Short answer

If mediation does not produce a settlement, you usually still need to go back to court unless the parties later reach an agreement. In Michigan, mediation is a dispute-resolution tool — not a replacement for the court system. When mediation fails, the case proceeds to the next court step: scheduling hearings, completing discovery, and ultimately trial. The judge will decide the unresolved issues, which in partition cases can include dividing property in kind or ordering a sale and dividing net proceeds.

How this plays out (simple hypothetical)

Hypothetical: Three siblings inherit a family home through probate. Two siblings want to sell; the third wants to keep the house. The probate or civil court orders mediation. The mediator helps the parties identify options (one sibling buys out the others, split sale, co-ownership rules), but no agreement is reached. The mediator issues a report to the court if required. The court then proceeds with scheduled hearings or trial. At trial, the court can order partition in kind, a partition sale with distribution of proceeds, or other equitable relief.

Why mediation can fail

• Major differences in valuation expectations or inability to agree on a buyout price.
• One party wants to keep the property while others prefer cash.
• Hidden liens, taxes, or liabilities change the bargaining posture.
• Emotional conflicts or distrust among heirs impede compromise.

What the court can do after failed mediation

If mediation fails, courts typically resume the adversary process. Possible outcomes include:

• Continue litigation toward trial: The court will set deadlines for discovery, motion practice, and a trial date.
• Interim or emergency orders: The court may issue temporary orders addressing possession, maintenance, or securing assets while the case proceeds.
• Partition remedies (common in co-ownership disputes): The court may order physical division of property (partition in kind) or direct a sale with proceeds divided among owners if division in kind is impracticable.
• Equitable relief: The court may order buyouts, accounting for rents, mortgage payments, taxes, or compensation for improvements.
• Costs and fees: The court may allocate costs, attorney fees, and sale expenses according to law and equities among the parties.

For general Michigan court information, see the Michigan Courts website: https://courts.michigan.gov/. For legislation and statutes, see the Michigan Legislature: https://www.legislature.mi.gov/.

How probate vs. partition cases differ after mediation

Probate matters: If the dispute arose in probate (questions about distribution, executor duties, or whether an asset is estate property), the probate court will continue to resolve those issues. The court may hold evidentiary hearings about executor conduct, inventory items, creditor claims, or beneficiary rights.

Partition matters: Partition actions (disputes among co-owners of real property) often proceed in circuit or district court depending on the case. After failed mediation, the court applies equitable remedies focused on dividing or selling the property and allocating proceeds.

Practical steps to take if mediation fails

1. Ask your attorney for the mediator’s report and the court’s next deadlines. If mediation was court-ordered, the court docket will show the next dates.
2. Preserve evidence: Gather deeds, wills, trust documents, mortgage statements, tax bills, insurance, repair invoices, and any communications relevant to ownership or value.
3. Obtain a professional valuation or appraisal before trial if property value is disputed.
4. Consider targeted follow-up negotiations: Sometimes a focused written proposal or a second mediation session after new appraisal figures can settle the case without trial.
5. Prepare for trial: Work with counsel on discovery (interrogatories, document requests, depositions), pretrial motions, witness lists, and trial exhibits.
6. Budget for costs: Trials are more expensive than mediation. Factor in attorney fees, expert fees, appraisal costs, and court costs.

When a second mediation or settlement conference may be ordered

Courts often encourage a second mediation or settlement conference, especially where new information (an appraisal or tax issue) surfaces. Judges may order renewed ADR (alternative dispute resolution) if they believe it could save time and court resources.

Helpful hints

• Document everything: Maintain a paper trail for repairs, payments, and communications about the property or estate.
• Get a current appraisal: Accurate value data strengthens negotiation positions and influences buyout offers or sale decisions.
• Understand your role: In probate, determine if you are an executor, administrator, beneficiary, or creditor; each role has different rights and duties.
• Consider temporary arrangements: Short-term written agreements can settle possession or maintenance while litigation continues.
• Ask about mediation confidentiality: Many mediation communications are confidential and cannot be used at trial, but check with counsel about Michigan rules and court orders affecting confidentiality in your case.
• Talk to a probate or real property attorney early: An attorney can explain court procedures, settlement leverage, likely outcomes, and whether alternative approaches (e.g., buyout, sale, or partition) make sense in your case.
• Prepare for taxes and liens: Sales can trigger capital gains, and liens or unpaid taxes reduce net proceeds—factor these into settlement discussions.