Unlike a lawsuit, mediation is a process where the parties to a dispute work with a trained neutral party to resolve issues they cannot solve by themselves. So long as the participants understand the nature of the process and effectively consent to participate, any mediation process is possible and appropriate.
Mediation is voluntary. Either party can leave at any time and for any reason. While you may wish to have an attorney present, it is not mandatory provided that you understand that the mediator will provide no legal advice, but merely assist in bringing together a resolution of of the dispute. If the mediation fails, either party can then proceed with a lawsuit.
Everything that occurs during mediation is confidential - either by statute, court order or agreement of the parties. While a lawsuit can be extremely expensive and result in a decision that will favor one side or the other based upon the strict application of legal principals, a successful mediation can result in a win/win situation for both parties.
The mediator has an equal and balanced responsibility to assist each of the parties and cannot favor the interest of any one party over the other nor favor a particular result. The mediator's role is to ensure that all parties reach an agreement in a voluntarily and informed manner, and not as a result of coercion or intimidation.