Commercial mediation
An amicable dispute resolution process with the help of a neutral third party (mediator) who facilitates negotiation without imposing a solution.
Commercial mediation is a voluntary and confidential dispute resolution process in which a neutral and impartial third party, the mediator, helps the parties find a mutually acceptable solution to their dispute.
Essential characteristics:
- Voluntary: parties freely enter and exit the process
- Confidential: exchanges cannot be used in subsequent proceedings
- Non-binding: the mediator does not decide, they facilitate
- Fast: typically 1 to 3 days of mediation
- Cost-effective: significantly less expensive than arbitration or litigation
The ICC offers a Mediation Rules framework and administers international mediations. Other institutions offer similar services: CEDR (Centre for Effective Dispute Resolution, London), JAMS (US).
Mediation is particularly suited to international commercial disputes because it preserves the commercial relationship between the parties. If it fails, parties retain the right to proceed to arbitration or litigation.
The Singapore Convention on Mediation (2019) facilitates international enforcement of mediated settlement agreements, bridging the gap that existed with arbitration (New York Convention).