ADR in international business disputes: mediation as an example, reality and challenges

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This paper aims to give an overview about mediation as an ADR mechanism that is getting more and more successful. Paying attention to the specific aspects and what makes mediation in international business different from mediation in other domestic disputes, specifically while treating the cultural question. After this introduction to business mediation, we will go ahead to evaluate this dispute settlement tool, what makes it advantageous and what are the challenges that can limit its success and orientate it to the failure.

Keywords : Mediation, Culture, International, Business, Singapore Convention.

It is obvious now for all the stakeholders who are dealing with the classic type of justice namely courts that it is not always a good idea to start a legal proceeding there. Especially when it comes to certain disputes that are in a crucial need for time and flexibility. These disagreements are usually connected to the commercial life and business operations as in those areas the question of rapidity and confidentiality is considered fundamental. Particularly, when we are dealing with cross-borders transactions that can be valued with huge numbers and can not support any delay or disclosure of information. However, when we mention that courts are getting less attractive to parties in dispute, we should also cite that other alternative methods are not immune from criticism as arbitration despite its time saving aspect it costs a lot and it will be a burden for small and emergent businesses. For all what was stated previously, mediation seems to be the “life hack” for those businesses which are looking for a method to make end to their differences more effectively and in flexible and smooth way. The mediator or “internuncius” as called in the Roman civilization could be considered as an eyewitness of the ancient roots of mediation, throughout the history of justice in the world. Furthermore, as relations are always vulnerable to disagreements and because courts in most countries failed to react to the vital need for a reasonable time litigation, ADR in general and mediation specificallyseems to be a highly controversial topic in the next years. Therefore, it is important to study this instrument, its identity,characteristics, and future during the continuous development of international legal frameworks.