"the act of a third person who interferes between two contending parties with a view to reconcile them or persuade them to adjust or settle their dispute"  -- Black's Law Dictionary

That is a very sterile definition of the mediation process.  A mediation leaves the parties in charge of their own fate.  The mediator will not issue a decision in the case and will not make a judgment as to who is right or wrong.  Instead, a skillful mediator tries to guide the parties to find a middle ground they can agree on.   

In addition to leaving the parties in control of their fate, mediation is often a fraction of the cost of litigating a case.  Plus, the parties can control the cost of the mediation by deciding how much of the mediator's time they want to use.  Mediations are also far less stressful than traditional litigation as they take place in a conference room instead of a courtroom and move at a pace to suit the parties.

Mediation is not a fit for everyone.  A successful mediation requires two willing participants.  If you are still trying to figure out if mediation is a fit, followo the link for a few thoughts to consider.

Attorney Allen has been mediating cases for over 18 years as both counsel representing a party to the mediation and as a mediator.  He has extensive mediation experience in family and  cases and is a big proponent of helping parties utilize mediation to keep them in control of the outcome in their case.