1. What is Mediation?
As from 2 April 2009, under the Civil Justice Reform, mediation was introduced as a voluntary resolution process. The aim is to encourage settlement and to achieve cost-effectiveness.
The Court may now stay the Court proceedings to enable the parties to explore alternative dispute resolution (“ADR”). Mediation is the recommended ADR by the Court.
Mediation is not mandatory but the Court could make adverse costs order where a party unreasonably fails to engage in mediation.
Mediation is a flexible process conducted confidentially in which a neutral person (the mediator) assists the parties in working towards a negotiated agreement of a dispute or difference, with the parties in ultimate control of the decision to settle and the terms of resolution.