Mediation-Arbitration (Med-Arb)

Mediation and Arbitration are quite distinct procedures. Mediation is not binding upon the parties, but is a process where a Neutral Mediator works with the parties and their counsel in seeking to facilitate an agreeable resolution of the disputes between them.

On the other hand, Arbitration is a process where the parties select a Neutral Arbitrator who will hear evidence presented by the parties, and then render a binding Arbitration Award. An Arbitration Award is essentially the same as a judgment by a Court of competent jurisdiction. In fact, an Arbitration Award may be enforced in State and Federal Courts.

Historically, the two systems - Mediation and Arbitration - have been separate and distinct. The parties historically use one or the other, but not both. However, recent experience has shown that the two concepts can be combined into a unitary process which has the potential to provide the parties the best of both procedures and provide a highly efficient and fair system to end all matters in dispute.

Mediation - Arbitration (or Med-Arb) is a simple procedure. If the parties agree, they sign a Juridical Solutions PLC Mediation-Arbitration Agreement. Then the assigned Juridical Solution PLC Neutral commences a standard Mediation process. The mediator tries to help the parties resolve all of their outstanding disputes. As is sometimes the case, the parties frequently resolve a number of issues and begin to reach a common ground, but cannot reach a final and complete resolution.

Under Mediation-Arbitration, when both parties request it or when the Mediator determines that further mediation will not be productive, the Neutral Mediator or a new Neutral Mediator supplied by Juridical Solutions PLC or a similar organization will then assume the role as a Sole Arbitrator. At that point, the Arbitrator will hear any further evidence the parties care to present and review any legal memoranda or argument the parties care to present, and then enter a binding Arbitration Award.

In rendering the Arbitration Award, the Arbitrator will, to the extent possible and if requested by the Parties, implement any resolutions reached in the mediation phase and resolve by an Arbitration Award only the matters remaining in dispute.

The advantages to the Med-Arb combined procedure are substantial:

  • Med-Arb is purely voluntary: it is only used if both parties agree to do so in advance of the Mediation.
  • It provides an efficient procedure for the parties to resolve their disputes on a voluntary basis, and at the same time be assured that all issues will be resolved at the end of the process.
  • When combined with a high-low agreement an agreement between the parties as to the minimum and maximum amount of an award which is not disclosed to the neutral Mediator or Arbitrator), it gives the parties substantial control as to the contours of the final resolution of their dispute.

Rules of Arbitration



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