Benefits and Downside of Mediation. Benefits   Downside Consensual: Parties agree to seek business solutions assisted by their advisers and the mediator. Business relationships can be better preserved in constructive negotiations rather than in adversarial battles: Interests are pursued rather than positions defended.   Creating an impression of weakness. Can be overcome possibly by engaging one of the mediation promoting bodies to set it up. Quicker resolution: Days or weeks, rather than months or years. In circumstances where an injunction may be needed, any delay will damage the ability to obtain that remedy. Additionally, where there are limitation-type clauses in a contract to worry about, then a specific extension of time needs to be incorporated in the Mediation Agreement.   Lower costs:  The procedure is not a lengthy one because emphasis is on key issues, not on exploring every corner to substantiate the case or to meet the other side's evidence before a Judge.   If there is no settlement, you will have wasted time and costs associated with the Mediation (although, since much of the work can be re-used in litigation, the net cost may not be that much). Management time: Better used towards resolution rather than (unused) trial preparation or in conflict. Most litigation is settled just before trial.   Business confidentiality: Is assured compared to a public hearing or arbitration.   No publicity or record, so no precedent is set.   More options for satisfactory resolution: Creative solutions and more varied remedies. Solutions not limited by legal rules or precedent. Current and future interests can be explored to help achieve a solution. For example, a trade off might be agreed where a licensee who is refusing to accept or pay on delivery, can be persuaded to do so if the distributor agrees to give him another film he wants.   You will show at least part of your hand, which will assist your opponent in litigation.   No discovery; You will never know whether there are documents in the possession of the other party which may have been worth millions to you.   Better satisfaction with the results: The parties are in control of the process and the outcome. A successful outcome results in a contractual agreement or a consent award.   There may be a perceived tendency to "split the difference". Addresses unreasonable claims and expectations: If they believe they are right, people become righteous and get an inflated perception of their case. Careful analysis of strengths and weaknesses puts the case into perspective. Also that of the other side.   Improves communications between the parties: Breaks down rigid positions and communication which is generally only via the parties' lawyers. This causes misunderstandings due to length of communication chain and often a lack of intimate knowledge of the business case by the lawyers. Face-to-face meeting allows open communication between the parties again.