Arbitration is one of the methods under Alternative Dispute Resolution (“ADR”) processes. In arbitration, parties have their disputes determined by independent and impartial dispute resolution practitioners (known as “arbitrators” or “tribunal”). The tribunal makes a binding determination of the problems in dispute. The arbitral tribunal can include legal and/or technical experts of the parties’ own choosing, and use procedures which the parties can select and influence.
International commercial arbitration is arbitration of disputes between parties from different countries, without recourse to the courts of a specific country. The resulting award is final and binding on the parties and is quickly enforceable throughout the globe. In a global economy, international arbitration could be a vital a part of doing business effectively.
Advantages of Arbitration
- More flexible than litigation with full control of the parties.
- Cost effective, time effective, and confidential.
- Preservation of a healthy and continuing commercial relationship between the parties.
- Completely independent and private process.
What is Conciliation or Mediation?
Conciliation is a non-binding informal dispute resolution process in which both parties agree to the appointment of a neutral third-party intermediary who assists the parties to objectively understand and evaluate their positions, with the aim of reaching a negotiated settlement.
The essence of Conciliation is a consensus-based resolution with a Mediator/Conciliator acting as a facilitator. Generally, only the mediator/conciliator, the parties and counsel would be present. The Conciliation is normally held in a private meeting room or online through electronic mediums or boardroom and no transcripts or records are kept of the meeting and discussions themselves. Conciliation can usually be completed in one or two days or less.
The mediator/conciliator’s role is solely to assist the parties in their negotiations by identifying barriers to settlement and to guide the parties in developing appropriate strategies for overcoming them.
Advantages of Conciliation
- Fosters cooperation and a problem-solving approach to conflicts.
- Improves communications.
- Helps you design your own solution.
- Everyone wins. Once a settlement has been reached, a Conciliation memorandum of understanding or agreement is usually drawn up.
- Repairs important business and personal relationships that may have been damaged through lack of communication and unresolved issues.
