Arbitration & Mediation
Arbitration & Mediation
Arbitration & Mediation
Arbitration & Mediation
The majority of civil disputes litigated between parties are settled before trial. A settlement is usually preferable to prosecuting or defending a dispute to trial, having regard to the risk of failure at trial and the time and legal costs incurred in resolving a dispute at trial.
Mediation has become an integral process in assisting the resolution of disputes prior to trial. Mediation is a flexible and confidential process of negotiation, facilitated by an independent impartial third person, called the mediator. The mediator (usually a barrister who is an accredited mediator), will facilitate the parties in reaching an amicable settlement of their dispute.
The mediator will possess the necessary skills that assist the parties to break deadlocks in their negotiations and reach a compromise in areas of contention.
While mediation does not always achieve a final resolution of the dispute, it is often effective in bringing the parties to the table and reducing the points of contention between them. Thus, even if the mediation is unsuccessful, it may facilitate the settlement of a dispute later by changing the perceptions of the parties as to the possibility of settlement, which may in turn save the parties the time and costs.
In summary, the key advantages of mediation include confidentiality, informality and the saving of time and costs if the dispute is resolved at mediation.
It is therefore vitally important that you receive sound advice in respect of the option of mediating your dispute with a view to saving you time, costs and avoiding the uncertainty of resolving your dispute at trial.
Arbitration
Arbitration is an alternative / appropriate dispute resolution (ADR) process to Court litigation. It is particularly useful in the following circumstances:
- the subject matter of the dispute is highly technical, requiring the appointment of an arbitrator specialising in the relevant field;
- the parties require the confidentiality of “closed court” hearings that take place in arbitrations – whereas most commercial cases tried in Court are heard in “open court” which permits the public and the press to attend;
- the parties wish to have a relatively quicker resolution of the dispute.
Arbitration offers a flexible and efficient means of resolving disputes both in Hong Kong and internationally. Arbitration is particularly effective where there is disagreement in litigating a dispute in a jurisdiction acceptable to all parties to a contract. For example, arbitration also allows international transactions to be dealt with under a legal system and at a geographical location chosen by the parties.
During an arbitration hearing, the parties present arguments and evidence to the arbitrator, who makes a determination. The decision of the arbitrator is final and binding and the award is enforceable.
The jurisdiction to arbitrate is usually founded upon the consent of parties, pursuant to an arbitration clause contained in commercial contracts. As such, it is important that you obtain legal advice to ensure that any arbitration clause you wish to include in your commercial contract is valid and enforceable.
If you need assistance with an arbitration or mediation matter, please contact Gregory Payne at greg.payne@paynevelasco.com
Alternative Dispute Resolution
Resolving Disputes Efficiently with Arbitration & Mediation
Payne Velasco provides expert arbitration and mediation services, helping clients settle disputes confidentially, efficiently and with professional guidance tailored to their needs.
Confidential and Efficient
Arbitration provides a private, quicker alternative to court, protecting sensitive information.
Skilled Mediation
Independent mediators guide parties to settlements, breaking deadlocks and reducing disputes.
International Reach
Arbitration can be conducted globally under agreed legal systems and locations.
Expert Legal Support
Payne Velasco offers experienced guidance, ensuring effective and reliable dispute resolution.
Arbitration & Mediation FAQs
Common Questions About Arbitration & Mediation
Get clear answers on arbitration and mediation, including how the processes work, their benefits and what to expect at each stage.
What is the difference between arbitration and mediation?
Arbitration is a formal process where an impartial arbitrator hears arguments and evidence and makes a binding decision. Mediation is a flexible, informal process where a neutral mediator facilitates discussions to help parties reach a mutually acceptable agreement.
Why should I consider arbitration or mediation over traditional litigation?
Both methods offer key advantages:
- Confidentiality: Proceedings are private, protecting sensitive information.
- Time and Cost Efficiency: Often quicker and less expensive than court trials.
- Control: Parties retain more control over the process and outcomes.
How do I initiate arbitration or mediation?
Contact Payne Velasco to schedule a consultation. Our team will assess your dispute, recommend the appropriate process, and guide you through the steps and necessary documentation.
What types of disputes can be resolved through arbitration or mediation? A:
We assist with a wide range of disputes, including:
- Commercial disputes, such as contractual disagreements and shareholder issues
- Family disputes, including divorce and financial settlements
- Employment disputes, including unfair dismissal and workplace conflicts
- Civil disputes, such as property disagreements, personal injury claims, and defamation
Are the outcomes legally binding?
Arbitration decisions are legally binding and enforceable. Mediation outcomes are only binding if both parties agree to the terms and formalize them in a legal document.