What is "mediation" in dispute resolution?

Mediation is specifically characterized as a process in which a neutral third party assists the disputing parties in reaching a voluntary agreement. This collaborative approach differs from formal court proceedings, where the resolution is imposed by a judge, or binding arbitration, where an arbitrator makes a decision that is typically final and enforceable. In mediation, the mediator does not make decisions for the parties but facilitates communication, encourages negotiation, and helps clarify any misunderstandings. This empowers the parties to arrive at a mutually satisfying resolution on their terms. The voluntary nature of mediation is a key feature, as it relies on the cooperative willingness of both parties to find common ground without the pressure of adversarial proceedings.