Although mediation follows the principle of equality and is voluntary, faithfulness is the basic norm of conduct in society. In practice, some parties promise and then deny in succession without sufficient reason, and refuse to accept the settlement originally agreed upon, wasting time and manpower mediation as well as judicial and social resources. To strengthen the mediation procedure, advocate and maintain the value of faithfulness, the court shall regulate and reprimand the behavior of any obvious improper refusal of a rational settlement.　The following risk notice for refusing rational settlement will help you understand relevant contents. Please read carefully.

1. What is a Rational Settlement?

A rational mediation settlement refers to the dispute resolution which is preliminary reached and appeases most of the parties’　wishes and specialization of the mediation guidance. The parties will make a pre-judgment of the dispute based upon the facts of the dispute and common sense. From the trial, the court will make a judgment of disputes upon the basis of judicial proceedings. If the court’s decision does not exceed the advice of the mediation, then refusal to the settlement shall be considered as an improper refusal. Therefore, please consider the rational settlement seriously before refusing.

2. What are the Preconditions for the Restraint Mechanism? 　　

2.1 Any concerned party who refuses or disrupts the mediation without appropriate reasons will be required to bear severe consequences: the judge may adjust the distribution of the litigation costs and attorney fees.

2.2 According to each specific situation, the judge shall aim to fairly determine whether the concerned party has reasonable ground to refuse or obstruct the mediation.

3. The Adverse Consequences of Refusing a Rational Settlement 　　

The party refusing the mediation settlement will be required to bear the attorneys’　fees, evidence fees, transportation expenses, accommodation fees, lost wages and other expenses incurred in mediation. The opposing party makes a rebuttal, evidence documents for refusing the mediation settlement or the material of participation in pre-litigation mediation at a minimum level shall be submitted.

If the concerned party proposes a specific mediation settlement which is refused by the opposing party, and if the result of the judgment made by this court does not exceed the amount of the settlement or mediation plan, the opposing party shall bear the attorney fees after the receipt of the settlement or mediation plan, and the court shall support it.

4. Exceptional Situation

　　　If the concerned party or the other party actively proposes reconciliation, but the party refuse to reconcile without justifiable reasons or do not cooperate in the process of reconciliation later, and at the same time proposes the other party to bear the attorney fees, the Court shall not support it.