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Because it works in the vast majority of cases. Over two-thirds of disputes settle on the day of mediation itself and many others are settled shortly afterwards. Mediations often succeed where negotiations have failed. In the words of one solicitor representing a party to a successful mediation "it adds a touch of magic".

Unlike court proceedings and many negotiations, mediation is not confrontational. Its purpose is to achieve a solution that is acceptable to all sides; it is therefore far less stressful for the parties.

It is reasonably inexpensive. Mediations generally last no more than one day and the preparation for them is far more limited than that for a trial.

Mediations can be arranged quickly at any time after a dispute has arisen and can help to resolve it before substantial costs are incurred.

It can achieve constructive results which cannot be obtained by court hearings, e.g. apologies, explanations, new agreements, which not only allow the parties to continue doing business with each other but may also enhance their relationship.

A successful party to litigation is likely to be refused its costs if it is shown that that party unreasonably refused to agree to mediation (Halsey v Milton Keynes NHS Trust [2004] EWCA (Civ) 576). In giving judgment in the Court of Appeal, Lord Justice Dyson said "All members of the legal profession who conduct litigation should now routinely consider with their clients whether their disputes are suitable for ADR."