Litigation and mediation are two methods used to resolve disputes in court.

In litigation, a plaintiff files a complaint, the defendant submits an answer, and a judge determines which party’s claims are legally justified after examining the issues and evidence. The judgment is legally binding and typically results in a clear win-or-lose outcome.

By contrast, in mediation, a panel consisting of a judge and two neutral specialists mediates between the claimant and the respondent and proposes a settlement that both parties can accept. The panel is not required to decide whether the claim is legally justified. Instead, it aims to help the parties reach a mutually acceptable resolution. In addition, mediation proceedings are conducted in private, unlike litigation, which is generally open to the public. This procedure is particularly suitable when the relationship between the parties has not completely broken down.

In litigation, the court may encourage the parties to settle during the proceedings. However, such discussions are often influenced by the judge’s view of the likely outcome of the case. In mediation, although the legal merits of the claim are still relevant, the panel tends to promote settlement more flexibly.

Each option has its pros and cons, so the parties should carefully consider which procedure is more appropriate when resolving a dispute.