The Supreme Court rendered the 104-Tai-Shang-222 Civil Decision of February 5, 2015 (hereinafter, the "Decision"), holding that in the event of a mediation conducted by a township, village or municipal mediation committee and approved by a court, even if a declaratory judgment is sought to invalidate the mediation, the parties should still be bound by the mediation before a successful final judgment is obtained.
According to the facts underlying the Decision, the Appellee asserted that she is the Appellant's mother and filed a complaint to demand that the Appellant return the property at issue in 2006. The parties first signed a settlement agreement on their own before applying to the Mediation Committee of Taoyuan City for a mediation (hereinafter, the "Mediation"). Pursuant to the Mediation, both parties agreed to rescind the purchase agreement on the property at issue, and the Appellant was obligated to pay for registration of the ownership transfer of the property. Later, the Appellant refused to perform such agreement. A judgment was sought to compel the Appellant to register the ownership transfer of the property at issue according to the legal relations of the Mediation. The Appellant contended that since the Mediation had been approved by the court, it had the same effect as a final judgment and the Appellee's lawsuit against this matter covered by the Mediation between the parties as approved by the court was obviously illegal.
According to the Decision, after a mediation has been established between the parties in the township, village or municipal mediation committee and has been approved by a court, if grounds for the invalidity of the mediation are determined, remedies may be obtained only by seeking a declaratory judgment from the court which originally approved the mediation to invalidate the mediation in accordance with Article 29, Paragraph 1 of the Township, Village, Municipal Mediation Statute. Before a successfully final judgment is obtained, it is difficult to assert that such mediation does not have the same effect as a final judgment. Therefore, the parties should still be bound by such mediation.
It was further pointed out in the Decision that since the Mediation for this matter was successful, whether this is not the same matter still requires further consideration. Thus, the original decision was reversed and remanded.