Key points
- Court-annexed mediation is a confidential settlement meeting linked to a case already in court.
- In Kuala Lumpur, it takes place at the KLCMC in the Kuala Lumpur Courts Complex under Practice Direction No. 2 of 2022.
- Settlement is voluntary, but you should attend when the court directs mediation.
- The mediating judge is generally not the trial judge.
- A settlement can be recorded as an enforceable consent judgment.
Many civil cases filed in Kuala Lumpur never reach a full trial. Some settle through court-annexed mediation, a process run within the court system. If your lawyer tells you the court has fixed a mediation date, here is what to expect.
What is court-annexed mediation?
Mediation is a structured negotiation with a neutral third person, the mediator, who helps the parties discuss the dispute and explore settlement. The mediator does not decide who is right and cannot force anyone to agree.
"Court-annexed" means the mediation is linked to a case already in court. The judiciary's official portal lists court-annexed mediation centres around the country, including the Kuala Lumpur Court-Annexed Mediation Centre (KLCMC) in the Kuala Lumpur Courts Complex, Jalan Duta. The current practice direction on mediation, according to the Kuala Lumpur Courts portal, is Practice Direction No. 2 of 2022; the earlier practice directions (including No. 4 of 2016) were revoked on 1 April 2022.
Do I have to attend?
Settlement is always voluntary. But when a judge or registrar, usually at case management, directs the parties to attempt mediation, you should treat the date like any other court date. Not turning up, or turning up unprepared, wastes time and can be taken into account by the court when it manages the case.
In practice, the parties themselves (not only their lawyers) are expected to attend, because they are the ones who can agree to terms. For a company, the person attending should have authority to settle. Ask your lawyer whether the session will be in person or online.
Who is the mediator?
The mediator in court-annexed mediation is usually a judge or court officer trained in mediation. Generally, the judge who mediates is not the judge who will try the case, so that anything discussed does not influence the trial. Your lawyer can confirm the arrangement for your case.
Parties can also agree to mediate privately outside the court centre, for example with a mediator from a recognised mediation body. The court can be told and give directions accordingly.
What happens on the day?
A typical session runs like this:
- Opening: the mediator explains the process and the ground rules, including confidentiality.
- Joint session: each side, often through its lawyer, briefly outlines its position.
- Private sessions: the mediator meets each side separately to explore interests, risks and possible terms. What you say privately is not passed on unless you agree.
- Negotiation: offers and counter-offers are exchanged, usually through the mediator.
- Outcome: either a settlement is reached and written down, or the case goes back to the trial track.
Sessions can take a few hours. Some cases need more than one session.
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Is what I say confidential?
Mediation is confidential. Generally, statements and offers made during mediation cannot be used as evidence at trial if the case does not settle. Do not record the session, and do not post about it. Documents that already exist (such as contracts or medical records) do not become secret just because they were shown at mediation.
What happens if we settle?
The terms are written down and signed. The settlement can then be recorded before the court as a consent judgment or consent order, which can be enforced like any other judgment if a party does not comply. Read the terms carefully before you sign: who pays what, by when, whether the case is withdrawn, and what happens to costs.
If there is no settlement, the case continues to trial. Nothing is lost by trying, and you may still settle later.
What should I prepare?
- A short summary of the facts and the key documents, prepared with your lawyer.
- A realistic view of the strengths and weaknesses of your case, including the time and stress of a trial.
- Your priorities: payment, an apology, a timeline, confidentiality, or ending a relationship.
- The range of terms you could accept, discussed privately with your lawyer beforehand.
- Authority to settle if you are attending for a company.
- Time: keep the whole day free.
Common mistakes
- Treating mediation as a formality and arriving with no authority or flexibility.
- Arguing to come out on top instead of exploring settlement.
- Sending someone without authority on behalf of a company.
- Signing terms you do not understand, especially on payment dates and costs.
- Discussing the mediation with others or on social media.
Example
Madam Rao sued a renovation company in the Sessions Court in Kuala Lumpur for defective work. At case management, the court directed mediation at KLCMC. She attended with her lawyer and the company's director attended with its counsel. After private sessions, the company agreed to pay an agreed sum in two instalments. The terms were recorded as a consent judgment, so she could enforce it if payment was missed.
When to speak to a lawyer
Speak to a lawyer before the mediation date to prepare your position and settlement range, and before signing any settlement terms. If you do not yet have a lawyer and the court has directed mediation, get advice promptly. Contact us; every case depends on its facts.
Frequently asked questions
Can the mediator decide my case?
No. The mediator helps the parties talk. Only a judge at trial decides the case if it does not settle.
Can I bring a family member?
Ask your lawyer and the mediator first. Others may attend only with agreement, and everyone must keep the mediation confidential.
What if the other side refuses to mediate?
Mediation cannot force agreement. The case will continue. Your lawyer can raise the issue at case management.
Does settling mean I admit I was wrong?
Not necessarily. Settlement terms can state that there is no admission of liability.
Is court-annexed mediation available in the lower courts?
The judiciary's mediation framework covers the High Court and the subordinate courts. Your lawyer can confirm whether mediation is suitable in your court and case.
Sources & fact check
Legal points in this article were checked against the primary sources below. The law can change; this is general information, not legal advice.
- Kuala Lumpur Courts portal: Practice Directions regarding mediation (Practice Direction No. 2 of 2022 in force)
- Office of the Chief Registrar: list of Court-Annexed Mediation Centres (including KLCMC, Kuala Lumpur Courts Complex)
- Kuala Lumpur Courts official portal (Kuala Lumpur Courts Complex, Jalan Duta)
- Rules of Court 2012 (P.U.(A) 205/2012), text published by the Malaysian Bar, including Orders 12, 13, 18, 19 and 93
- Office of the Chief Registrar, Federal Court of Malaysia (Judiciary portal)
Fact-checked on 17 Oct 2026
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Related practice area: Civil litigation and debt recovery

