Don't litigate, Mediate!

What is mediation?

It’s a voluntary process in which an impartial third party, known as a Mediator, assists parties involved in a dispute to resolve their differences in an amicable manner.

1. Why mediate?

Mediation is popular in many countries like the US, Canada, UK and Australia. The process is preferred because:

2. Is our matter suitable for mediation?

The Parties should always consider mediation as their first choice for resolving their commercial disputes.

Mediation works best if parties have a genuine desire to resolve their differences, have a give-and-take attitude, prepared to discuss their problems and willing to work towards finding a solution.

Mediation is especially useful when there is a continuing relationship between the parties, or when the relationship is important to them. It is also suitable for disputes where there is room for compromise.

On the other hand, where parties are not willing to settle the matter and insist on their views, positions or legal rights, mediation would not be appropriate.

3. How do we refer a matter for mediation?

The parties can contact the MALAYSIAN MEDIATION CENTRE (MMC), set up under the auspices of the Malaysian Bar Council, directly. Where the parties have not agreed to a Mediator, the MMC will appoint a suitable mediator acceptable to the parties and fix a date for the mediation session.

If the request for mediation comes only from one party, the MMC will contact the other parties to see if they are prepared to come for mediation. The mediation will proceed only with the agreement of all parties.

4. Do we have to wait?

Mediations are usually conducted between 1 to 2 weeks from the date of the request for mediation. The date for mediation depends on when the parties, their representatives and a suitable mediator are available to attend the mediation session. In urgent cases, mediations may be arranged within 2 to 3 days from the date of request for mediation.

5. How long will it take?

The mediation process could take a few hours to a few days until the matter settles or concludes, depending on how complicated the matters is.

6. Who is the mediator?

A panel which comprises of experienced and trained lawyers for the time being. The MMC will recommend the mediator by taking into account the nature of the dispute expertise of the mediator and any special requirements of the parties.

7. How is it conducted?

A time is scheduled for the parties to meet whereupon a brief statement of facts should be brought. Companies may send a duly authorized representative with full powers to negotiate and settle. Mediations can be conducted in English and / or Bahasa Malaysia. Any special requirements of the parties can be met upon request.

8. How do parties reach a settlement?

Parties reach a settlement on their own. The mediator’s role is to facilitate the process of reaching that goal. The mediator will draw up the terms of the settlement and if the dispute is in Court the terms ought to be recorded before the Judge to secure the position of the parties.

9. Is it cheaper?

Yes – the good news is that mediation is cheaper, more informal and flexible. The cost of the process is hared as follows:

(NB: The mediator’s Scale of Fees is subject to change from time to time)Administrative Charge RM 300**

• * The Quantum of Claim is merely a guideline and may not be applicable in all cases.Any doubt of dispute shall be referred to the Malaysian Mediation Centre for a final decision.
• ** The Administrative Charge and Room Rental Rates (refer next table) are shared by the parties on as equal basis.

• * half day rates will only be applicable if:

1. Notified at the time of booking;
2. the time the meeting commences and ends is provided;
3. the room is rented for a period of three hours or less.