Resources / Study / Innovation for Court ADR

Just Court ADR

The blog of Resolution Systems Institute

Posts Tagged ‘lawsuit’

Developing Mediation Programs as an Exercise of Police Power?

Heather Scheiwe Kulp, December 7th, 2011

The foreclosure crisis is real, and it is not dissipating anytime soon. So why would a borrower advocate undermine a process meant to facilitate resolutions?

State and local governments seek creative ways to resolve the crisis. Some have looked to mediation and its rich history of providing a forum to disputing parties – including parties to foreclosures – to discuss alternatives to litigation. Courts (in judicial foreclosure states) and other government entities (in non-judicial foreclosure states) have created mediation programs to encourage borrowers and servicers to talk face-to-face about options other than foreclosure. These options include loan modifications as well as graceful exits.

Now, a court case in Nevada (Wells Fargo v. Renslow) challenging the constitutionality of Nevada’s non-judicial Foreclosure Mediation Program threatens to dismantle 30 years of good work mediators and mediation developers have done. And it’s not because Wells Fargo claims that the Program violates the U.S. Constitution’s contracts clause. (more…)