FAQs - COVID-19 Emergency Mediation Program (EMP)

What is mediation?

Mediation is simply ‘facilitated negotiation.’ 

Mediation is a way to facilitate negotiations between parties with the assistance of a neutral party (the ‘Mediator’) in order to reach a resolution that is satisfactory to all parties. It is an orderly process that focuses on the interests of the parties and enables them to reach a solution that they themselves craft.

Mediation is a voluntary, confidential proceeding; nothing that is discussed or agreed upon for the purpose of mediation can be made public outside the mediation process unless the parties agree otherwise.

 

What are the benefits of mediation?

  • Saves money: Less expensive than arbitration or litigation.
  • Saves time. Court processed can take many months, even years.
  • With mediation, most disputes are resolved during a single working day, so individuals and companies cannot drag out dispute resolution proceedings.
  • Mutually Satisfactory Outcomes:  Parties are more satisfied with solutions that have been mutually agreed upon with the assistance of a Mediator, as opposed to those imposed by a court or other decisionmaker.
  • Provides privacy and confidentiality, which enhances the potential for reaching results satisfactory to all parties and thus the continuation of a potentially positive future relationship between them.

 

Amid the coronavirus crisis: Why is mediation the ideal solution for resolving commercial disputes?

  • Proceedings can be initiated, and the paperwork submitted remotely through the SCCA website at www.sadr.org
  •  Mediation conferences are held remotely using the videoconferencing systems provided by the Center.
  • All proceedings are conducted pursuant to reliable institutional rules and with the support of a trained technical team at SCCA.
  • All SCCA Mediators are trained professionals with the requisite skills   and are bound by the SCCA Code of Ethics.
  • The settlements reached by the parties are final and require no further action in appellate or other courts.
  • Based on mutual agreement among the parties, the mediated settlement will reflect the particular needs and situations of all parties. s.

 

Is the mediation service available to none-Saudi parties?

Yes, SCCA offers its services equally to Saudis and none-Saudi parties inside and outside Saudi Arabia.

 

How long do mediation proceedings take?

SCCA establishes a schedule for the mediation process once all parties are known and the mediator is appointed.  The mediation conference usually lasts approximately three to four hours but may be extended for a full day.

 

Who speaks during the mediation process?

All parties and the mediator. A party’s representative may also speak if the party so wishes, but the best contributions are those made by the parties (principals) themselves.

 

How can you best prepare for mediation? What should you do before conference begin?

Ensure that all important documents are collected (such as agreements, contracts, and correspondence related to the issue). Prepare ahead of time to describe the facts and circumstances of the dispute, identify disagreements and what should be brought up during the mediation, and write down all key points so it is easy to remember them. Consideration should also be given to the parties’ shared interests that would help in reaching a settlement.

 

Prepare yourself mentally and emotionally so that you are able to listen carefully, speak clearly and be creative with regard to problem solving and implementable  solutions.

 

How can you make the most of mediation during the conference?

  • Listen to the other party’s viewpoint and to try to understand and respect their view of the issues, even if you do not agree.
  • Explain your current understanding and perspectives and the reasoning underlying it.

Acknowledge anything you could have done better or that you might have done differently had you known then what you know now.

  • Consider concessions you might be prepared to consider in order to reach an agreement.
  • Be honest and forthright about what has occurred between you and the other parties.
  • Put yourself in the other party’s place
  • Review and consider all the options offered to make an informed decision and reach a solution to the dispute.
  • You will learn more about the other parties and all the circumstances from the discussions that take place during mediation. Remember that the better you and the other party can communicate, the easier it is to reach a solution during the mediation.

 

What are the possible outcomes of mediation?

If an agreement is reached, the parties are usually the ones who draw up the agreement, but the mediator can write up the terms in the form of a settlement agreement. Once the parties signed such an agreement, it becomes binding and enforceable contract.

 

What happens if I change my mind after mediation?

A signed settlement agreement is considered final like any other agreement, so you should think about what you are agreeing to and make sure it is acceptable to you.

 

What happens if a party does not adhere to the settlement agreement?

If one of the parties does not adhere to its obligations under the settlement agreement, such as by making payment, for example, the other party may seek recourse to the competent court to enforce the agreement.

 

What happens if the parties do not reach an agreement?

If no agreement is reached, the parties can resolve the dispute before the judiciary or through arbitration, where an arbitration clause exists, or seek recourse through any other procedure they deem appropriate.

 

Who are SCCA’s mediators?

The SCCA Mediators have experience in mediation and the necessary skills to manage and facilitate mediation effectively and efficiently.

 

SCCA’s mediators adhere to SCCA’s Code of Ethics for Mediators, and conduct mediation in accordance with SCCA rules and procedures. For instance, a mediator must withdraw from any case where it appears there is a conflict of interest with one of the parties. A mediator must also honor the voluntary nature of the mediation process.

 

Who should use the SCCA COVID-19 Emergency Mediation Program (EMP)?

EMP is designed to help individuals and businesses that are in financial distress due to the COVID-19 pandemic and need immediate attention to their dispute. It also benefits those who are in an ongoing relationship and may seek to preserve it after the dispute has been resolved. Industries such as Hospitality, Tourism, Haj & Umrah, Entertainment, Real Estate, and Non-Food Retail have been particularly hit hard by the current crisis, leading in some instances to a complete suspension of their revenue sources while expenses continue to accumulate.

Mediation provides a unique opportunity to find a sensible, workable solution that all parties to the dispute can live with as we all try to overcome these trying times.

 

What are the stages of the SCCA COVID-19 Emergency Mediation Program (EMP)?

The following shall guide Parties and Mediators through the various EMP stages of the Mediation process:

  1. Agreement to Mediate
  2. Filing of Mediation
  3. Mediator Appointment
  4. Preparation for the Mediation Conference
  5. Summary Briefs
  6. Mediation Conference
  7. Settlement Agreement
  8. Enforceable Title

 

How can parties ensure better efficiency for their Mediation Conference?

In order to maximize your time and the opportunities inherent in a Mediation Conference, these are some helpful tips for all persons participating via video conference. Each Participant is to observe the following:

  • Identify yourself when speaking.
  • Refrain from interrupting any speaker. Instead note the issue and raise it when it is your time to speak.
  • Use the video conference facilities reasonably and responsibly, including:
    • avoid using equipment that interferes with internet efficiency;
    • refrain from any recording (unless agreed to in advance by all parties and the Mediator);
    • mute microphones when not speaking to reduce environmental noise.
  • Ensure that any other persons who attend the Mediation, with the permission of the parties and the consent of the Mediator, observe the same helpful and efficient approaches.
  • Take whatever steps that support the efficiency of the Mediation Conference.

 

Do parties need to agree on mediation?

YES, as Mediation is a voluntary, consensual process, all parties involved in the dispute must agree, in writing, to have their dispute administered by the SCCA under its current Mediation Rules.

 

How can parties file their mediation request and what are the required documents?

The parties or their authorized representatives must file the Submission Form, along with any supporting documents, via SCCA’s secure Online Filing System.

 

At the time of the filing, the parties must also remit payment of the SCCA Administrative Fee and the Mediator Fee in accordance with the SCCA EMP Fee Schedule in Response to COVID-19 Claims. Once the documents and payment have been received, the SCCA will review the documents and, if all filing requirements have been met, initiate the Mediation.

 

How is the mediator appointed for mediation?

Upon receipt of the Submission Form, the SCCA will initiate the Mediation and appoint a qualified Mediator from its SCCA Mediator Roster, unless the parties have previously designated a Mediator in the Submission Form. The Meditator must be impartial and independent from the parties and is required to abide by the SCCA’s Code of Ethics for Mediators as well as the EMP’s modified SCCA Mediation Rules and related Fee Schedule.

 

In case of an objection, the SCCA will automatically substitute the Mediator with another Mediator from its SCCA Mediator Roster, unless the parties designate a mutually agreeable Mediator. The same shall apply in case of a vacancy due to a Mediator being unwilling or unable to serve for any reason.

 

How can parties prepare before the Mediation Conference?

The parties are encouraged to exercise their best efforts to prepare themselves as best as they can in advance of their Mediation Conference. A few items parties may wish to review and consider in their preparations include:

 

  • Understand and prioritize the issues underlying the dispute considering your needs and interests as well as beginning to reflect on those of the other side.
  • Recognize and evaluate what can realistically be expected given the circumstances of the case, the resources available and any other factors or constraints, including time available.
  • Ascertain the strength and weaknesses of your case and determine your course of action. In doing so, focus on the solution, not the problem.
  • Analyze your current thinking and perspectives, the other side’s perspectives, any possible tradeoffs, and settlement options.
  • Consider whether a Confidentiality Agreement between the parties may be needed that reaches beyond of what Article 11 of the SCCA Mediation Rules already covers.

 

The Mediator may ask the parties to join him or her in a Case Management Call via phone or video conference to discuss any preliminary matters and/or logistics ahead of the Mediation Conference.

 

Do parties need to submit Summary Briefs?

Unless otherwise requested by the Mediator, the parties shall submit a Summary Brief outlining their respective understanding of the issues underlying the dispute. The Summary Brief shall be submitted to the Mediator, copying the other side and the SCCA, at least 3 business days in advance of the Mediation Conference and shall be between 1 and 5 pages.

 

What is the role of the mediator during the Mediation Conference?

The Mediator’s primary role is to provide ‘professional facilitated negotiation’ among the parties. In order to provide an effective process in which the parties can respectfully exchange their perspectives and then creatively craft their own solutions together, your Mediator provides the structure and techniques known to enhance communication and negotiation for a workable solution.

 

The Mediation Conference usually begins with the Mediator describing the Mediation process, including the order in which the parties will initially speak, identifying each of the disputed issues and the order in which they will be addressed, the decorum, the use of Caucuses and any matters that may require confidentiality. You and the other side can ask the Mediator any questions or seek clarification about the process at any time.

 

What happens when parties agree on a settlement?

In case of a successful settlement, the parties will reduce the final terms in a settlement agreement. A Mediator can help the parties memorialize such terms in a clear, comprehensive, complete and implementable fashion and ensure that they have addressed all issues raised during the Mediation. A template that contains the minimum requirements for converting the Settlement Agreement into an Enforceable Title (Bond) can be found on the SCCA’s website at www.sadr.org/EMP/Settlement.

 

What if parties do not reach an agreement?

If the Mediation does not result in a complete settlement, the parties may agree to submit any or all remaining issues of their dispute to Arbitration under the SCCA Arbitration Rules. Pursuant to Article 11(3) of the SCCA Mediation Rules, and unless otherwise agreed by the parties or required by applicable law, the parties shall maintain the confidentiality of the Mediation and shall not rely on, or introduce as evidence in the Arbitration proceeding any views expressed or suggestions made with respect to a possible settlement, any admissions made, or any proposals made by any party or views expressed by the Mediator whether verbal, written, electronic, or in any other form.

 

How are the admin fees and mediator’s fee calculated?

SCCA admin fee and the mediator’s fee are based on the claim’s amount. Further details of the SCCA Mediation Fee Schedule in Response to COVID-19 Claims can be found here.

 

How are the mediation costs allocated?

Unless otherwise agreed by the parties in writing, the SCCA Administrative Fee and the Mediator Fee (the “Costs”) and any extraordinary expenses shall be borne equally by the parties. The party’s other costs and expenses, including the expenses of participants for either side, shall remain the responsibility of that party.

 

Will the settlement agreement become an executive bond?

By submitting their dispute to SCCA administration under EMP, the parties authorize the SCCA to appoint an SCCA-approved Conciliator for the purpose of converting their Settlement Agreement into an Enforceable Title (Bond), and to take all other necessary steps needed. This feature is available to both domestic as well as international parties in need of certainty after the Settlement Agreement has been signed.

 

How would the Mediation Conference be held and is there a user manual on the technology?

The Mediation Conferences are held either through Conference Calls or through remote video conference technology called (Bluejeans). A user manual is available for download here.

 

In addition, SCCA team will communicate with the parties to ensure they are familiar both ways prior to their scheduled Mediation Conference.

 

What is the period applicable to SCCA COVID-19 Emergency Mediation Program (EMP)?

The SCCA Mediation Fee Schedule in Response to COVID-19 Claims comes into effect on 20 April 2020 and will automatically expire on 30 April 2021.

 

I have further questions; how can I contact SCCA?

Further inquiries are welcome through this link and select topic: (COVID-19 Mediation).