When there is a dispute that causes a lawsuit, it can be costly for both parties. Many people can’t afford to bring a lawsuit at all because of the high cost of lawyer fees. In these cases, mediation is often recommended to keep the costs as low as possible. Mediation is a way of having someone judge the outcome of the dispute without the use of attorneys and the court.
When people engage in mediation to solve their dispute, each party will sign a paper saying that they will agree to be bound by the mediation results. The mediator will then hear both sides of the dispute and decide on an outcome for the case. This is not only much less expensive than getting lawyers and going to court, but it generally takes much less time than getting on a court docket and making a case there.
Many companies require that you agree to mediation if there is a dispute between you. This is often covered in the terms and conditions part of terms of service contracts. This is meant to save the company a lot of money, but it saves money for both parties.