Besides the traditional method of dispute resolution by the Court, one of the preferred methods that the disputing parties are interested in choosing is to use commercial mediation. Many industrialized countries adopt this system, which is considered an effective commercial conflict settlement method with numerous advantages, including the following:
The first advantage of commercial mediation in settling commercial disputes is that it maintains a cooperative connection between the parties while also saving time and money. With friendly nature, mediation is designed in order to maintain and develop relations for both parties’ benefit, and thus, in general, cause less damage to parties’ inherent relation.
Second, commercial mediation has easy and flexible methods, when parties have the flexibility of choosing the time and venue for the conciliation proceedings. Moreover, parties are free to participate or not to participate in the mediation while in arbitration, they are bound to arbitration agreement and therefore, cannot choose to withdraw from any arbitral procedure. Unlike arbitration and court proceedings which are generally more adversarial in nature, parties in conciliation proceedings take on a more active role in the discussions and negotiations, with a view to reaching an amicable solution. If an amicable decision is not reached, the parties may instead opt to continue conciliation proceedings or file an application for the dispute to be resolved by commercial arbitration or a competent court.
Furthermore, because the parties have the discretion to accept or refuse to conciliate, this method of conflict resolution can keep the company and the disagreement in private. Information exchanged during conciliation proceedings are kept confidential, unless otherwise agreed by the parties or required by law. The parties also have the ability to prefer that the mediation be done openly or privately.
Besides
the traditional
method
of dispute resolution by the Court, one of the preferred
methods
that the disputing
parties
are interested
in choosing is to
use
commercial
mediation
.
Many
industrialized countries adopt this system, which
is considered
an effective
commercial
conflict settlement
method
with numerous advantages, including the following:
The
first
advantage of
commercial
mediation
in settling
commercial
disputes is that it maintains a cooperative
connection between
the
parties
while
also
saving time and money. With friendly nature,
mediation
is designed
in order to maintain and develop relations for both
parties’
benefit, and
thus
,
in general
, cause less damage to
parties’
inherent relation.
Second,
commercial
mediation
has easy and flexible
methods
, when
parties
have the flexibility of choosing the time and venue for the
conciliation
proceedings.
Moreover
,
parties
are free to participate or not to participate in the
mediation
while in
arbitration
, they
are bound
to
arbitration
agreement and
therefore
, cannot choose to withdraw from any
arbitral
procedure. Unlike
arbitration
and court proceedings which are
generally
more adversarial in nature,
parties
in
conciliation
proceedings take on a more active role in the discussions and negotiations, with a view to reaching an amicable solution. If an amicable decision is not reached, the
parties
may
instead
opt to continue
conciliation
proceedings or file an application for the dispute to
be resolved
by
commercial
arbitration
or a competent court.
Furthermore
,
because
the
parties
have the discretion to accept or refuse to conciliate, this
method
of conflict resolution can
keep
the
company
and the disagreement in private. Information exchanged during
conciliation
proceedings are
kept
confidential, unless
otherwise
agreed
by the
parties
or required by law. The
parties
also
have the ability to prefer that the
mediation
be done
openly
or
privately
.