Compensation of the Mediator and Sanctions

(a) By Agreement. When a mediator is stipulated to by the parties, compensation shall be as agreed upon between the parties and the mediator. Notwithstanding the terms of the parties’ agreement with the mediator, subsection (d) of this rule shall apply to an issue involving compensation of the mediator. Subsections (e) and (f) of this rule shall apply unless the parties’ agreement provides otherwise. (b) By Court Order. When a mediator is appointed by the court, the parties shall compensate the mediator for mediation services at the rate of $150 per hour. The parties shall also pay the mediator a one-time, per-case administrative fee of $175, due upon appointment. (c) Change of Appointed Mediator. Under Rule 2(a), the parties may select a certified mediator to conduct the mediated settlement conference. Parties who fail to select a certified mediator and then desire a substitution after the court has appointed a mediator shall obtain court approval for the substitution by filing a Consent Order for Substitution of Mediator, Form AOC-CV-836. The court may approve the substitution only upon proof of payment to the court’s original appointee of the $175 one-time, per-case administrative fee, any other amount owed for mediation services under subsection (b) of this rule, and any postponement fee owed under subsection (e) of this rule. 20 TOC Rule 7 (d) Indigent Cases. Any party found to be indigent by the court for the purposes of these rules shall not be required to pay a mediator’s fee. A mediator conducting a mediated settlement conference under these rules shall waive the payment of fees from parties found by the court to be indigent. Any party may move the senior resident superior court judge for a finding of indigency and ask to be relieved of that party’s obligation to pay a share of the mediator’s fee using a Petition and Order for Relief from Obligation to Pay Mediator’s Fee, Form AOC-CV-814. The motion shall be heard subsequent to the completion of the conference or, if the parties do not settle their dispute, subsequent to trial. In ruling upon the motion, the judge shall apply the criteria enumerated in N.C.G.S. § 1-110(a), but shall consider the outcome of the action and whether a judgment was rendered in the movant’s favor. The court shall enter an order granting or denying the party’s motion. (e) Postponements and Fees. (1) (2) As used in subsection (e) of this rule, “postponement” means to reschedule or not proceed with a mediated settlement conference once a date for a session of the conference has been scheduled by the mediator. After a conference has been scheduled for a specific date, a party may not unilaterally postpone the conference. A mediated settlement conference session may be postponed by the mediator for good cause only after notice by the movant to all parties of the reason for the postponement and a finding of good cause by the mediator. Good cause exists when the reason for the postponement involves a situation over which the party seeking the postponement has no control, including, but not limited to: (i) the illness of a party or attorney, (ii) a death in the family of a party or attorney, (iii) a sudden and unexpected demand by a judge that a party or attorney for a party appear in court for a purpose not inconsistent with the guidelines established by Rule 3.1(d) of the General Rules of Practice for the Superior and District Courts, or (iv) inclement weather exists, such that travel is prohibitive. Where good cause is found, the mediator shall not assess a postponement fee against a party. (3) The settlement of a case prior to the scheduled date for mediation shall be good cause for postponement; provided, however, that the mediator was notified of the settlement immediately after it was reached and at least fourteen calendar days prior to the date scheduled for the mediation. (4) Without a finding of good cause, a mediator may also postpone a scheduled mediated settlement conference session with the consent of all parties. A fee of $150 shall be paid to the mediator if the postponement is allowed. However, if the request for a postponement is made within seven calendar days of the 21 TOC Rule 7 scheduled date for mediation, then the postponement fee shall be $300. The postponement fee shall be paid by the party requesting the postponement, unless otherwise agreed to by the parties. Postponement fees are in addition to the one-time, per-case administrative fee provided for in subsection (b) of this rule. (5) If the parties select a certified mediator and contract with the mediator as to compensation, then the parties and the mediator may specify in their contract alternatives to the postponement fees otherwise required under subsection (e) of this rule. (f) Payment of Compensation by Parties. Unless otherwise agreed to by the parties or ordered by the court, the mediator’s fee shall be paid in equal shares by the parties. For purposes of this rule, multiple parties shall be considered one party when they are represented by the same counsel. Parties obligated to pay a share of the fees shall pay them equally. Payment shall be due upon completion of the mediated settlement conference. Comment Comment to Rule 7(b). Court-appointed mediators may not be compensated for travel time, mileage, or any other out-of-pocket court-ordered expenses associated with a mediation. Comment to Rule 7(e). Nonessential requests for postponements work a hardship on parties and mediators and serve only to inject delay into a process and program designed to expedite litigation. It is expected that mediators will assess a postponement fee in all instances where a request does not appear to be absolutely warranted. Moreover, mediators are encouraged not to agree to a postponement in instances where, in the mediator’s judgment, the mediation could be held as scheduled. It is not unusual for two or more related cases to be mediated collectively. A mediator shall use his or her business judgment in assessing the one-time, per-case administrative fee when two or more cases are mediated together, and set his or her fee according to the amount of time that he or Comment to Rule 7(f). If a party is found she spent in an effort to schedule the matters for by a senior resident superior court judge to have mediation. The mediator may charge a flat fee of $175 if scheduling was relatively easy, or failed to attend a mediated settlement conference multiples of that amount if more effort was without good cause, then the court may require that party to pay the mediator’s fee and related required. expenses. History Note. 373 N.C. 663; 374 N.C. 990; Order Dated 11 December 2024.