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Mediation vs. Arbitration: A Difficult Relationship

Wednesday, June, 15, 2011


Mediation vs. arbitration: a High Court decision in the Chinese city of Hong Kong has called the world's attention to potential difficulties that can arise when arbitration and mediation are mixed together in the same process.  In the case at issue, the court refused to enforce an award handed down by an arbitration attorney who had previously made efforts to mediate between the two sides in dispute.  This overlap of functions is actually a common practice in China, but the High Court felt that in this case, the system produced a significant risk of a biased award.

 

Mediation vs. Arbitration: Practices Vary Worldwide

 

The world has yet to reach a consensus when it comes to what an arbitration attorney should, or should not, be permitted to do in the interests of promoting an amicable settlement to a dispute.  In some nations, it is quite common for members of an arbitration panel to seek to mediate between the parties, but in the recent Hong Kong case, the award handed down afterwards was rejected as possibly tainted.  An arbitration attorney is supposed to remain impartial, even avoiding the appearance of bias.  This may be more difficult, or even impossible, in cases where the arbitration panel has also served as de-facto mediation attorneys.

Learn more about Mediation or find a Mediation Attorney in the National Mediation Directory.