What is Mediation?
What Does a Mediator Do?
Mediation is different from arbitration because the neutral mediator, unlike an arbitrator, does not have the authority to make a binding decision about the dispute.
Instead, the mediator works to bring the parties together to reach a resolution. He or she does this by defining issues and acting as an unbiased intermediary, all the while moderating and steering the parties away from argument and confrontation.
The mediator will, however, seek concessions from each side during the mediation process in the hopes that doing so will lead to a mutually beneficial settlement agreement to resolve their business disputes whether it be based on allegations of breach of contract, fraud or tortious interference or to resolve a contentious business divorce.
Key Characteristics of Mediation
Mediation is voluntary and consensual (unless it is court-ordered as part of an ongoing lawsuit).
- The parties select the mediator(s)
- Mediation is a confidential procedure
- Mediator is independent and, impartial
- The mediator does not decide the dispute for the parties, but rather encourages them to agree to a settlement.
- Parties can stop participating in mediation at any time if they do not believe a reasonable settlement is achievable