What is Mediation
Mediation is a flexible process conducted confidentially in which a neutral person appointed by or on behalf of the parties (“Mediator”) actively assists them in working towards a resolution of a dispute or difference, with the parties in ultimate control of the decision to settle and the terms of the settlement agreement. Settlement usually occurs in a matter of days, making mediation a cost-effective method chosen by many businesses around the world.
In line with growing international trends, and for the purposes of CRCICA Rules, Mediation under CRCICA Rules covers any contractual reference to different methods of amicable dispute resolution that requires the appointment of a neutral third party, all while allowing the parties to tailor the process in agreement with CRCICA and the neutral.
Mediation offers the following unique advantages compared to other forms of amicable dispute resolution:
Solution-oriented: Mediation does not focus on the past, but rather aims to assist the parties in finding a quick and mutually agreeable solution that helps them preserve their business interests in the optimal manner.
Time and cost savings: Mediation is usually conducted in days, with many mediations settled on the same day.
Confidential: This allows for open discussions and allows the parties to preserve their commercial reputation.
Informal: As it is solution-oriented, mediation does not require much preparation since it does not dig into documentary evidence and lengthy memorials. Rather, mediation seeks to put the parties in a relaxed and open environment where they can discuss issues openly in order to find workable solutions.
Control by the parties: Parties totally control the outcome of the mediation and are not under an obligation to reach a settlement. Parties can terminate mediation at any time.
Learning tool to avoid future disputes: Mediation allows parties to understand the reasons underlying the conflict and can help them to effectively avoid disputes in other business transactions that can occur for similar reasons.
Can preserve relationships: Although not a necessary outcome, mediation can help in preserving business relationships between parties.
Types of Mediation
There are two different types of mediation, institutional and ad hoc, the essential features of each are set out below:
- Institutional mediation is administered by a dispute resolution institution, such as CRCICA.
- Mediation processes administered by CRCICA require that the parties have agreed that the dispute shall be resolved by mediation under the CRCICA Mediation Rules, which can be through:
- One party (or all parties) invoking mediation pursuant to a mediation clause in the agreement under which the dispute has arisen;
- The conclusion of an agreement to mediate by the parties after the dispute has arisen; or
- An invitation by a party to another(s) to enter into mediation under CRCICA Mediation Rules that is accepted by the other party
- CRCICA institutional Mediation Rules provide a flexible and comprehensive framework for the conduct of mediation covering: how to request mediation, the selection of mediator, the conduct of proceedings, confidentiality, termination whether by settlement or otherwise.
- Choosing institutional mediation offers a structured environment for the conduct of mediation, with , for example, CRCICA’s state of the art Hearing Centre, its distinguished Panel of Mediators, and administrative assistance from beginning to end of mediation.
- Parties who wish to agree on mediation under the CRCICA Meditation Rules are recommended to use the following Mediation Clauses.
Ad Hoc Mediation
Ad hoc mediations are arranged between the mediator and the parties in the sense that parties and mediator must design their own mediation proceedings or agree on a set of ready-made mediation rules (such as the UNCITRAL Rules of International Commercial Mediation). CRCICA’s role in ad hoc mediations is to provide facilities, and can, based on parties’ request, assist the parties in selecting the mediator.