With enactment of the Georgia Uniform Mediation Act (“GUMA”), O.C.G.A. § 9-17-1 et seq., effective July 1, 2021, Georgia stands out as an attractive location for resolution of domestic and international commercial disputes. In addition to joining several states in adopting the Uniform Mediation Act, Georgia is the first state to adopt the United Nations’ Model Law on International Commercial Mediation and International Settlement Agreements Resulting from Mediation.
The Georgia Supreme Court Alternative Dispute Resolution Rules (“ADR Rules”) regulate and provide certain protections to court-involved mediations. However, prior to enactment of the GUMA, there were no similar legal protections for private mediations. The GUMA now affords legal protections to all mediations in Georgia.
For domestic mediations, similar to the ADR Rules, the GUMA establishes a privilege between participants and the mediator that prohibits disclosure of information shared in the mediation unless all parties consent. It also requires mediators to make certain disclosures in order to limit or eliminate potential conflicts of interest. For international mediations, settlement agreements negotiated in Georgia will be binding on all parties and subject to enforcement in Georgia courts. This is a positive development for international companies with offices located in Georgia and/or doing business in the state.
As a result of these recent changes, businesses may want to consider amending existing contracts to specify Georgia as a location for mediations or keep Georgia in mind as a location for mediation clauses in future contracts. Please contact us if you would like assistance in reviewing or drafting any contracts, particularly any alternative dispute resolution clauses.
