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Mediation is an entirely voluntary, no-risk process in which a neutral person helps the parties involved in a dispute negotiate their own settlement. The mediator encourages communication, assists in the identification of areas of disagreement, as well as agreement, and then works to bring the parties to a resolution.
The strength of mediation is that it can be a natural extension of negotiations already attempted but that have broken down- negotiations that the disputing parties now agree to resume in a structured setting. These structured negotiations are particularly effective in settling differences that arise between people who have ongoing business relationships or who want assurance that the agreements reached will be effectively carried out. Why? Because the parties, assisted by the mediator, craft their own settlement agreement.
Mediation can be useful not only when negotiations to settle have come to a standstill - but also at any stage of a litigation or arbitration process.
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