a. Purpose and definitions. Each precinct individually or in cooperation with the presiding judge or justice of the peace for the county may establish a program through which a neutral, trained individual (a “mediator”), with the authorization of the court, can confer with the parties to assist them in attempting to reach a voluntary settlement of their lawsuit. This process is called “mediation.” The provisions of this rule apply to those justice courts that have established such a program. [ARCP 16(g)]

b. Notice of a mediation conference. Within a reasonable time after a response to a complaint has been filed, the court or the mediator will give the parties written notice of a date, time, and place for a mediation conference. The date and time of the mediation conference may be rescheduled by the court or by the mediator for a good reason.

c. Appearance at the mediation conference; providing documents. Every party must participate in the mediation conference in good faith. A party may appear and participate in person, or a party may participate by telephone with the prior approval of the court. Each party at a mediation conference must have lawful authority to settle the lawsuit, or must have a representative available who has the lawful authority to settle the lawsuit. At or before the conference, a party must provide to an opposing party any documents that are relevant to settling the lawsuit.

d. Settlement agreement. The parties and the mediator will discuss a settlement of the lawsuit at the conference. Statements made by a party at the conference, or a party's conduct, including offers of payment or willingness to accept an offer, are inadmissible to establish a claim or defense unless otherwise allowed by law. If a settlement is reached, the mediator will put the terms of the settlement in writing, and will have the parties sign the agreement as an enforceable contract. If a party has appeared by telephone, the mediator will mail the agreement to the party for signature, and the party must promptly sign and return the agreement to the mediator; or with the consent of a party, a mediator may sign the agreement on behalf of that party.

e. Notice to the court. The mediator will notify the court whether the mediation conference resulted in a settlement agreement. If an agreement was reached, the court will vacate any pending court dates. If an agreement was not reached, the mediator will advise the court, and the court will set the lawsuit for a pretrial conference or a trial. If a settlement was not reached because a party failed to participate in good faith, the mediator will inform the court of the manner in which the party failed to show good faith; and the court may order an appropriate penalty provided under Rule 127(d) against that party. Not appearing at a mediation conference without a good reason is a failure to participate in good faith.

f. Court action after settlement at a mediation conference. If the court was notified by the mediator that a lawsuit was settled, the court may dismiss the lawsuit, with notice to the parties, thirty (30) days after the date of the mediation conference. If during that thirty (30) day period a party notifies the court that the terms of the settlement agreement have not been fulfilled, the court may set the lawsuit for a pretrial conference or a trial.