There are pros and cons to each approach. These alternatives to litigation also enable the parties to control the process and adapt them, by agreement, to meet their particular goals. Resolution is accomplished by the parties rather than imposed by an adjudicator. Where there is a continuing relationship, whether business or personal, this scenario is much preferable to an adversarial process. Negotiation and mediation are the most efficient and least costly of the dispute resolution options.
Negotiation is often a parallel process with litigation or arbitration.
It should involve few people who have clear instructions on objectives and authority to settle. The flexibility often enables pending litigation to be converted into a good business opportunity, although a poor approach may sour a relationship already stressed by the dispute. Despite the apparent simplicity of negotiations, they require careful thought and planning to create the most likelihood of success, and to avoid unsuccessful negotiations creating an even greater level of hostility. Mediation is essentially negotiation with a facilitator, and there are a great variety of styles and approaches depending upon the mediators selected. Many mediations arising out of a legal dispute are conducted on the basis of predicted legal outcome.