IICArb offers rules of procedure for the following three alternative dispute resolution mechanisms:
Mediation, Adjudication, and Arbitration
Mediation is a voluntary, private, confidential and without prejudice procedure that involves an independent and impartial third party (the Mediator) who facilitates communication between the parties and assists them with seeking options to resolve their disputes.
The Mediator does not make a decision or give an award. The outcome of matters resolved in Mediation becomes binding once reduced into a settlement agreement and signed by the parties.
There are generally a limited number of persons who may attend the Mediation sessions. Mediation can only work where the parties are willing to compromise – in Mediation there is no winner nor loser.
The focus of Mediation is to preserve the relationship between the parties and create a good communication foundation.
Adjudication is a voluntary, private and confidential dispute resolution mechanism. The process involves the appointment of an independent and impartial third party called the Adjudicator. Generally the disputes between the parties are decided on papers meaning that there is no hearing that takes place. The Adjudicator will sometimes call for a meeting with the parties for the purpose of clarifying any information, discussing procedure or requesting additional information.
The Adjudicator makes a decision which is binding and enforceable on the parties and final unless and until revised in Arbitration (in accordance with the procedure under the parties’ contract or IICArb’s rules for Adjudication).
Adjudication is generally an intermediate procedure to Arbitration. Adjudication is a cost effective and speedy procedure.
Arbitration is a voluntary, private (in some jurisdictions), and confidential procedure used when the parties have agreed to resolve their dispute by way of Arbitration. An Arbitrator (who is an independent and impartial third party/parties) are appointed by the parties or by an institution such as IICArb.
Unlike Adjudication, Arbitration follows a formal procedure where generally a hearing is held. Arbitration is a speedy and cost effective mechanism as opposed to litigation. Arbitration can be conducted in an expedited manner – suitable for less complex disputes.
Arbitration proceedings can be conducted by one or more Arbitrators. The Arbitrator hears both sides of the dispute and gives an award which is binding and enforceable as well as final unless the parties agreed to an appeal procedure. The Arbitral Tribunal hearing the appeal would generally consist of three Arbitrators (Arbitral Tribunal). Under certain legally prescribed circumstances, an Arbitrator’s award can be referred to a court for review – not appeal.