DON’T LITIGATE-MEDIATE!
1. WHAT
IS MEDIATION?
1.1 It is 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.
2. WHY
MEDIATE?
2.1 Mediation is popular in many countries
like the
·
Parties have
full say over the final result and decide on the outcome.
·
Parties work
together and not against each other.
·
Parties can
maintain, restore or rebuild their relationship.
·
Parties enjoy
substantial savings in terms of money and time.
·
It is informal
and non-confrontational.
·
It’s
confidential and non-prejudicial to the parties in the event the matter cannot
be settled and parties take the dispute to arbitration or litigation.
3. IS
OUR MATTER SUITABLE FOR MEDIATION?
3.1
The parties
should always consider mediation as their first choice for resolving their
commercial disputed.
3.2
Mediation works
best if parties have a genuine desire to resolve their differences, have a
give-and-take attitude, are prepared to discuss their problems and are willing
to work towards finding a solution.
3.3
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.
3.4
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.
4. HOW
DO WE REFER A MATTER FOR MEDIATION?
4.1
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.
4.2
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.
5. DO WE
HAVE TO WAIT?
5.1 Mediation is usually conducted between 1 or 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
basis, mediations may be arranged within 2 to 3 days from the date of request
for mediation.
6. HOW
LONG WILL IT TAKE?
6.1 The mediation process could take a few
hours to few days until the matter settles or concludes, depending on how
complicated the matter is.
7. WHO
IS THE MEDIATOR?
7.1 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.
8. HOW
IS IT CONDUCTED?
8.1 A time is scheduled for the parties to
meet whereupon a brief statement of facts should be brought. Companies may send
a duly authorised representative with full powers to negotiate and settle.
Mediations can be conducted in English and / or Bahasa
9. HOW
DO PARTIES REACH A SETTLEMENT/
9.1 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.
10. IS IT
CHEAPER?
10.1 Yes – the good news is that mediation is
cheaper, more informal and flexible. The cost of the process is shared as
follows:
COSTS
|
Quantum of Claim * |
Mediator’s Fee Per Party |
|
RM100,000 and below |
RM500 per day or part thereof |
|
RM100,001 – RM250,000 |
RM750 per day or part thereof |
|
RM250,001 – RM500,000 |
RM1,000 per day or part thereof |
|
RM500,001 – RM 750,000 |
RM1,250 per day or part thereof |
|
RM750,000 – RM1,000,000 |
RM1,500 per day or part thereof |
|
RM1,000,001 – RM2,000,000 |
RM2,000 per day or part thereof |
|
RM2,000,001 – RM3,000,000 |
RM2,500 per day or part thereof |
|
RM3,000,001 – RM5,000,000 |
RM3,000 per day or part thereof |
|
RM5,000,001 – RM 10,000,000 |
RM4,000 per day or part thereof |
|
Above RM10,000,000 |
RM5,000 per day or part thereof |
NB: The mediator’s Scale of Fees is subject to change
from time to time)
Administrative Charge RM300**
* The Quantum of Claim is merely a guideline and may
not be applicable in all cases.
Any doubt or dispute shall be referred to the
Malaysian Mediation Centre for a final decision.
** The administrative Charge and Room Rental Rates
(please refer next page) are shared by the parties on as equal basis.
THE MALAYSIAN MEDIATION CENTRE
CHARGES FOR RENTAL OF THE CENTRE’S FACILITIES
|
RENTAL |
|
|
FULL DAY |
HALF DAY* |
|
RM 350.00 |
RM175.00 |
*half day
rates will only be applicable if:
·
notified at the
time of booking;
·
the time the
meeting commences and ends is provided;
·
the room is rented for a period of three hours or less.