Mediation in business is at the peak of popularity. But the success of this dispute settlement procedure largely depends on the mediator. From this blog post, you will learn the nuances of choosing a mediator in Hong Kong to resolve a dispute quickly and efficiently.
Accreditation of mediators in HK
The regulation of mediation in HK does not specify the qualification of mediators. Theoretically, any person trusted by the parties can be appointed by them as a mediator.
However, it’s always better to trust the process of resolving conflict in HK to an accredited mediator who works in accordance with higher standards and who has passed training courses.
To become a professional mediator and practitioner of resolving a dispute in HK, accreditation must include:
- completion of a special training course (normally, 40 hours);
- an assessment that confirms that the mediator has reached an acceptable level of competence in at least two cases.
Responsibility of the mediator
The Mediation Code does not say anything about the mediator's liability, and assigns the mediator the responsibility for considering the appropriateness of professional liability insurance.
Dispute resolution through mediation in HK rarely happens with an insured intermediary, because the cost of professional insurance is high and the risk is low.
If you need to settle a dispute in HK through mediation with professional insurance, our experienced specialists are at your service.
The reason for resorting to mediation is always a certain conflict. But the applicability of the mediation method largely depends on the nature of the conflict. Therefore, you first need to assess whether mediation is applicable to your particular case as the most effective method of resolving a dispute. It is necessary to highlight the criteria by which cases can be attributed to one or another method of dispute resolution, depending on its procedural competence. This will make it possible to more clearly distinguish cases in which mediation or other alternative dispute resolution (ADR) procedures have the highest procedural competence, from cases that are necessary or preferable to entrust the courts (or use a combined dispute resolution procedure).
Mediation is most applicable when:
- the interests of the disputing parties are not focused on legal claims related to the past, but on the future interests of the parties to the conflict and the possibility of maintaining normal partnership relations in the future;
- it is about a long-term, meaningful relationship (for example, in a long-term business relationship);
- the situation is strongly influenced by personal relationships and the emotional side of the conflict (as, for example, in case of disagreements between shareholders);
- the parties prefer to maintain complete confidentiality (legal proceedings are usually public);
- the parties need to work out a comprehensive general solution, and the legal dispute covers (or may cover) only part of the problem;
- in complex cases that cannot be resolved in the interests of both parties (or can be resolved unsatisfactorily) using litigation with its binary “yes / no” construct.
To resolve a dispute in Hong Kong through mediation is quite easy if there is a clause in the agreement between the parties on mediation.
Conflicts of interest
Mediators have to disclose any connections/interests that the mediator may have or have had with either party. Otherwise, he is at risk of disqualification. Also, a mediator will not be able to settle a dispute in HK if he/she has previously acted on behalf of one of the parties, owned shares or is in close contact with one of the parties.
With the help of mediation one can resolve commercial, financial and other types of disputes. Unlike the court decision, not every mediation leads to a result in the sense of complete
resolving a conflict situation. But when such a result is achieved, it is usually much stronger than a court order. Mediation allows you to consider the conflict in all the variety of its aspects, and to work out solutions that reflect the true state of affairs, and therefore realistic, doable, that is, viable.
In order to resolve a dispute in HK as effectively as possible, we recommend that you consult experienced advisors in the field of international dispute resolution. Our seasoned professionals are at your service.