Which method involves a third party assisting in reaching a settlement?

The method that involves a third party assisting in reaching a settlement is mediation. In mediation, an impartial third-party mediator facilitates discussions between the parties seeking a resolution. The mediator helps to clarify issues, encourages open communication, and seeks to guide both sides toward finding a mutually acceptable agreement.

This process is generally collaborative, as the mediator does not impose a decision or outcome but rather supports the parties in exploring options that could lead to a satisfactory resolution. Mediation is often preferred in dispute resolution because it can be quicker, less adversarial, and more cost-effective compared to litigation.

The other methods listed do not involve a third party in the same supportive capacity as mediation. Litigation typically involves a judge or jury making a binding decision in a formal court setting, while negotiation occurs directly between the parties without an intermediary. Appraisal relates to the process of evaluating the value of a claim or property, often in scenarios involving insurance disputes, and similarly does not involve mediation.