Mediation vs Arbitration: an Analysis to Determine Which is More Effective as Mode of Dispute Resolution.

TABLE OF CONTENTS 

Certification ....................................................................................................... I 

Declaration ........................................................................................................ II 

Dedication .......................................................................................................... III 

Abstract. .............................................................................................................. V 

Acknowledgements ........................................................................................... VI 

Table of contents ....................................... : ....................................................... VII 

List of statutes .................................................................................................... X 

List of cases ........................................................................................................ XI 

Abbreviations .................................................................................................... .XII 

CHAPTER ONE 

1.0 INTRODUCTION ....................................................................................................... ! 

1.1. JUDICIAL DISPUTE RESOLUTION ....................................................................... 2 

1.2. EXTRA-JUDICIAL DISPUTE RESOLUTION ...................................................... .4 

1.2.1 TRADITIONAL PERCEPTION OF ADR ................................................... 5 

1.2.2. TYPES OF ADR .......................................................................................... 8 

1.2.2.1. Negotiation and Good Offices ....................................................... 9 

1.2.2.2. Collaborative law .......................................................................... I 0 

1.2.2.3. Scheduling Conference and Mini-trial ......................................... 12 

1.2.2.4. Conciliation ................................................................................... l2 

1.2.2.5. Mediation ...................................................................................... l4 

1.2.2.5.1 Suitability to mediation .................................................... l7 

1.2.2.5.2 Stages of mediation .......................................................... I? 

1.2.2.5.3 Role of a mediator.. .......................................................... IS 

1.2.2.5.4 Liability of a mediator ..................................................... 19 

1.2.2.5.5 Advantages and disadvantages of mediation .................... 20 

VI 

1.2.2.6. ABITRA TION .............................................................................. 22 

1.2.2.6.1. Arbitrability of matters ........................................................ 24 

1.2.2.6.2. Law applicable in arbitration ................................................ 25 

1.2.2.6.3. The arbitration agreement. ................................................... 28 

1.2.2.6.4. Arbitral tribunal... ................................................................ 29 

1.2.2.6.5. Arbitral awards ..................................................................... 31 

1.2.2.6.6. Advantages and disadvantages of arbitration ....................... 34 

1.3. BACKGROUND INFORMATION .......................................................................... 35 

1.3.1. History of alternative dispute resolution .......................................... 35 

1.4. PROBLEM STATEMENT.. ..................................................................................... 36 

1.5. JUSTIFICA TION ...................................................................................................... 37 

1.6. OBJECTIVES ............................................................................................................ 37 

1.6.1. General objectives ............................................................................ 3 7 

1.6.2. Specific objectives ........................................................................... 37 

I. 7. HYPOTHESIS ........................................................................................................... 38 

1.8. SCOPE OF THE STUD¥ ................... : ...................................................................... 38 

1.8.1. Geographical Scope .......................................................................... 38 

1.8.2. Time scope ....................................................................................... .38 

CHAPTER2 

LITERATURE REVrEW. ............................................................................................. 39 

2.1. ALTERNATIVE DISPUTE RESOLUTJON ............................................................ 39 

2.2. ARBITRATION ........................................................................................................ 39 

VII 

2.3. MEDIATION ............................................................................................................ .4l 

CHAPTER3 

METHODOLOGY AND DATA REPRF~SENTATION ............................................ .43 

3.1. METHODOLOGY ................................................................................................... .43 

3.2. DATA COLLECTION AND REPRESENTATION ................................................ .43 

CHAPTER4 

RESULTS AND INTERPRET A TION ........................................................................ .44 

4.1. THE MORE PREFERRED MODE OF ADR AMID ARBITRATION 

AND MEDIATION .......................................................................................................... .44 

4.2. THE CHALLENGES TO MEDIATION AND ARBITRATION ............................. .47 

4.2.1. Culture ............................................................................................... 4 7 

4.2 .2. Cost and time ................................................................................... .48 

4.2.3. Lack of jurisdiction over some matters ............................................ .48 

4.2.4. The potential need for court's involvement.. .................................... .49 

4.2.5. No predictability or appeals on decisions .......................................... 49 

4.2.6. Negative perception on mediation and arbitration ............................. 50 

4. 2. 7. Freed om to participate ( vo I untary) ................................................... 50 

4.2.8. Emotions ............................................................................................ 51 

·VHI 

4.3. INTERPRETATION AND DISCUSSION ................................................................ 51 

4.4. CONCLUSION .......................................................................................................... 53 

4.5. RECCOMENDATION .............................................................................................. 53 

B!BLIOGRAPHY .................................................

ABSTRACT

The progressively global nature of the economy increases the probability of conflict amid geographically and culturally separated persons from diverse nations. Although court action is the most traditional resort, arbitration and mediation have gained popularity as viable alternatives. Arbitration involves the legally-binding settlement of a dispute outside the legal system by an independent party while mediation also involves an independent third party, who is normally a facilitator in reaching a consensus and the opinion of the third party is not inflicted on the clashing entities. Whether a dispute it settled by arbitration or mediation largely depends on the nature of the disagreement, the characteristics and desires of the parties involved and the viability of other methods of dispute settlement. The study will research on literature related to alternative dispute resolution, arbitration and mediation .It will look at cases/disputes in 2009 so as to enable investigation of the study's objective; which is to find out which method between arbitration and mediation is more effective and hence more preferred as a means of dispute resolution. The paper will also investigate the challenges facing mediation and arbitration and give recommendations.