One of the underlying philosophies of mediation is that the parties can reach an agreement that does not necessarily conform with legal precedent, or with community standards but is one which resolves the problem to the satisfaction of the parties. Any agreement reached as a result of the mediation session is written down by the parties' lawyers and signed by each side. The terms of the agreement may be retained in contract form or, if there are court proceedings, the lawyers will obtain the appropriate court order. It is informal and, if successful, provides a cheaper and quicker means of settling a dispute. Statistics show that more than 90 per cent of cases are settled before they reach court.
Mediation can enable settlement to occur even earlier.
Early settlement reduces the stress inevitably involved in court proceedings particularly where a party may have to give evidence. Early settlement also reduces legal and other costs such as those involved if parties have to take time off work or from business. Mediation can help the relationship between parties to survive their dispute because it allows them to formulate their own mutually acceptable solutions. Even if parties do not settle their dispute, they do clarify and narrow the issues at the mediation thereby reducing the time and expense of the hearing. At the very least, parties who have been through a mediation will have had an opportunity to discuss and clarify the disputed issues.