What is ADR?
ADR stands for “Alternative Dispute Resolution.” It refers to any method of resolving disputes outside of the traditional court system, such as mediation, arbitration, or negotiation. The goal of ADR is typically to resolve disputes more quickly, inexpensively, and informally than through the court system.
What is mediation?
Mediation is a form of alternative dispute resolution (ADR) in which a neutral third party, called a mediator, helps the disputing parties to reach a mutually acceptable resolution of their conflict. The mediator does not impose a solution, but instead facilitates communication and negotiation between the parties to help them find a solution that works for everyone. Mediation can be used to resolve disputes in a wide range of areas, including family disputes, employment disputes, and commercial disputes. Mediation is often faster, less expensive, and less adversarial than traditional litigation.
What is Arbitration?
Arbitration is a form of alternative dispute resolution (ADR) in which an impartial third party, called an arbitrator, renders a binding decision to resolve a dispute. The parties to the dispute agree in advance to be bound by the arbitrator’s decision, and to give up their right to take the matter to court. The arbitration process is usually less formal and faster than a court trial, and the arbitration proceedings and award are usually confidential. Arbitration is often used in cases involving commercial disputes, employment disputes, and disputes in specific industries such as construction or securities.
Is ADR mandatory?
ADR, including mediation and arbitration, is generally not mandatory, meaning that the parties involved in a dispute do not have to use ADR to resolve their conflict. However, in some cases, ADR may be required by contract or by law. For example, some contracts may include a clause requiring the parties to use mediation or arbitration to resolve disputes arising from the contract. Also, some courts may require parties to engage in ADR before allowing them to proceed to a trial. In such cases, ADR is mandatory and the parties must participate in it before going to court.
What laws in Pakistan recognize mediation and arbitration?
In Pakistan, the legal framework for mediation and arbitration is primarily provided by the Arbitration Act, 1940 and the Alternate Dispute Resolution Act, 2017.
The Arbitration Act, 1940 provides for the enforcement of arbitration agreements and the conduct of arbitral proceedings. It also deals with the appointment and powers of arbitrators, as well as the recognition and enforcement of arbitral awards.
Additionally, the Code of Civil Procedure and the Code of Criminal Procedure also provide for the use of mediation and arbitration in certain cases.
Are mediation and arbitration agreements/awards recognized by courts?
The Arbitration Act, 1940 provides for the enforcement of arbitration agreements and the recognition and enforcement of arbitral awards. It also provides for the appointment of arbitrators and sets out the procedures for conducting arbitration proceedings. The Act also provides for the grounds on which an arbitration award can be set aside or challenged in court.
The Alternate Dispute Resolution Act, 2017 (ADR Act) also provides for the recognition and enforcement of ADR agreements and awards.
In general, courts will recognize and enforce mediation and arbitration agreements and awards if they are entered into voluntarily and without any fraud, corruption, undue influence or other misconduct. Additionally, the agreements and awards must be in accordance with the laws of Pakistan.
How long can a mediation take to resolve a matter?
In Pakistan, the time it takes to resolve a matter through mediation can vary depending on the complexity of the dispute and the willingness of the parties to reach a resolution.
The Alternate Dispute Resolution Act, 2017 (ADR Act) empowers the Mediator to set the duration of the mediation process, and the Mediator can decide how many sessions are needed to resolve the dispute. The Mediator can also set the agenda for each session and decide how long each session should last.
It is also important to note that the Act also provides that the Mediation process shall be completed within 30 days from the date of referral of the dispute to mediation, unless the parties agree to extend the time.
Can I opt for ADR directly or does the court have to refer the case to ADR?
In Pakistan, parties can choose to use ADR, including mediation and arbitration, to resolve disputes on their own initiative, without the involvement of the court. This is known as “voluntary ADR” or “private ADR.”
Under the Alternate Dispute Resolution Act, 2017 (ADR Act), the parties can agree to use ADR process to resolve disputes arising out of a contract or a transaction, or disputes of a civil nature, by including an ADR clause in their agreement or by entering into an ADR agreement after a dispute arises. Additionally, the Code of Civil Procedure and the Code of Criminal Procedure also provide for the use of mediation and arbitration in certain cases, in which the court can refer the parties to ADR, this is known as “court-referred ADR” or “compulsory ADR”.
In short, in Pakistan, parties can choose to use ADR on their own initiative, or the court can refer the parties to ADR.
How is a mediator appointed?
In Pakistan, the appointment of a mediator is typically done through agreement between the parties, or by an ADR institution or a court.
When the parties have included an ADR clause in their agreement or entered into an ADR agreement after a dispute arises, they can agree on the mediator to be appointed. They can also agree on the ADR institution to be approached, which will appoint the Mediator.
How is an arbitrator appointed?
When the parties have included an arbitration clause in their contract or entered into an arbitration agreement after a dispute arises, they can agree on the arbitrator(s) to be appointed. They can also agree on the ADR institution to be approached, which will appoint the arbitrator(s).
If the parties are unable to agree on the arbitrator(s), an ADR institution or the court can appoint the arbitrator(s). In this case, the ADR institution or the court will typically appoint a neutral and impartial person with the necessary qualifications and experience to act as an arbitrator.
If only one party agrees to ADR, how can MICADR help?
If one party is unwilling to participate in the ADR process, the MICADR may still be able to facilitate a resolution.
However, if one party is willing to participate in ADR, MICADR may:
We can provide information and education to the willing party about the ADR process and how it can be used to resolve disputes.
We can also provide the willing party with a list of qualified and neutral ADR practitioners, such as mediators or arbitrators, whom they can approach to try to resolve the dispute.
MICADR may be able to provide the willing party with an opportunity to participate in a “shuttle mediation” or “caucus mediation” process, where the mediator meets separately with each party to discuss the dispute and try to reach a resolution.
It’s also worth noting that, if the parties have included an ADR clause in their agreement or entered into an ADR agreement after a dispute arises, one of the parties may be bound to participate in the ADR process.
I have a dispute with a party in another country? How will mediation then take place and how will the settlement of the mediation be enforced?
If you have a dispute with a party in another country and you wish to resolve the dispute through mediation, there are a few ways in which the mediation can take place and the settlement can be enforced.
MICADR offers “virtual mediation” or “online dispute resolution” where the parties and the mediator participate in the mediation process remotely, using video conferencing or other online tools.
Regarding the settlement, The settlement agreement reached in mediation is binding and enforceable in most countries. However, the settlement agreement will have to be converted into a court order, by applying to the court in the country where enforcement is sought. The court will then enforce the settlement as if it was its own order.
In order to facilitate the enforcement of the settlement agreement, the parties may choose to use the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, which provides for the recognition and enforcement of arbitral awards made in the territory of a country other than the country where the award is relied upon.
Additionally, the parties may choose to use the UNCITRAL Model Law on International Commercial Conciliation, which provides for the recognition and enforcement of conciliation agreements made in international commercial disputes.
How can I become a mediator?
MICADR offers a formal training program that involves courses or workshops on the principles and techniques of mediation, as well as gaining practical experience through role-playing exercises or simulated mediations.
Please reach out to us for further details and find out more about our program here
What is a Mediation Advocate?
A Mediation Advocate is a person who provides support and representation to a party during a mediation process. Mediation Advocates can be lawyers or other professionals who are trained in the principles and techniques of mediation and have experience in the field.
The role of a Mediation Advocate is to assist the party they represent in understanding the process of mediation, preparing for the mediation session, communicating effectively with the other party and the mediator, and negotiating a mutually acceptable resolution to the dispute.
How can I become a Mediation Advocate?
Becoming a Mediation Advocate typically involves completing a training program in mediation and gaining experience in the field. The specific requirements for becoming a Mediation Advocate can vary depending on the country and jurisdiction in which you wish to practice.
MICADR offers a Mediation Advocacy program that will allow you to represent the party they represent by:
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- Advising the party on the strengths and weaknesses of their case and the potential outcomes of the mediation process.
- Preparing the party for the mediation session by helping them to identify and prioritize their key issues and interests, and to develop effective negotiation strategies.
- Communicating effectively with the other party and the mediator during the mediation session, helps the party to express their views and concerns and to understand the other party’s position.
- Negotiating a resolution to the dispute that is acceptable to the party they represent.