If you run a construction company and a dispute has arisen over defects, you need to carefully think about how the outcome of this case could affect the future of your business. Moreover, the way in which you handle the dispute could have a significant impact on the outcome of the case. In some instances, the contractor or claimant decides to resolve the dispute by working with a mediator.
Before considering this option, make sure you have a clear understanding of the various requirements associated with mediation involving construction defect cases.
What do courts require before mediating disputes?
According to the Texas Constitution and Statutes’ website, claimants and contractors have the ability to mediate a dispute over construction defects if the amount of damage exceeds $7,500. However, parties who wish to work with a mediator must file a motion to mediate the dispute within 90 days from the initial date of the filing of the lawsuit. Moreover, if the court orders parties involved to mediate the dispute, the court must do so within 30 days after the filing of the motion. In some instances, the court extends this limit if the court comes to the conclusion that parties need more time or both parties agree to a different timeframe.
What if you cannot agree on the mediator?
In some instances, claimants and contractors cannot reach an agreement on which mediator to work with to resolve the dispute. In these instances, the court appoints the mediator. Moreover, both parties must cover an equal share of the costs of mediation, unless the parties involved reach a different agreement.