify family financial mediators in February, 1999. By June 1, 1999, all pilot districts were up and running. Later three additional districts were added to the pilot program.
At the conclusion of the Program's pilot phase, the General Assembly adopted N.C. Gen. Stat. §7A-38.4A authorizing statewide expansion effective October 1, 2001. The Program is now in the process of expanding the number of court districts it serves.
Program Summary
The Supreme Court's Rules for the FFS Program provide that the Chief District Court Judge in any district shall order a mediated settlement conference or other settlement procedure as provided for in the statute in actions involving equitable distribution, child support, alimony, post-separation support, or claims arising out of contracts between the parties under G.S. 50-20(d), 52-10, 52-10.1 or 52B. Once such an order is entered, the parties and their attorneys must attend.
The Family Financial Settlement Program is designed to be market driven in that parties, and not the court or State, pay for the mediator's services. Since they are paying, parties are encouraged to select their mediator or other neutral. Parties may choose a trained mediator who iscertified by the Dispute Resolution Commission or they may nominate a non-certified mediator to conduct their mediation. Certified mediators are qualified attorneys and non-attorneys who have met the requirements for certification set forth in Rule 8 of the Rules Implementing Settlement Procedures in Equitable Distribution or Other Family Financial Cases. If the parties cannot agree on who shall conduct their conference or take no action to select a mediator, a district court judge or his or her designee will appoint a certified mediator to conduct the conference. The mediator is responsible for scheduling the conference and finding a location where it can take place. Conferences are normally held in the courthouse, the office of the mediator, or the office of one of the attorneys. Court appointed mediators are paid $125.00 per hour for mediation services plus a one time, per case administrative fee of $125.00. Court appointed mediators are not reimbursed for travel time or expenses. A mediator selected by the parties is compensated as agreed upon between the mediator and the parties.
The mediator serves as a facilitator only, focusing the parties' discussions and brainstorming with them in a search for settlement options. Following a successful mediation, the agreement reached will be reduced to writing and the court notified that the case has settled. If mediation is not successful, the mediator will report an impasse to the court and the case will proceed to trial. Many times, cases which impasse at mediation go on to settle in the coming weeks as parties and their attorneys continue the discussion begun in mediation.
Program Costs
The Family Financial Settlement Program is designed to operate at no or minimal expense to the taxpayers. The mediators' fees are paid by the parties. However, those who designed the program were mindful that some parties may not be financially able to pay a mediator's fee. In the event a party is determined to be unable to pay any or a full share of a fee, mediators must offer their services to that party at no or a reduced cost. In addition, in districts where the judicial settlement conference alternative is available, it is offered at no charge to the litigants. While some court time will be involved in administering the program, it is anticipated that cases referred to mediation will settle earlier than they would otherwise, leading to time savings elsewhere.
Program Implementation and Supervision
The Administrative Office of the Courts andthe Commission are assisting with expansion of the FFS Programand orientation sessions will be made available to assist court staff and lawyers in districts engaged in establishing a program. The Dispute Resolution Commission is charged with certifying family financial mediators, distributing information on those mediators to court personnel, and regulating mediator conduct. Local programs are managed by the Chief District Court Judges.