What is a mediated settlement?

A mediated settlement is defined as an agreement reached with the assistance of a neutral third-party mediator. This process involves both parties presenting their case to the mediator, who facilitates a discussion aimed at helping them find common ground and reach a resolution. The mediator does not have the authority to impose a solution but rather guides the conversation to ensure both parties can express their concerns and negotiate terms effectively.

This approach is often preferred because it is typically less adversarial than litigation, can be more cost-effective, and can foster better communication between the parties. The mediator's role is crucial, as they help clarify issues, encourage creative solutions, and work towards a mutually satisfactory agreement.

In contrast, other options describe processes that do not involve mediation. For example, reaching an agreement through litigation would imply a formal legal process, while an informal agreement between neighbors may lack structure and the impartiality that a mediator provides. Taking legal action involves the judiciary to resolve disputes, which is quite different from the collaborative nature of mediation.