Mediation in Maryland is a confidential settlement process, governed mainly by Title 17 of the Maryland Rules, in which a trained neutral helps the parties try to resolve a dispute before trial. A judge can order it, or the parties can agree to it on their own, and it applies to custody and divorce cases, contract fights, personal injury claims, and most other civil matters. If you reach a deal, you sign it in the session; if you don’t, the case goes back to the judge.
When a Court Will Send Your Case to Mediation
Under Rule 17-202, a Maryland court can refer all or part of a case to mediation and designate a mediator from a list of approved practitioners maintained through the Maryland Alternative Dispute Resolution Commission (MACRO).1New York Codes, Rules and Regulations. Maryland Rules Rule 17-202 – General Procedure The referral order sets a maximum number of hours of required participation, and if the mediation is fee-for-service, the order also caps the mediator’s hourly rate. Title 17 covers Circuit Court, District Court, the Appellate Court, and Orphans’ Court proceedings, so referrals can happen across the court system.
You Can Object
You are not stuck with the referral. Rule 17-202 lets any party file a written objection within 30 days of the order, and a timely objection blocks the court from forcing you into that particular ADR process.1New York Codes, Rules and Regulations. Maryland Rules Rule 17-202 – General Procedure The court can still require you to attend a non-fee-for-service settlement conference, which is a separate and more limited proceeding. Within the same 30-day window, you can also ask to swap in a different mediator or propose an alternative ADR method.
Custody, Visitation, and Divorce
Family law is where referrals happen most often. When both parties have attorneys and there is no allegation of domestic abuse, Maryland courts routinely refer contested custody or visitation cases to mediation. The referral is typically capped at four hours across no more than two sessions, and the mediator can recommend another four hours if progress is being made. The scope is limited to custody and visitation unless both parties agree to expand it, and cases involving a history of domestic violence or abuse allegations may be excluded entirely.
Divorce and annulment cases involving property division or alimony can also be sent to mediation, but the mediator has to meet extra qualifications under Rule 17-205, including at least 20 hours of specialized training in marital economic mediation.2New York Codes, Rules and Regulations. Maryland Rules Rule 17-205 – Qualifications of Court-Designated Mediators
What Happens in the Session
The mediator opens with the ground rules, the confidentiality framework, and the structure for the day. This is the same whether the session is in a conference room or on a virtual platform. Each side then presents its version of the dispute without interruption.
From there, the mediator usually shifts to private caucuses, meeting with each side separately to test assumptions and probe for room to move. The shuttle continues until the parties either reach an agreement or conclude that settlement is out of reach. If no deal is reached, the case simply returns to the judge. Participating in mediation does not waive your right to a trial.
If you do settle, the terms go in writing during the session. Spell out every obligation concretely: who pays what, by when, and what happens if someone fails to comply.3Maryland Courts. Mediation TIP 14 Vague language now tends to become new litigation later.
What Stays Confidential
Confidentiality is the reason mediation works, and Maryland handles it through two overlapping frameworks. Which one applies depends on how you got to the table.
Court-Ordered Mediation Under Rule 17-105
For cases referred under Title 17, Rule 17-105 prohibits mediators, parties, and other participants from disclosing mediation communications in any judicial, administrative, or other proceeding, and those communications cannot be reached through discovery.4New York Codes, Rules and Regulations. Maryland Rules Rule 17-105 – Mediation Confidentiality The protection covers what is said, written, or exchanged during the mediation.
Three narrow exceptions allow disclosure:
- To prevent serious physical harm or death, a mediator, party, or participant can disclose communications to a potential victim or to law enforcement if they reasonably believe disclosure is necessary.
- Communications can be disclosed when relevant to a claim or defense that the mediator acted improperly or negligently.
- If a party argues an agreement should be set aside for fraud, duress, or misrepresentation, the underlying communications become discoverable.
One catch worth knowing: the signed agreement itself is not confidential unless both parties specifically agree in writing to keep it private.4New York Codes, Rules and Regulations. Maryland Rules Rule 17-105 – Mediation Confidentiality The negotiation is shielded; the deal, by default, is not.
Private and Non-Court Mediation
If your mediation is not court-ordered under Title 17, the Maryland Mediation Confidentiality Act at Sections 3-1801 through 3-1806 of the Courts and Judicial Proceedings Article may apply.5Maryland General Assembly. Maryland Code Courts and Judicial Proceedings 3-1802 – Applicability It covers mediations required by law, mediations referred by administrative agencies or arbitrators, and private mediations where the mediator confirms in writing that the Maryland Standards of Conduct apply and communications will remain confidential.
The substance is similar. Mediators and parties cannot disclose or be compelled to disclose mediation communications.6Maryland General Assembly. Maryland Code Courts and Judicial Proceedings 3-1803 – Confidentiality of Mediation Communications The exceptions mirror Rule 17-105 with one added safety valve: a court can order disclosure when it finds this necessary to prevent injustice or harm to the public interest serious enough to outweigh the integrity of mediation.7Maryland General Assembly. Maryland Code Courts and Judicial Proceedings 3-1804 – Documents Recording Points of Agreement and Other Permissible Disclosures of Mediation Communications The standard is deliberately high.
Under either framework, evidence that was already admissible or discoverable before mediation does not become protected because someone mentioned it in a session. You cannot launder documents into confidentiality by walking them into the room.
Who Your Mediator Will Be
Rule 17-205 sets a floor for court-designated mediators. Every one must complete at least 40 hours of basic mediation training covering conflict resolution theory, mediation techniques, ethics, and monitored role-play, must have mediated or co-mediated at least two civil cases, and must complete four hours of continuing education each calendar year.2New York Codes, Rules and Regulations. Maryland Rules Rule 17-205 – Qualifications of Court-Designated Mediators
Specialty cases add requirements on top. Mediators for the Business and Technology Case Management Program must have served as a mediator in at least five non-domestic civil mediations, with at least two involving conflicts of the type assigned to that program. Health care malpractice mediators face their own extra requirements.2New York Codes, Rules and Regulations. Maryland Rules Rule 17-205 – Qualifications of Court-Designated Mediators
Beyond the rules, membership in the Maryland Program for Mediator Excellence (MPME) is a voluntary marker of ongoing quality. Membership is free but requires ten hours of continuing education annually, including two hours of ethics, and adherence to the Maryland Standards of Conduct for Mediators.8Maryland Courts. About the Maryland Program for Mediator Excellence
What It Costs
Price depends on the venue. Court and community programs are often free or offered on a sliding income scale.9Maryland Courts. Mediation and ADR Maryland has community mediation centers located throughout the state, many of which offer remote sessions.10Maryland Courts. Find Mediation Services
Fee-for-service court referrals and private mediations cost more. When a court refers a case to fee-for-service mediation, the referral order caps the hourly rate.1New York Codes, Rules and Regulations. Maryland Rules Rule 17-202 – General Procedure The parties typically split the fee. Private mediators set their own rates, and experienced neutrals handling complex commercial or family disputes can run several hundred dollars an hour. Even at that level, the total tends to be a fraction of the legal fees for a multi-day trial.
Rule 17-205 also requires court-designated mediators to accept, on request by the court, a reasonable number of referrals at reduced fees or pro bono.2New York Codes, Rules and Regulations. Maryland Rules Rule 17-205 – Qualifications of Court-Designated Mediators If cost is a real barrier, raise it with the court or ask MACRO about options.
How to Prepare
In custody or visitation mediation, preparation is less about paperwork and more about clarity. Know the schedule you want, know your concerns about the other parent’s proposal, and know what you can actually live with. With a four-hour cap common in court referrals, wasted time hurts you directly.
For cases involving child support, alimony, or property division, each party must complete a Financial Statement. Form CC-DR-030 is used when the parties’ combined income is $30,000 or less, and form CC-DR-031 is used when combined income exceeds $30,000.11Maryland Courts. Family Law Court Forms Both forms ask for detailed monthly income, expenses, assets, and debts. Bring supporting documents: recent pay stubs, tax returns, property appraisals. A mediator cannot help divide what they cannot see.
For contract disputes, personal injury cases, and business conflicts, gather the correspondence, signed agreements, invoices, and proof of payments or damages. Many mediators ask each party to submit a written mediation statement in advance laying out the facts, the disputed issues, and the desired outcome. That statement frames the dispute before the session starts, so the time you put into it pays back at the table. If the mediator sends an intake form, fill it out completely.
Making the Agreement Stick
A signed mediation agreement is a contract between the parties, but its enforceability changes once the court gets involved. In court-connected cases, the agreement can be filed with the Circuit or District Court and incorporated into a court order or placed in the court file.3Maryland Courts. Mediation TIP 14 Once a judge approves the terms, the agreement becomes a court order.
That distinction matters when someone does not follow through. A standalone contract forces you to file a breach-of-contract lawsuit. A court order can be enforced through contempt, which brings court-imposed penalties. If your case is already in litigation, getting the deal incorporated into an order is almost always worth it.
Available remedies for a breach include asking the court to order performance as written, seeking monetary damages for losses caused by the breach, or requesting an injunction against continued violation. In extreme cases, the non-breaching party can ask to rescind the agreement and return to litigation.
Taxes on What You Receive
The IRS looks at what a settlement payment is for, not at the fact that it came out of mediation. Under 26 U.S.C. Section 104(a)(2), damages received on account of personal physical injuries or physical sickness are excluded from gross income, whether paid as a lump sum or in installments.12Office of the Law Revision Counsel. 26 USC 104 – Compensation for Injuries or Sickness The exclusion covers compensation for medical expenses and pain and suffering tied to a physical injury. Emotional distress by itself does not count as a physical injury or sickness under the statute, so settlements for purely emotional harm are taxable. Amounts paid for medical care attributable to emotional distress can still be excluded if the taxpayer did not already deduct those expenses in a prior year.
Some categories are taxable regardless of the underlying claim:
- Punitive damages are taxable in every case, even when tied to a physical injury claim.
- Amounts replacing lost wages or profits are taxed as ordinary income.
- Interest that accrues on a settlement or judgment is taxable.
Allocation matters. The IRS generally respects written settlement agreements that assign specific portions to non-taxable categories like physical injury or medical expenses, provided the allocation reflects the actual intent of both parties. If your case involves both taxable and non-taxable components, negotiating a clear written allocation during the mediation itself can save real money at tax time.