Court mediation is a fundamental mechanism in civil litigation where the court exercises its judicial authority to facilitate voluntary agreements between disputing parties. Unlike informal negotiations, court mediation is a formal judicial activity conducted by judges with specific procedural requirements under the Civil Procedure Law. The court plays an active role in guiding the mediation process while ensuring both parties can reach a mutually acceptable resolution.
Litigation settlement represents a fundamentally different approach from court mediation. While court mediation involves active judicial participation and formal procedures, litigation settlement is purely a matter of party autonomy. In settlement, only the disputing parties are involved, with no mandatory court participation. The parties voluntarily negotiate and dispose of their substantive and procedural rights with minimal formal requirements. This creates a clear distinction between the judicial nature of court mediation and the private, autonomous character of litigation settlement.
The fundamental difference between court mediation and litigation settlement lies in their subjects and authority structures. In court mediation, there are three key participants: both disputing parties and the judicial personnel, specifically judges who exercise judicial authority. The court plays an active role with oversight powers and formal responsibilities. In contrast, litigation settlement involves only two subjects - the disputing parties themselves. There is no mandatory judicial participation, and the process operates purely on the principle of party autonomy. This creates a clear distinction between the three-party judicial process of mediation and the two-party private negotiation of settlement.
The procedural requirements for court mediation and litigation settlement differ significantly in their legal framework and formality. Court mediation operates under strict procedures mandated by the Civil Procedure Law, requiring formal documentation, judicial oversight, and official record creation. The process involves multiple structured steps from case filing to final approval. In contrast, litigation settlement has flexible and minimal procedural requirements, governed primarily by party autonomy. Settlement allows informal negotiation with private documentation and no mandatory oversight. This fundamental difference reflects the formal judicial nature of mediation versus the private contractual nature of settlement agreements.