Courts have instituted policies that encourage, and in some cases mandate, a mediated resolution of disputes wherever possible. Small claims mediation, when successful, allows courts to resolve disputes without costly and time-consuming litigation clogging up court dockets. For plaintiffs and defendants, it has the advantage of saving time and money and the ability to come to a mutually agreed upon result, rather than having a court impose a resolution.

Small claims mediation is especially useful when your dispute is with a friend, neighbor, customer, partner, or anyone else with whom you want to keep good ongoing relations. Because small claims mediation is a low-cost or free mechanism, it's a good method of resolving disputes in a more amicable manner.