What is the definition of mediation?

Mediation is a private process where a neutral third person called a mediator helps the parties discuss and try to resolve the dispute. The parties have the opportunity to describe the issues, discuss their interests, understandings, and feelings; provide each other with information and explore ideas for the resolution of the dispute. While courts can mandate that certain cases go to mediation, the process remains “voluntary” in that the parties are not required to come to agreement. The mediator does not have the power to make a decision for the parties, but can help the parties find a resolution that is mutually acceptable. The only people who can resolve the dispute in mediation are the parties themselves. There are a number of different ways that a mediation can proceed.

Mediation is a settlement conference held prior to trial. Both parties, along with their legal representatives, appear before a mediator, who is usually a former judge or lawyer, or an expert in the securities field. The mediator’s responsibility is to listen to both sides of the dispute and try to reconcile the conflict between the two parties. Mediation is non-binding and all information disclosed during the mediation process is confidential.

Mediation is often mistaken for arbitration. Arbitration involves the engagement of a third party arbitrator, similar to a judge or jury, who decides the outcome for the involved parties. Arbitration is either mandated by contract or, in less common cases, ordered by the court. In contrast, mediation is the most commonly court-ordered method of alternative dispute resolution (though it can also be required by the parties’ agreement). A mediator is chosen, whose main focus is to facilitate a resolution that is agreeable to both parties (or sometimes, disagreeable). The mediator has no authority or power to make any decisions or determinations in the dispute – their role is solely to assist the parties in finding a solution.

Mediation is when a neutral third party helps the parties’ own private resolution of the dispute. The third party does not make any decisions; instead, they simply facilitate. The advantages of mediation are numerous, including the fact that it is much less expensive than going to trial, the process is completely confidential, but most importantly, both sides get to negotiate a deal that they want rather than having the outcome determined by a third party.