SCCA adds “Mediation Facilitation Service” to its COVID-19 Emergency Mediation Program

Published Date: 31/01/2021

The Saudi Center for Commercial Arbitration (SCCA) extends its “COVID-19 Emergency Mediation Program” (EMP) through the end of April 2021 and adds a new "Mediation Facilitation Service ” that  supports parties wishing to obtain the assistance of SCCA in contacting the other side, with the goal of all parties agreeing to refer their dispute to SCCA for mediation.

Importantly for all those doing business in the Kingdom, the Ministry of Justice has been supportive of and investing in the qualitative development of professional alternative dispute resolution (ADR), including arbitration, mediation and conciliation. One of the most recent highlights is the promulgation of the Kingdom’s new Commercial Court Law and Implementing Regulations that now incorporate considerable support for mediation and conciliation. Certain commercial lawsuits must now be preceded by an attempt to mediate or conciliate the dispute before resorting to the courts. This significant accomplishment further underscores the Ministry of Justice’s efforts to promote the use of ADR in the Kingdom.

The SCCA’s new service is in line with this welcome development and expands on its already existing mediation services. Particularly, EMP was specifically designed and launched by the SCCA in early May of 2020 to provide a platform to address commercial disputes resulting from the COVID-19 pandemic. EMP carries three decisive benefits in comparison to other mediation and conciliation offerings. First, it allows parties to hold any meetings with a neutral expert mediator remotely using a SCCA-dedicated online platform while otherwise benefiting from the SCCA’s time-tested and reliable Mediation Rules that promote neutrality, efficiency and fair results. Second, SCCA reduced its administrative fees for EMP to address the financial distress many businesses and individuals are facing due to the pandemic. Third and unique in its kind, the outcome is now enforceable by converting the parties’ settlement agreement into an enforceable bond in cooperation and partnership with the Conciliation Center of the Ministry of Justice. EMP has been praised by the wider ADR community in the Kingdom and has received international recognition by making the Top 10 list of Global Arbitration Review’s “Dealing with the Pandemic” award. Global Arbitration Review is the leading resource on international arbitration and ADR news and community intelligence.

The new "Mediation Facilitation Service" now enables parties to ask SCCA for assistance in facilitating agreement to mediate where there is no existing mediation clause in their contract. SCCA is in a unique position to break the ice and create a bridge between parties where the relationship has broken down or where parties feel uncomfortable to make the first call to propose mediation; something that now is mandatory for certain claims under the new Commercial Court Law. Parties can now access this SCCA service on the SCCA website and engage SCCA for an affordable service fee to provide this service. SCCA carries out up to 5 attempts to reach out (written and telephonically) to the other side for 30 days following the date of the request in compliance with the period promulgated in the Commercial Court Law.

If the other side agrees to mediation, SCCA will initiate the mediation under its SCCA Mediation Rules as modified by EMP. Absent agreement within 30 days, SCCA will issue a letter summarizing its efforts the requesting party can take to court as proof of its attempts to reach out to the other side in an effort to try to mediate the dispute. The SCCA letter includes the date of the request and lists the attempts made by SCCA to contact the other side and what methods have been used. The letter is accompanied by supporting documentation of such correspondence in case the court wishes to obtain proof. In case the other side declines the offer to mediate, SCCA will issue its letter even before the 30-day period expires.

For more information in Arabic and English about EMP and the new Mediation Facilitation Service or how to request the above services, please visit our website at https://sadr.org/emp?lang=en .