A voluntary or lease-required dispute resolution process where a neutral third party helps the landlord and tenant negotiate a settlement. Unlike arbitration, the mediator does not impose a decision.
Mediation is a non-binding dispute resolution process facilitated by a trained neutral party. In commercial leases, mediation clauses may require the parties to attempt mediation before proceeding to arbitration or litigation. The mediator helps both sides identify common ground and explore settlement options but has no authority to impose a resolution. Either party can walk away if mediation fails. Mediation communications are typically confidential and inadmissible in subsequent proceedings, encouraging candid negotiation.
A landlord agrees to mediation over a CAM overcharge but sends a representative with no settlement authority, using the process to delay the tenant's audit rights deadline while appearing cooperative.
If your lease requires mediation before litigation, initiate it promptly so it does not eat into your audit rights window. Confirm in writing that the mediation process tolls (pauses) any contractual deadlines. Ensure the landlord sends someone with actual authority to settle.
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Find My OverchargesThis page provides general educational information. It is not legal advice and may not reflect the most current law in your state. Consult a licensed attorney for advice specific to your situation.
