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Most mediators are also experienced solicitors or barristers (certainly the mediators here in East Anglia) and are adept at keeping a close eye on the legal aspects whilst helping the parties achieve sensible, realistic outcomes at (comparatively) very modest cost.

If the legal costs continue to mount up during the mediation, that is to do with the way that the lawyers approach it, rather than the cost of the mediation itself. In family mediation (where disputes are often of high value and can involve complex issues as well as high emotions - and so often more difficult than civil mediations) the norm is for solicitors and counsel not to take part but to be available to advise the parties if needed. That system works extremely well, at much less cost than the civil mediation model, and can often be more collaborative.

Mary Banham-Hall says above that the drivers of dispute are very often non legal. I agree. Mediation is much better suited to help the parties to resolve those issues, and can result in imaginative solutions that would not be available from the courts.