Mediation
 is a non-binding process in which an impartial third party facilitates 
the negotiations process between the disputants and it is that impartial
 third party who is called the mediator.  The mediator has 
no decision making power, he has no decision making power and the 
parties maintain the control over the substantive outcome of the 
mediation.
However,
 the mediator with the assistance of the parties will control the 
process and he will with the consent of the parties set and enforce the 
ground rules for the mediation process.  If in the dispute 
the two examples that we have looked at we now bring in a third party as
 the mediator, he will probably get an overview from both parties as to 
what their contentions are.  He will then agree with the 
parties that each party will be given an opportunity to state their 
case, they could also agree that when one party is stating their case, 
the other party shall not interrupt.  The role of the 
mediator is not to impose his own solutions and not to even suggest 
solutions but that the solutions should be suggested and agreed upon by 
the parties themselves.
Story telling - the disputants communicate with the mediator to tell their story.  The
 mediator then assures them that he has heard the story by re stating 
what each party has told you and letting them state whether those are 
the facts as they have stated them.  You re narrate the story.  You may then ask them to suggest the way forward and both parties can state how they want to proceed.  Lay down the rules.
The mediator should not descend to the arena but should let the disputants decide how to conduct the negotiations.   
ARBITRATION AND MEDIATION
Arbitration
 is a process in which a third party neutral, or an odd number panel of 
neutrals render a decision based on the merits of the case.  The
 Hybrid of mediation or the hybrid between mediation and arbitration 
which is a very rare sort of scenario is that the third party neutral 
commences the process in the role of a mediator and if that does not 
yield or result in a resolutions the mediation ceases and the mediator 
assumes or becomes an arbitrator who then makes a binding decision.  In
 the arbitration mediation hybrid (arbmed) the disputants present their 
respective cases to the third party neutral who prepares or makes a 
decision, he does not however share that decision or release that 
decision to the parties but he keeps it away and then assumes the role 
of a mediator.  If a result of the mediation, the parties 
reach a resolution, he destroys his decision but if the mediation does 
not resolve in a resolution then he releases his decision to the 
parties.
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