When you make a claim, the process can end in an informal settlement or become a formal lawsuit. Your case will most likely have an informal settlement. The mediation occurs outside of court, and you do not have to go to trial.
In this situation, both parties can reach an agreement and consent to forgo further legal action. Informal settlements are ideal when you need to get the money as soon as possible. They make the lawsuit process faster and are cost-effective.
However, your case could end up becoming a formal lawsuit instead. A formal lawsuit is when you file a formal complaint in a civil court of law. Then, the judge hears both sides in a trial and makes the final verdict.
Your case could take longer if it goes to trial, but you have the potential to get more money in compensation. Only a small percentage of cases go to trial. The outcome of a lawsuit is less predictable than an informal settlement.