Definition
A structured process where a neutral mediator helps you reach a voluntary agreement on disputes without going to court. Mediation is faster and more private than litigation.
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In mediation, both parties meet with the mediator, who helps identify the issues, understand each party's interests, and explore settlement options. The mediator does not impose a decision but facilitates agreement. Mediation is typically less expensive than litigation and can preserve relationships. Many purchase contracts include mediation clauses requiring it before proceeding to arbitration or court.
Pro Tip
Try mediation before litigation. It often resolves disputes at a fraction of litigation cost.
Example
A dispute arises over whether a cracked foundation was pre-existing or caused by the seller's negligence; the parties agree to mediation where a neutral mediator helps them reach a settlement agreement for the buyer to accept $30,000 in credit.