The benefits of successfully mediating a dispute to settlement vary, depending on needs and interests of the parties. The most common advantages follow. Parties are directly engaged in negotiating the settlement. The mediator, as a neutral third party, can view the dispute objectively and can assist the parties in exploring alternatives that they might not have considered on their own. Because mediation can be scheduled early in the dispute, a settlement can be reached much more quickly than in litigations.
Parties generally save money through reduced legal costs and less staff time.
Parties enhance the possibility of continuing their business relationship with each other. Creative solutions or accommodations to special needs of the parties can become a part of the settlement. The parties might wish to attempt mediation before submitting their dispute to arbitration. This can be accomplished by making a provision for mediation in the engagement letter or contractual document. To be most effective, the mediation clause may specify the AAA's Mediation Rules.