Just as arbitration is less formal than litigation, mediation is less formal still. There are rarely pre-mediation pleadings or discovery, although experienced practioners will use mediation statements as a method to familiarize the mediator with the facts and legal theories. Mediation sessions generally do not entail a hearing, witnesses, or the presentation of evidence. Moreover, mediation sessions are private and there are no court reporters or other recordings. The mediator does not issue an opinion or make an award. Accordingly, there is no written decision at the close of a mediation regardless of whether a settlement has been reached. The results of the mediation, as well as all statements, settlement offers, and other discussions that occur during the mediation sessions, are completely confidential and inadmissible in any subsequent arbitration or courtroom litigation.

 

In addition to the procedural informality of mediation, the objectives of mediation differ significantly from those of arbitration or litigation. Mediation is primarily designed to resolve disputes in the most expeditious and cost-effective manner. It also improves the possibility of preserving an ongoing relationship between the parties. In contrast, arbitration and litigation are designed to pass judgment, assign fault, and assess damage. Because of mediation’s informal structure and interest in settlement, it enables the parties to concentrate on their primary goals rather than focus on the dispute itself. It also allows for greater flexibility and creativity in structuring settlement between the parties.