Mediation

What happens if estate mediation fails?

In short: If estate mediation fails, the parties may proceed to contested court proceedings — typically in the Supreme Court. The confidentiality of the mediation process is preserved; nothing said or offered in mediation can be used in the subsequent litigation. Any partial agreement reached at mediation remains binding.

What failed estate mediation often still achieves

A mediation that does not produce a full settlement is not necessarily a failure. Even unsuccessful estate mediations frequently:

  • Narrow the dispute — the parties may agree on asset values or some distribution questions, leaving fewer contested issues for the court
  • Resolve some claimants while others remain in dispute
  • Reveal the other party's real position, helping legal advisers refine their approach to subsequent proceedings
  • Demonstrate good faith, which courts consider in costs orders

Next steps after failed estate mediation

Dispute typeTypical next step
Family provision claimContested Supreme Court hearing; costs usually from estate
Will validity disputeProbate proceedings; contested hearing with expert evidence
Executor disputeApplication for removal of executor; court administration order
Beneficiary/distribution disputeAdministration action in Supreme Court; court-directed distribution

Costs after failed mediation

Estate litigation costs are usually paid from the estate — meaning all beneficiaries bear the cost of the dispute, not just the losing party. A party who attended mediation in good faith and made reasonable proposals can sometimes use this to their advantage in costs arguments at the conclusion of the proceedings. A party who refused to mediate, or attended in bad faith, may face a personal costs order.

Is a second mediation worth trying?

Yes — often. Estate disputes where the first mediation broke down over asset valuations, executor access to information, or the presence of one difficult party sometimes resolve at a second session once these obstacles are addressed. An independent expert report on property values, or a change in the mediator, sometimes makes the critical difference. Courts support parties attempting a second mediation before hearing.

See our full guide: estate dispute mediation in Australia.

Sources

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