Every litigant knows the benefits to mediation as a dispute resolution tool. Mediation is much less costly than litigation, more private (mediations can be kept confidential as part of the terms of the settlement agreement), and can result in a solution that is more flexible than merely winning or losing a case. It permits the parties to explore more options, modify their positions, and discuss creative and flexible resolutions that might not be practical or even available in a litigated setting.
However, there are some additional benefits of mediation that may be less apparent to the parties:
First, mediation allows the parties to openly discuss their dispute with an experienced neutral who can provide an unbiased, impartial viewpoint. The mediator can give a good “read” or evaluation that is unvarnished, and can provide insight and input that helps a party better understand their strengths and weaknesses. While a mediator’s views may not be as beneficial or insightful as a full blown mock trial, it is certainly less expensive, and requires a lot less advance work.
Second, mediation has a psychological benefit for both parties. Successful mediations resulting in a negotiated agreement that addresses each party’s needs are much more likely to preserve the parties’ relationship. Settling business or workplace disputes can be difficult, but a trial battle with the added stress of the court system can make it even worse. In this sense, mediation can be therapeutic and effective in the long-term, encouraging continued communication between the parties.
Finally, mediation provides a foundation for future problem-solving between the parties. After a successful mediation, if a subsequent dispute does occur, the parties are more likely to utilize a cooperative problem-solving approach to resolve their differences. They are more likely to avoid litigation and/or an adversarial approach – and will often return to the same mediator, who is familiar with the parties and the dispute, and can quickly find a resolution that works for all parties.
