The mediator acts as a facilitator, guiding the parties in identifying issues, engaging in joint problem-solving, and exploring creative settlement alternatives. Although the process is voluntary and nonbinding, it results in a strikingly high settlement rate. There are a variety of reasons to select mediation , rather than litigation or arbitration, and it has become increasingly common for courts to order parties to mediate in cases in which they have not engaged in settlement negotiations prior to trial. Parties are generally more satisfied with a mediated resolution, rather than one imposed upon them such as happens with a court judgment, because the parties created the solution themselves. In recent years, the use of binding mediation has developed as an alternative to arbitration and incorporates the negotation aspects of mediation with the certainty of an outcome.
Mediation is also much less costly than protracted litigation or arbitration.
The use of binding and non-binding mediation has increased greatly in both the private and public sectors, particularly for legal and business disputes. Many companies have chosen to insert mediation clauses into standard contracts as a preliminary dispute resolution step before arbitration or litigation. United States Arbitration and Mediation is a leader in providing innovative uses of mediation to resolve disputes throughout the country.