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The models used in resolving business conflicts are formed on the basis of the cultural and legal attitudes in the society in relation to the conflict, which encourage or prohibit one or another way of resolving the conflict. The model for resolving any conflict is based on the use of various methods. Peaceful pre-trial settlement of a dispute (ADR, negotiations, agreement, compromises) is considered the most effective and least costly in modern business practice.

In this blog post, we'll take a quick look at how ADR works in Taiwan.

Settling a dispute via arbitration in Taiwan

Only if the parties to the conflict have come to an agreement on arbitration and express their intention to make mutual concessions, such a dispute can be settled through arbitration in Taiwan.

Arbitration in Taiwan is becoming more common, in particular, in conflicts in the real estate business. Such disputes are usually referred to a specialized institution - the Construction Arbitration Association.

Settlement of international disputes through arbitration in Taiwan

A foreign arbitration award is an opinion made outside of the jurisdiction or regulated under foreign law on the island. The foreign court opinion is subject to enforcement.

NOTE: Taiwan is not a signatory to the NY Convention and therefore does not apply to arbitration in that jurisdiction.

Dispute resolution through mediation in Taiwan

According to local laws, dispute resolution through mediation in Taiwan may be mandatory or optional.

The following issues can be resolved through mediation:

  • conflicts between owners of real estate or other persons using real estate;
  • the definition of boundaries of real estate;
  • disputes between property co-owners arising from the management, disposal or division of such assets in an undivided state;
  • disputes arising from the management of the building between the owners of a shared ownership or persons using the building;
  • disputes in connection with the increase, decrease or release from rent for real estate;
  • related to the lease agreements;
  • disputes arising from a traffic accident or treatment;
  • employment contracts.

Any party may also request that a dispute resolution be settled through mediation in Taiwan before initiating legal proceedings. Mediation provides for the possibility of satisfying the interests of all conflicts, subject to their revision of their previously formed positions, the goals that they intended to achieve in the conflict.

Who can provide mediator services in Taiwan

Almost any person can be a mediator. With one exception - he must be independent and impartial. The activity of mediators can be paid or not paid - by agreement. Mediators are not entrepreneurs - they are private individuals.

People who have higher education and have completed the mediator training program can carry out the activities of mediators in Taiwan on a professional basis. Any capable people who have reached the age of 21 and have no criminal record can carry out the activities of mediators on an unprofessional basis.

Accordingly, anyone can be a mediator, someone whom the parties trust and whose decision they are ready to listen to. The main and mandatory condition is his independence, and all other questions about the choice of a mediator are decided by the parties independently.

The successful completion of the conflict is achieved by agreement of the parties. Mediation is able to integrate the interests of the conflicting parties. When using it, no one sacrifices their own interests. Each conflict seeks to satisfy his interests, and therefore feels like a winner. To achieve such a desirable outcome, the conflicts must abandon their position, reconsider their goals that they set in this conflict.

A decision made in a dispute resolution process through mediation in Taiwan has the same consequences as a case in court. This means that protocols drawn up on the basis of a settlement agreement between the parties are enforceable.

If you are planning to resolve a dispute via ADR in Taiwan, we suggest that you seek prior advice from our qualified specialists.