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Mediation-Arbitration/ Med-Arb

 

Med-Arb is a hybrid process used for many years, specifically when it is necessary to close an issue. It is basically a contract of submission to arbitration with the benefit of being able to mediate the case first. In most cases, the parties reach their own agreement. Arbitration, if it is reached, can be in law or equity, and the characteristics of the process are agreed a priori by the parties since it is a private arbitration and is about available rights. The contract to submit the dispute to arbitration is executable just like any other submission to arbitration, that is, a party cannot decide not to use arbitration if it does not reach agreement in Med-Arb mediation.

 

In mediating Med-Arb, the parties know that the mediator is an impartial figure who can not use information disclosed against a party, nor does it impose its judgment. In order to reap the benefits of this trust that the parties place in the mediator, if Med-Arb proceeds to arbitration, the mediator withdraws from the process, and a new person is incorporated serving as arbitrator.