How Is a Mediated Settlement Agreement Enforced in New York?

A mediated settlement agreement in New York is enforceable as a binding contract once signed by all parties. Under CPLR $2104, a stipulation of settlement — which is what a mediated agreement typically becomes once reduced to writing and signed — is binding on the parties and may be enforced by motion in the pending action. If no action is pending, the agreement is enforceable as a contract in a separate breach of contract action. In matrimonial cases, the parties' Separation Agreement or Stipulation of Settlement must be incorporated into the divorce judgment by the court; once incorporated, it is enforceable as both a contract and a court order, giving the aggrieved party the option of a contempt proceeding or a breach of contract action. For agreements reached in CDRC mediations, the agreement is filed with the CDRC and, if the parties choose, can be filed with the court as a stipulation. A party seeking to vacate a mediated settlement agreement must show fraud, duress, mutual mistake, or unconscionability — the same grounds applicable to any contract. Courts in New York have consistently upheld mediated agreements and are reluctant to set them aside absent clear evidence of procedural impropriety.