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Courts are not empowered to compel mediation of disputes in accordance with a contract in the same way that courts are empowered to compel arbitration under the Federal Arbitration Act (FAA), according to a federal district court in Oklahoma.
In Oklahoma City Water Utilities Trust v. Systems & Software, Inc., No. CIV-07-259-F, 2007 WL 2729369 (W.D. Okla. Sept. 19, 2007), Oklahoma City Water Utilities (OCWU) entered into a contract with Systems & Software (S & S) to purchase certain software systems. Later, a dispute arose between the parties, and both filed various court claims against the other. S & S subsequently filed a motion to compel mediation of the claims in accordance with a provision in the contract. OCWU opposed the motion, claiming that the Court had no authority to compel mediation.
The Court agreed with OCWU, holding that nothing in statute or common law granted it the power to compel mediation of a particular dispute, even when “mandated” in a contract provision. The Court rejected S & S’s argument that a motion to compel mediation could be analogized with a motion to compel arbitration; the Court noted that the power to compel arbitration was bestowed on courts by the FAA, and there was no such provision for compelling mediation.
The Court opined that to allow it to compel mediation without authority under any statute would amount to requiring specific performance of the contract when disputed issues of fact still existed.
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