(a) A court may, on its own motion or the motion of a party, refer a pending dispute for resolution by an alternative dispute resolution procedure including:
(1) an alternative dispute resolution system established under Chapter 26, Acts of the 68th Legislature, Regular Session, 1983 (Article 2372aa, Vernon’s Texas Civil Statutes);
(2) a dispute resolution organization; or
(3) a nonjudicial and informally conducted forum for the voluntary settlement of citizens’ disputes through the intervention of an impartial third party, including those alternative dispute resolution procedures described under this subchapter.
(b) The court shall confer with the parties in the determination of the most appropriate alternative dispute resolution procedure.

Terms Used In Texas Civil Practice and Remedies Code 154.021

  • Settlement: Parties to a lawsuit resolve their difference without having a trial. Settlements often involve the payment of compensation by one party in satisfaction of the other party's claims.

(c) Except as provided by agreement of the parties, a court may not order mediation in an action that is subject to the Federal Arbitration Act (9 U.S.C. Sections 1-16).