It is an alternative to going to trial, and is particularly useful if the parties to the dispute want to carry on a relationship in the future. An impartial person, called a mediator, assists the parties in identifying common goals and interests. With the identification of common interests or concerns, the parties can begin to find areas in which they can come together. Agreement on small issues often leads to agreement on larger issues. The mediators are present only to help the parties communicate their ideas, and to offer options which will minimize the possibility of future disputes.
Mediation is appropriate when both parties agree to use the process to resolve their differences.
A good example are parents who are divorcing and who want to discuss a parenting plan for their children. Mediation is not appropriate when there is a significant imbalance of power between the parties. This imbalance can be caused by one party having significantly more money or resources than the other, or when recent abuse has occurred in the relationship. Almost any sort of dispute can be mediated, if both parties agree to discuss the issues. In recent years, major corporations and insurance companies have begun to use mediation as an alternative resolution process in all kinds of cases.