REPORT TO COUNCIL AND STADIUM AUTHORITY BOARD
SUBJECT
Title
Action to Adopt Resolutions Agreeing to Confidentiality Requirements and Delegating Authority to City Manager/Executive Director and City Attorney/Stadium Authority Counsel to Sign New Mandatory Mediation Disclosure Statement Pursuant to SB 954
Report
BACKGROUND
On January 1, 2019, SB 954 went into effect. The new law modifies the existing requirements relating to confidentiality of discussions occurring in the context of mediation of claims and litigation, and creates a new requirement for "informed consent" by a client prior to participating in mediation. Under the new law, an attorney must provide to his or her client a printed disclosure containing the confidentiality restrictions related to mediation, and the client must sign a printed acknowledgment stating that the client has read and understands the confidentiality restrictions. While the failure to comply with this new requirement would not invalidate a settlement reached at mediation, it may result in the non-confidentiality of discussions held at the mediation, which could negatively affect the City's position in the case it proceeds to trial.
DISCUSSION
For many reasons - including judicial economy/efficiency and democratic values of self-determination - voluntary resolution of disputes is the favored policy in California. Disputes are most often voluntarily resolved through the mediation process, which generally involves the parties and their legal counsel meeting with a neutral mediator who fosters discussion of disputed issues in a constructive manner, with the common goal of reaching a resolution that is in the best interests of all the involved parties. Such discussion often includes candid statements and fact-sharing on sensitive topics. For example, updates on medical treatments and prognosis are often provided in mediation of a personal injury or worker's compensation case. This information-sharing is necessary in order to r...
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