It is not incompatible with an arbitration agreement for an arbitral tribunal to encourage settlement of the dispute and, with the agreement of the parties, the arbitral tribunal may use mediation, conciliation, or other procedures at any time during the arbitral proceedings to encourage settlement.
§ 1297.301.Generally
Title 9.3. Arbitration and Conciliation of International Commercial Disputes · Chapter 6. Making of Arbitral Award and Termination of Proceedings · Article 3. Settlement · Enacted 1988 · no amendments on record · Last verified July 29, 2026
In one sentenceSection 1297.301 confirms that an arbitral tribunal encouraging the parties to settle is consistent with the arbitration agreement, and lets the tribunal, with the parties' agreement, use mediation, conciliation, or other procedures at any point to promote settlement.
Full Text of § 1297.301
Plain-English Summary
Arbitration and settlement aren't rivals, and this section says so directly. It is not incompatible with an arbitration agreement for the arbitral tribunal to encourage settlement of the dispute, clearing away any doubt that a tribunal actively promoting a negotiated resolution somehow oversteps its role.
The tribunal can go further than mere encouragement, too, if the parties agree. With that agreement, the tribunal may use mediation, conciliation, or other procedures at any time during the arbitral proceedings to encourage settlement. That flexibility lets a single tribunal wear more than one hat when the parties want it to, shifting toward a facilitative role at any stage of the case if doing so might resolve the dispute without a full arbitral award.
Frequently Asked Questions
Can an arbitral tribunal try to help the parties settle their dispute?
Yes. Section 1297.301 states that encouraging settlement is not incompatible with an arbitration agreement.
Can the tribunal itself mediate the dispute?
Yes, if the parties agree. With the parties' agreement, the tribunal may use mediation, conciliation, or other procedures at any time to encourage settlement.
What happens if the parties do reach a settlement during the arbitration?
Section 1297.302 requires the tribunal to terminate the proceedings and, if the parties ask and the tribunal doesn't object, to record the settlement as an arbitral award on agreed terms.
Amendment History
Added by Stats. 1988, Ch. 23, Sec. 1. Effective March 7, 1988.
Source & verification. Section text is reproduced verbatim from
the Deering's California Codes Annotated / vLex. Enacted by the California Legislature.
Last verified July 29, 2026.
· Official source
Also known as: arbitrator encourages settlement californiamediation during arbitration proceedings