FAQs

1. What is Alternative Dispute Resolution (ADR)?

Alternative Dispute Resolution refers to the less formal different ways by which parties resolves the disputes between themselves. These are preferred over the court proceedings because of the time effectiveness, inexpensiveness, confidentiality, convenience etc.

 

2. Why do we need ADR?

ADR is needed to provide a non-court mode to the parties to resolve their disputes. Moreover, ADR is preferred because of the party autonomy, neutrality, confidentiality, time and money effectiveness.

 

3. What are the different types of ADR?

There are different types of Alternative Dispute Resolution mechanisms. These include arbitration, mediation, neutral evaluation, expert determination, expert witness,  adjudication and settlement conferences.

 

4. What is an ADR clause?

ADR allows parties to customize their dispute resolution process. Parties can insert the standard arbitration or mediation clause in their contract and can further customize their clause with options that control for time and cost.

1. What is mediation?

Mediation is one of the methods of Alternative Dispute Resolution. In this process, a neutral third party acts as a mediator to resolve the disputes between the two parties. It is less formal than arbitration. The mediator facilitates the resolution of the parties’ disputes by supervising the exchange of information and the bargaining process. The mediator helps the parties find common ground and may also offer creative solutions and assist in drafting a final settlement. The role of the mediator is to interpret concerns, relay information between the parties, frame issues, and define the problems.

 

2. What is mediation in legal terms?

Mediation is a structured, interactive process where an impartial third party assists disputing parties in resolving conflict through the use of specialized communication and negotiation techniques.

3. How are mediators selected?          

Mediators are selected through a consensus of the participants in the ADR process. If the ADR participants have been working with a convener, the convener may help them identify the qualities they believe to be important in the selection of a mediator or facilitator, and then help them identify some potential sources for mediation. Often, ADR participants narrow the list of candidates to two or three and then arrange to interview them in-person or on the telephone. It is important to remember that the mediator or facilitator must be accepted by all ADR participants.

4. What is a mediator’s role in an ADR process?

Mediators have no authority to determine the outcome of a dispute, unlike judges in a court of law or officials in an administrative decision making process.  In an ADR process, the neutral third party’s role is to assist participants in collectively analyzing the issues involved in their dispute, effectively communicating their needs and interests, developing options for a resolution, and reaching agreement, if possible. Mediators have no stake in the substantive outcome of the process.

5. How does the process of mediation work?

The mediator begins by welcoming the parties and introducing the parties to each other. The mediator then outlines the process and the roles of the mediator, the parties, and attorneys (if present). The mediator ends the introduction by explaining the ground rules for the process.

The mediator then asks for statements from each party. Both parties have an opportunity to tell their story about what happened, from their viewpoint. Often, these stories are emotional. The mediator may ask clarifying questions, but typically the parties do not question each other. If the parties are too emotional, this part of the process may be cut short.

After both parties have spoken, the mediator may ask more questions, both to clarify the issues and to provide the other party with greater understanding.

At this point, the mediator may ask the parties to caucus (get together separately) for the purpose of discussion). The mediator talks with each party, proposing solutions, trying out scenarios, trying to get a commitment to a settlement by both parties.

The mediator goes back and forth between the parties during this time, clearing up misunderstandings, and carrying information, proposals, and points of agreement.

The mediator works to find points of agreement between the parties, in an effort to reach an agreement. At some point, the mediator may pose a final agreement for the parties and urge them to accept.

 

6. Do you need a lawyer to go to mediation?

Mediation does not require a lawyer; in fact part of the advantage of mediation is the lack of a lawyer and the corresponding legal fees. However, you may want to hire a lawyer as a consultant to offer advice during the mediation which is substantially cheaper than hiring a lawyer to litigate your case. Also, a lawyer should generally be consulted to discuss the consequences of the mediation and any settlement.

 

7. Can my case be mediated?

 Typically, only civil cases can be mediated. The general exception is that certain nonviolent criminal matters, such as harassment, often allow mediation. Typical civil cases that are mediated include business disputes, landlord-tenant disputes, small claims disputes, divorces, child custody disputes and contract disputes.

One of the primary reasons to choose mediation over typical litigation is if you are concerned about maintaining an important relationship with the person on the other side. Mediation is more cooperative and collaborative, so it is a good choice for disputes that involve business partners, co-parents, or next door neighbors.

8. How long does mediation typically take?

Mediations usually last for the duration of one or two days. Larger business and divorce/custody mediation may last significantly longer but still much quicker than traditional litigation.

9. How can I find a good, reliable mediator?

 Visit CIArb.

 

10. How much does it cost to go to mediation?

Mediations can be expensive in terms of the mediator’s fees and the attorney’s time in the mediation. Often, mediations last a full day; sometimes several days. Some famous mediators charge tens of thousands of dollars to attend, though most charge between $300-$500 an hour for their time. It is still usually far less expensive than a full trial.

 

11. What are the mediation techniques?

Rather than imposing a decision, mediation techniques such as communication skills, objectivity, and creativity can help disputants reach their own voluntary solution to the conflict.  

 

12. Are there cases where I shouldn’t consider mediation?

 Even if your case can be mediated, you should always question whether it is the best option given your goals and situation. Some typical reasons to not mediate might include:

  • You strongly feel that the other party should have to admit or be found guilty. Mediation will typically not involve any sort of admission of guilt; instead, it is structured more like a compromise.
  • You want to send a “message” or establish a legal precedent. Results from mediation are not binding on other parties, so even if you mediate a successful result from a large company, it will have no bearing on future cases against that company.
  • You believe a jury would be extremely sympathetic and award you a big verdict. Mediation is a compromise, and as such it tends to exclude extremely large settlements that juries can sometimes award.

13. Is mediation different than arbitration?

A mediator helps parties negotiate a settlement that will satisfy all the parties. A mediator does not decide a dispute. An arbitrator functions more like a judge, deciding the outcome of a dispute based on evidence and law presented in an arbitration.

1. What law governs arbitration in Pakistan?

Arbitration Act 1940 deals with domestic arbitration whereas the 2011 Recognition and Enforcement of Arbitral Awards deals with foreign judgments.

 

2. What are the types of arbitration?

Domestic Arbitration

International Arbitration

International Commercial Arbitration

Ad-Hoc Arbitration

Fast Track Arbitration

Institutional Arbitration

 

3. What is an arbitration institution?

An arbitral institution is usually defined as a permanent organization with a set of its own arbitration rules regulating the services provided by the organization and other procedural aspects of arbitration.

 

4. What is forced arbitration?

In the event of a dispute with the corporation, forced arbitration says that a consumer or an employee cannot take their case to court but instead has to go to a private arbitration forum designed by the very corporation the dispute is against.

 

5. What is the International Court of Arbitration?

The International Court of Arbitration an institution that resolves commercial and business disputes. Established by the International Chamber of Commerce, it is located in Paris, France, and consists of more than 100 arbitrators from roughly 90 countries.

 

6. What are ICC Arbitration rules?

ICC Rules of Arbitration define and regulate the management of cases received by the International Court of Arbitration. These rules prescribe the procedure for the arbitration in ICC such as appointment of arbitrator, conduct of each parties, formation of arbitral tribunal etc.

 

7. What is a mandatory arbitration clause?

An arbitration clause is a clause in a contract that requires the parties to resolve their disputes through an arbitration process.

 

8. What is a commercial arbitration?

Commercial arbitration is the system for final determination of commercial disputes in a judicial manner by a private arbitral tribunal appointed for that purpose.  

 

9. What is an international commercial arbitration?

International commercial arbitration (ICA) is a private dispute resolution process in which parties from different countries choose to have their disputes arising out of commercial transactions decided by one or more arbitrators, without the involvement of the courts of a particular country. The

 

10. What is investment treaty arbitration?

Bilateral investment treaties (or, BITs) are international agreements establishing the terms and conditions for private investment by nationals and companies of one state in another state. 

 

11. What is a bilateral investment treaty?

A bilateral investment treaty is an agreement establishing the terms and conditions for private investment by nationals and companies of one state in another state. This type of investment is called foreign direct investment. BITs are established through trade pacts. 

 

12. What is an international investment agreement?

An international investment agreement is a type of treaty between countries that addresses issues relevant to cross-border investments, usually for the purpose of protection, promotion and liberalization of such investments. 

 

13. What is investment arbitration?

Investment arbitration is a procedure to resolve disputes between foreign investors and host States (also called Investor-State Dispute Settlement or ISDS).

 

14. What is an arbitration panel?

Arbitration panels are composed of one or three arbitrators who are selected by the parties. They read the pleadings filed by the parties, listen to the arguments, study the documentary and/or testimonial evidence, and render a decision. The panel’s decision, called an “award,” is final and binding on all the parties.

 

1. What is adjudication?

Adjudication is the legal process by which an arbiter or judge reviews evidence and argumentation, including legal reasoning set forth by opposing parties or litigants, to come to a decision which determines rights and obligations between the parties involved.

 

2. What are the stages of adjudication?

STEP 1: NOTICE OF ADJUDICATION.

STEP 2: APPOINTING THE ADJUDICATOR.

STEP 3: THE ADJUDICATION CLAIM.

STEP 4: RESPONDING TO THE ADJUDICATION CLAIM.

STEP 5: RIGHT OF REPLY BY THE CLAIMANT.

STEP 6: RIGHT OF REJOINDER BY THE RESPONDENT.

STEP 7: THE ADJUDICATOR’S DETERMINATION.

 

3. What is an order of adjudication?

An order that a court may issue against someone if they cannot pay their debts when they are due to be paid. This order takes ownership of the debtor’s property away from the debtor and allows much of the property to be sold. The money raised is divided between the creditors following strict rules.

 

4. What is credit adjudication?

In a credit context, an Adjudication usually refers to the ruling of a judge to bankrupt or issue a judgment against a debtor. If a judge rules that you are to be made bankrupt or have a judgment issued against you, the specific entry will appear on your Credit Report as a harmful marker.

 

5. What is the adjudication hearing?

The Adjudication Hearing is a trial, where people come to court, take an oath to tell the truth and testify about the charge. The court also can receive documents offered at trial to evaluate the charge. At trial, the court first hears evidence from the prosecutor.

 

6. What is a dispositional hearing?

Dispositional hearing means a hearing to determine what order of disposition should be made concerning a child who is neglected or dependent. Such hearing may be part of the proceeding that includes the adjudicatory hearing, or it may be held at a time subsequent to the adjudicatory hearing.

 

7. What is claim adjudication in US healthcare?

After a medical claim is submitted, the insurance company determines their financial responsibility for the payment to the provider. This process is referred to as claims adjudication. The insurance company can decide to pay the claim in full, deny the claim, or to reduce the amount paid to the provider.

 

8. What is administrative adjudication?

Administrative Adjudication means the determination of questions of a judicial or quasi-judicial nature by an administrative department or agency. Like a regular court, administrative bodies hear the parties, sift evidence, and pronounce a decision in cases where legal rights or duties are involved.

 

9. What is real time adjudication?

RTA offers a path to comprehensively address the limitations of claims administration today—and, in doing so, materially reduce national health care spending. Under RTA, claims would be generated, submitted, and processed electronically at the point of service (i.e., before the end of a clinical encounter), allowing for payment assurance for providers and transparent prices for patients on a timeline consistent with payments for other consumer services.

 

10. What is affidavit of adjudication?

An Affidavit of Self-Adjudication is a written statement under oath by a sole heir (the “affiant”) where declaring that he is the only heir of the deceased and is adjudicating the entire inheritance to himself.

 

11. What does adjudication determination mean?

Adjudication is a workflow process in which two (or more) independent people (or teams) make a determination about diagnoses given certain data and criteria. Each team of adjudicators has access to the same data, but can not see the determinations made by others adjudicators until all determinations are complete.

 

12. What does it mean to withhold adjudication?

A withhold of adjudication is a withholding of conviction.  This means that you are not convicted of the offense.  However, it will be on your record and would have either been found guilty by a jury or pled guilty or no contest.

 

13. What is the difference between arbitration and adjudication?

In arbitration, the disputing parties agree on an impartial third party—an individual or a group—to hear both sides and resolve the issue. In adjudication, the decision is the responsibility of a judge, magistrate, or other legally-appointed or elected official.

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