1. What is mediation?
Mediation is a way of dispute settlement, except for action and arbitration,that neutral third party assists the parties concerned in seeking for dispute settlement. Mediation shall be performed based on the agreement of the parties concerned voluntarily. After starting mediation procedure, the parties concerned may suspend the mediation procedure at any time. In the process of mediation, the mediator assists the parties concerned in discussing the problems and seeking for feasible solutions, thus reaching a reconciliation agreement good for the parties concerned.
2. What are advantages of mediation?
(1). The parties concerned can build a harmonious and constructive atmosphere;
(2). The parties concerned can settle disputes through friendly negotiation effectively;
(3). Mediation can be started at any stages prior to or in the middle of action or arbitration, with flexible and convenient procedure;
(4). The reconciliation agreement is reached voluntarily, so the parties concerned are willing to abide by the contents of reconciliation agreement;
(5). Compared with action and arbitration, mediation has low cost and short time, and small pressure for the parties concerned;
(6). The contents of reconciliation agreement are confidential, so contents of statement, opinions, suggestions, etc. from the parties concerned and mediator are not allowed to cite in relevant action and arbitration.
3. What kinds of disputes are applicable to mediation?
Various commercial disputes between equal parties can be settled through mediation, for example:
(1). Contract dispute;
(2). Infringement dispute;
(3). Other disputes involving property rights.
4. Is an agreement necessaryprior to application for mediation?
No need. Mediation is voluntary, so the prior mediation agreement between the parties concerned is not necessary condition for the mediation.
5.May the parties concerned entrust attorneys to participate in mediation?
General speaking, mediation needs no attorneys. However, if you think that an attorney can help you know about dispute-concerned applicable laws and prepare for the mediation, you may ask for attorney’s opinions and entrust the attorney to involve in the mediation.
6. What are preparations before mediation?
(1). Know well about background and matters of the dispute;
(2). Take various receivable settlement schemes into consideration in advance;
(3). If necessary, seek for legal opinions in advance;
(4). Arrange relevant personnel who have the power to make decision and a key role in settling the dispute to attend the whole process of mediation.
7. How long does the mediation take?
The time of mediation is related to the following factors:
(1). Quantity and complexity of disputes;
(2). Cooperation and mediation will of the parties concerned;
General speaking, a reconciliation agreement between the parties concerned can be reached through one or more mediation meetings (about several hours each time)
8. How does mediator perform the mediation?
The role of mediator is not to make decisions for the parties concerned, but to assist the parties concerned in judging the situation objectively and finding out the problems and the best solutions. In the process of mediation, mediator will assist the parties concernedin discussing and determining the matters of dispute, discuss actual needs, rights and interests of the parties concerned, enlarge the selection range of settlement schemes and evaluate the best scheme, and work out thereconciliation agreement.
9．What is the purpose to establish GHMMA?
Integrate commercial mediation resources of Guangdong, Hong Kong and Macau, cooperatively promote settlement of commercial dispute through mediation, enhance exchange and cooperation between commercial mediation agencies, and jointly promote commercial mediation service level of Guangdong, Hong Kong and Macau and overall status in Asian-Pacific region.
10. What is scope of service of GHMMA?
(1). Assist the parties concerned in handling commercial disputes through mediation;
(2). Provide recommendation and referral service for the parties concerned who are willing to use mediation service, and transfer cases to GHMMA’s mediation agencies.
(3). Work together with GHMMA’s members to carry out mediation training and mediation service seminars, and enhance the knowledge of mediation from all sectors of society.
11．What is the fee for GHMMA’s mediation service?
The fee for GHMMA’s mediation service is charged according to specific charging method of the mediation agency.
12. How to apply for mediation?
Firstly submit a written Mediation Application Form. Download the template of Mediation Application Form on the website, fill in the form, sign or seal, and then upload it together with related proofs. You also come to GHMMA Secretariat to ask for Mediation Application Form, and fill in the form and then submit it.
If one party concerned applies for the mediation, GHMMA Secretariat will ask for mediation will of other party concerned. If the parties concerned agree to settle the dispute through mediation, GHMMA Secretariat will contact with the parties concerned, assist them in selecting the mediation agency. If the parties concerned fail to reach an agreement in mediation agency, GHMMA Secretariat will appoint the mediation agency to mediate the dispute. After receiving all materials, GHMMA Secretariat transfers the case to the mediation agency selected by the parties concerned or appointed by GHMMA Secretariat according to the mediation procedure of the mediation agency.
The determined mediation agency will contact with the mediator selected by the parties concerned and start the mediation procedure as soon as possible.
13. If one party concerned refuses to perform the reconciliation agreement after successful mediation, what shall the other party concerned do?
Under the circumstance of successful mediation, the parties concerned will form a valid reconciliation agreement. In Chinese mainland, the reconciliation agreement itself has no enforcement. According to the rules of related arbitration organization, the reconciliation agreement can be transferred into arbitration awards or arbitration mediation. For instance, in accordance with the provisions of Article 14 of Mediation Rules of South China International Economic And Trade Arbitration Commission (CIETAC) and the dispute settlement mechanism of “combining mediation and arbitration” specified in Mediation Rules of CIETAC Mediation Centre, under the circumstance of successful mediation, the parties concerned may apply to CIETAC to make the arbitration awards according to the reconciliation agreement quickly, and the award can be enforced in at least 154 countries in accordance with the Convention on the Recognition and Enforcement of Foreign Arbitral Awards. In some extent, it is “Final Award & Global Effectiveness”.