Space Coast Ordered to Mediation in CDO Case
In a $100 million lawsuit from Space Coast Credit Union against several Wall Street banks and credit rating agencies, a federal judge has ordered the parties to get together at a nonbinding mediation session.
The $3 billion Space Coast and the five banks and two rating agencies must agree to a confidential mediation session within 14 days. If an agreement is not met the clerk of the court will appoint a mediator, according to U.S. Magistrate Judge Barry S. Seltzer in the U.S. District Court for the Southern District of Florida.
What typically happens in mediation varies based on the details of the case, attorneys say. However, the discussions are almost always confidential and privileged unless there are certain exceptions such as when the mediation is required by law to be open to the public or if the mediation was intentionally used to plan or attempt to conceal a crime.
According to John Hachmeister, an attorney with Mediate.com, mediation is often used as a tool to settle a dispute and can potentially save in costs and fees if the case were to go to trial.