Definition - What does Mediator mean?
A mediator is a person that is hired by two parties who are in the process of suing one another, as a first step to resolve the dispute. If two parties with a legal problem agree to attend mediation before going to court, or instead of going to court, they will attend a different location with a third party that listens to both sides and determines what a fair resolution would be. This saves in legal fees and time in the courts.
Justipedia explains Mediator
There are certain small claims situations in which agreeing to attend mediation means that both parties agree to allow the mediator to make the final determination in the same way that a judge does. It is more informal than court and is preferred for that reason.