Mediation On The Heels Of Arbitration - Competition Or Peaceful Coexistence?

Arbitration has long been the favorite of the ADR family. Mediation, however, has established an increasingly relevant position for itself when it comes to resolving (international) commercial disputes quickly, cost-efficiently, and successfully. Efforts to render mediated settlement agreements enforceable persist and will likely further bolster mediation as an independent and, possibly, even superior alternative to arbitration. Yet, as a closer analysis suggests, mediation, just as arbitration, has its place and purpose.

Commercial mediation offers many advantages, such as, in particular, a broad scope of application, flexibility of procedure, compatibility with other dispute resolution methods, time and cost-efficiency, and confidentiality. For all these benefits, many commercial agreements even require efforts to mediate before arbitration may be commenced.