Libel or defamation cases may arise when someone says something negative about another person such as a business owner that has an adverse effect on his or her reputation. This statement may even be in written form, such as a publication made to the media or a negative review of services. Businesses are particularly concerned about their public image because a negative interaction can cost them business from others down the line. When parties confront these legal challenges, they may decide to litigate the case, or they may decide to mediate it.

There are important differences between mediation and litigation. In litigation, the issues become very public. This can be a significant drawback in defamation cases that arise because of negative publicity. Having the case litigated in court may make the matter even more public and bring more exposure to the case. Mediation is confidential and private. What is discussed is not shared with the outside world. This helps preserve the privacy of the parties.

Litigation has limited remedies available to the parties. It can order a defendant to stop saying negative things about the plaintiff, but if the defendant fails to do so, the parties usually wind back up in court. The court can order the defendant to pay damages to make the plaintiff whole after taking a hit to his or her professional credibility, but then the plaintiff has to try to enforce the judgment, which is often a long and difficult process. Mediation can help the parties resolve a problem much faster than traditional litigation. Additionally, the solutions are often much faster, such as the parties agreeing not to say negative things about each other in public. Mediation can also save the defendant from the potential risk of being ordered to pay sizable damages.