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It is an exercise in avoidance of risk. There is also the matter of the expensive trial, because the costs associated are usually substantial, and whichever side wins in the end, both sides have lost a great deal in terms of financial costs, time expended and the stress of going through with it, all of which add up to a powerful incentive to get the matter settled. And indeed, settlement rates are extremely high; less than five percent of litigated cases ever go to trial.

By no means all negotiations relate to events that have already occurred. Indeed, most negotiations concerns future events, but these are not the kinds of negotiation that usually require the assistance of a mediator. Most business people are entirely capable of mediating by themselves, and such negotiations are usually called contract negotiations, occurring many millions of times every year in order to work out amicable ways of profitable cooperation.

It is generally when things have gone wrong that the presence of a mediator is helpful, and the reason for this is that when something is turned into a TGW (thing gone wrong), there is always associated with it the upset, the emotional reaction of the parties to the difficulty.

People never enter into negotiation or dispute resolution with respect to matters in the past that have gone right.
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