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How to Enforce a Mediated Settlement Agreement in California After the Other Party Refuses to Sign or Pay

A mediated settlement in California can be enforced as a court judgment—sometimes without a new lawsuit—if it meets key statutory requirements under Code of Civil Procedure section 664.6. Problems usually arise when one party refuses to sign the final paperwork, denies the terms, or won’t pay by the deadline. This article explains California’s main enforcement routes, what evidence courts require, and practical steps attorneys use to convert a deal into an enforceable judgment.

Why mediated settlements become hard to enforce

Mediation is designed to end litigation with a negotiated agreement, but enforcement can become contentious when a party later claims they never agreed, refuses to sign a more formal document, or simply doesn’t pay. In California, the question is usually not whether settlement is “fair,” but whether you can prove a complete, enforceable agreement and use the correct procedural vehicle to turn it into a judgment.

Two practical realities drive most disputes:

(1) Many mediations end with a short “term sheet” that the parties intend to memorialize later, which can create ambiguity over whether a final deal was reached.

(2) Mediation confidentiality (Evidence Code sections 1115–1128) can limit what communications may be used in court, making it critical that the settlement itself is documented in a way that is admissible and enforceable.

The main enforcement tool: Code of Civil Procedure section 664.6

California’s primary fast-track mechanism to enforce a settlement in a pending case is Code of Civil Procedure section 664.6. When it applies, the court may enter judgment pursuant to the settlement terms on noticed motion (or, in some situations, on ex parte application if appropriate).

When CCP 664.6 is available

Section 664.6 is typically available where:

• There is a pending civil action (or the court retained jurisdiction after dismissal in the manner permitted by statute and case law).

• The parties stipulated in writing or orally before the court to settlement terms.

• The settlement’s material terms are sufficiently definite for the court to enter judgment and enforce.

The signature requirement—and why it matters

For most written settlements enforced under CCP 664.6, the safer practice is to ensure the agreement is signed by the parties themselves (not only their attorneys). California courts often scrutinize whether the “parties” personally agreed in the manner the statute requires. If only counsel signed, enforcement may be contested unless another basis exists (for example, an oral stipulation on the record, or other facts meeting statutory requirements).

What the court can do under 664.6

If the statute applies, the court can:

• Enter judgment consistent with the settlement terms;

• Retain jurisdiction to enforce performance (where procedurally proper); and

• Resolve disputes about terms to the extent needed to enforce a complete agreement (but not to create new terms the parties never agreed to).

Step-by-step: enforcing a mediated settlement when the other side refuses to sign or pay

Step 1: Identify what you actually have (term sheet vs. final settlement)

Start by auditing the mediation paperwork and communications:

• Is there a written settlement agreement signed by both parties? If yes, 664.6 is often the cleanest route.

• Is there only a memorandum of understanding (MOU) or term sheet? You must evaluate whether it contains all material terms and whether it states it is intended to be binding immediately.

• Does it require execution of a “more formal agreement” later? That language can invite an argument that the parties did not intend to be bound yet, depending on the full text and circumstances.

Step 2: Confirm enforceability in light of mediation confidentiality

California’s mediation confidentiality rules can be outcome-determinative. Evidence Code section 1119 generally makes mediation communications inadmissible, and courts apply these rules strictly. Practically, that means:

• You should rely on the written settlement document itself (and any admissible attachments) rather than mediator emails, caucus statements, or “what was said in the room.”

• If the settlement was reached in mediation, ensure the writing is structured to be admissible and enforceable (for example, a signed writing reflecting the agreement, not just a mediator’s recap).

If you anticipate enforcement litigation, evaluate early whether you have an admissible agreement, because the best “proof” may be excluded if it is a protected mediation communication.

Step 3: Decide the right procedural path

The enforcement route depends on posture and documentation:

A. File a motion to enter judgment under CCP 664.6

This is usually the first choice when the settlement meets statutory requirements. Your moving papers should typically include:

• The signed settlement agreement (or transcript/record of oral stipulation before the court);

• A declaration authenticating the document and explaining the breach (non-payment, refusal to execute releases, failure to dismiss, etc.);

• A proposed judgment that tracks settlement terms precisely; and

• A request for fees/costs/interest if the agreement provides for them or if another legal basis applies.

B. If 664.6 is unavailable, sue for breach of contract (or amend existing pleadings)

Where the settlement does not satisfy 664.6’s requirements, parties may still enforce it as a contract—often through:

• A new civil action for breach of settlement agreement (and related claims, where appropriate); or

• A motion to amend/bring claims in the existing case, depending on procedural posture and court discretion.

This route is slower and more expensive than 664.6, but it can be essential when the settlement was not properly documented.

C. If the case was dismissed, confirm whether the court retained jurisdiction

Enforcement after dismissal is a common trap. If the case was dismissed without proper retention of jurisdiction, you may need to refile an action or pursue other procedural remedies. Counsel should review dismissal paperwork, any “retain jurisdiction” language, and whether the settlement contemplates continued court power to enforce.

Step 4: Address the “refuses to sign” problem

Sometimes the parties sign an MOU at mediation but agree to execute a longer-form agreement later (with releases, confidentiality, non-disparagement, lien provisions, dismissal language, etc.). One party then refuses to sign the later document and claims no deal exists.

In these disputes, courts focus on whether the mediation document contains all material terms and shows the parties’ intent to be bound. Practical strategies include:

• Pointing to integration/intent language in the MOU (e.g., “binding and enforceable” upon signature);

• Showing the “later” agreement was intended to be ministerial (standard releases), not a reopening of core terms; and

• Requesting entry of judgment under 664.6 based on the signed MOU, or pursuing contract enforcement if 664.6 cannot be used.

Example: The parties sign a mediation MOU stating defendant will pay $150,000 within 30 days in exchange for a dismissal with prejudice and mutual releases, and that the MOU is “binding and admissible for enforcement.” Defendant later demands a new confidentiality clause and refuses to sign. If the MOU already contains the essential terms, plaintiff may seek to enforce the MOU itself rather than negotiate new language.

Step 5: Address the “refuses to pay” problem

Non-payment is the most straightforward breach. Common enforcement provisions include:

• Stipulated judgment for a higher amount upon default (subject to enforceability limits);

• Acceleration clauses for installment plans;

• Interest provisions (pre- and post-judgment); and

• Attorneys’ fees clauses for enforcement.

Example: A settlement requires payment of $75,000 by May 1 and dismissal within 10 days after clearance of funds. If payment does not arrive, a 664.6 motion can request entry of judgment for $75,000 plus any agreed interest and fees, supported by a declaration attaching the settlement and describing the missed deadline.

What terms must be “clear enough” to enforce?

Courts can enforce settlements that are complete and definite, but they generally will not supply missing essential terms. Terms that frequently cause trouble include:

• Release scope (who is released, what claims, unknown claims, Civil Code section 1542 waiver);

• Payment mechanics (deadline, method, payee, tax reporting, allocation, indemnities);

• Dismissal timing and conditions (on receipt of funds vs. immediately);

• Confidentiality/non-disparagement (exceptions, liquidated damages concerns);

• Liens (medical, workers’ comp, Medicare/MSP issues); and

• Attorneys’ fees for enforcement (who pays, prevailing party standard).

A well-drafted mediation settlement anticipates enforcement by spelling out these terms in the signed document, not in later drafts.