Special Materials for Realtors
Mediation Primer for Realtors

Comparison of Mediation and Arbitration under the CAR Contract


Selected Cases Interpreting the Mediation Clause of the CAR Contract

Frei v. Davey (2004) 124 Cal.App.4th 1506, 22 Cal.Rptr.3d 429
Provision in the Residential Purchase Agreement barring recovery of attorney fees by a prevailing party in litigation or arbitration who refuses a request to mediate made before the commencement of such proceedings is enforceable.


Blackburn v. Charnley (2004) 117 Cal.App.4th 758, 11 Cal.Rptr.3d 885
Parties who filed a lawsuit and recorded a lis pendens in order to protect their homes from resale to a bona fide purchaser and to preserve their right to seek specific performance were exempt from the mediation requirement in the Residential Purchase Agreement.


Leamon v. Krajkiewcz (2003) 107 Cal. App. 4th 424, 132 Cal. Rptr.2d 362
A party otherwise entitled to recover attorney fees under the Residential Purchase Agreement may not recover those fees if that party commences an action without first attempting to mediate the dispute. Enforcement of this condition serves the public policy of promoting mediation as a preferable alternative to judicial proceedings.


Johnson v. Siegel (2000) 84 Cal.App.4th 1087, 101 Cal.Rptr.2d 412
A party who initiates legal action based on the Residential Purchase Agreement must seek mediation as a condition precedent to the recovery of attorney fees. The mediation provision is mutual and reciprocal because it applies equally to either seller or buyer.