Mediation is a process in which the parties to a dispute (and their attorneys) meet with a neutral, third-party mediator who works with the parties to resolve their differences and settle the dispute (often a lawsuit). In many civil lawsuits the court will order the parties to engage in mediation.

The parties are not required to settle or resolve their differences at mediation, and if they are unable to do so, the case will proceed to trial, with the judge or jury ultimately resolving the matters in dispute. Settlement talks or discussions at mediation are generally not admissible in evidence at trial.

In North Carolina, mediation is a widely used method for resolving disputes outside of court. The state encourages the use of mediation, particularly in civil lawsuits, where it is common for courts to order parties to engage in the process. During mediation, a neutral third-party mediator assists the disputing parties and their attorneys in negotiating a settlement. The mediator does not have the authority to impose a decision; instead, their role is to facilitate communication and help the parties find common ground. Participation in mediation does not obligate the parties to reach a settlement, and they retain the right to proceed to trial if an agreement cannot be reached. Furthermore, under North Carolina law, the confidentiality of mediation is protected. This means that any settlement discussions or statements made during mediation are generally inadmissible as evidence in any subsequent trial, as outlined in the North Carolina General Statutes (e.g., N.C. Gen. Stat. § 7A-38.1 for court-ordered mediation in civil cases). This confidentiality is designed to encourage open and honest communication during the mediation process.