In mediation, a third-party mediator who is neutral assists the parties to reach a negotiated settlement of their differences. The mediator uses a variety of techniques to help them come to agreement, but he or she is not empowered to decide the case. Both arbitration and mediation are typically private, so they have the added benefit of helping the parties avoid publicity. In at least 28 states, court-annexed arbitration or mediation is automatic for many cases, for example, those under a certain dollar amount. Even though these cases must initially be sent to arbitration or mediation, sometimes the losing party in arbitration or mediation may appeal, which sends the case back into the court system.
Judges also use pre-trial conferences to encourage settling cases.
At the conference, the judge and the lawyers can review the evidence and clarify the issues in dispute. If a case hasn't been settled, many courts set a time for an issue conference . The lawyers usually appear at this hearing before a judge without their clients and try to agree on undisputed facts or points of law. Such agreements are called stipulations . The issue conference can shorten the actual trial time by determining points that don't need to be proved during the trial.