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D.  WHAT YOU SHOULD KNOW ABOUT MEDIATION

In mediation, both parties voluntarily agree to submit their dispute to a neutral third party in the attempt to settle differences without the expense of litigation. (The parties typically split the cost of administration and a mediator, who is paid either hourly or per day.)

Mediation differs from arbitration and formal litigation in one significant respect: Usually the mediator's decision is not final and binding. Indeed, mediators typically do not render a decision; rather, they take the parties down the path to resolving their own dispute. Thus, the parties are free to stop mediation at any time and litigate. Finally, since no one can be forced to use mediation, the procedure will not be effective unless both parties see the advantages of proceeding. Parties usually are not represented by lawyers and do not call witnesses. However, they may bring documents for the mediator to review.

To learn more about mediation or to use this process to resolve a consumer problem, contact your local bar association or nearest American Arbitration Association (AAA) regional office for details. The AAA and private companies in many states have instituted mediation procedures and rules, trained lawyers and volunteers to serve as mediators, and established excellent facilities for a small fee.

You should know the difference between conciliation and mediation. Typically, the third-party conciliator does not meet with both parties at the same time. Rather, he or she speaks to them separately, usually by telephone or mail. Some dispute resolution agencies provide a combination conciliation-mediation service in which the dispute is first handled through conciliation and then, if still unresolved, proceeds to a face-to-face mediation. Typically the conciliator does not spend a great deal of time on the matter. If after a few phone calls the conciliator feels progress can be obtained, a recommendation may be made to bring both parties together in the attempt to resolve the matter amicably. Conciliation is used frequently by public and private agencies, and most conciliators do not charge a fee.

Many courts are now offering litigants the chance to proceed with mediation and arbitration with trial still available if this "MED-ARB" process fails or is rejected by the parties. While mediation is typically much cheaper and less formal than litigation and the parties are always free to reject the recommendation of the mediator, the outcome of mediation is harder to predict than that of litigation. Also, a party with a strong case may receive less in a compromise than he or she would have obtained in court. Thus, consider your options carefully before agreeing to mediation, arbitration, or litigation.