Mediation and Hybrid Methods on the Rise
The 2024 International Dispute Resolution Survey conducted by the Singapore International Dispute Resolution Academy (SIDRA) has highlighted user preferences and satisfaction levels regarding international commercial dispute resolution methods. This comprehensive study covers the latest developments in mediation, arbitration, hybrid (mixed-mode) resolution methods, and investor-state dispute settlement, offering significant insights into the future of the sector.
The survey reveals that mediation and hybrid resolution methods stand out due to their advantages in terms of speed and cost-effectiveness in resolving trade, investment, and technology disputes. Conversely, demand for arbitration and international litigation has shown signs of slowing, with users reporting lower satisfaction in terms of cost and speed.
Key Findings
- International Commercial Mediation: Highest Satisfaction Levels
- According to the survey, users of international commercial mediation report the highest satisfaction levels in terms of speed (83%) and cost-effectiveness (75%). Users view mediation processes as more flexible and faster solutions.
- In contrast, satisfaction with international commercial arbitration is much lower, with only 30% satisfied with costs and 42% with speed. For litigation, these figures are 45% for costs and 36% for speed.
- Hybrid Solutions in Investor-State Disputes
- Hybrid (mixed-mode) solutions are increasingly favored for resolving investor-state disputes. Survey participants indicated that hybrid solutions facilitate better agreements between parties and help expedite the process.
- Although arbitration remains the most frequently used method for investor-state disputes, there is growing interest in integrating mediation and hybrid solutions.
- International Commercial Arbitration and Litigation: Lower Satisfaction in Cost and Speed
- While arbitration is valued for its confidentiality and direct enforceability, users are increasingly dissatisfied due to high costs and lengthy procedures.
- In litigation, respondents appreciate the impartiality and enforceability but express lower satisfaction due to high ancillary costs and limited access to specialized arbitrators or judges, which negatively affects satisfaction levels.
- The Rise of Mediation in Technology and Intellectual Property Disputes
- For the first time, the survey examines technology and intellectual property (IP) disputes, reflecting an increased demand for new ADR methods. Although litigation is generally preferred for technology and IP disputes, the use of mediation is growing in these areas.
- Mediation is particularly preferred for lower-value and less complex disputes as a fast and cost-effective solution. Survey participants report an increased preference for mediation and hybrid solutions in resolving technology-related disputes.
- Calls for Diversity and Inclusion
- Participants are calling for greater diversity in dispute resolution processes. In particular, respondents expressed the need for balanced representation concerning ethnicity, gender, and age in selecting mediators and arbitrators.
- This finding suggests that sector-wide reforms are needed to enhance inclusivity and diversity in international dispute resolution.
Technology and Hybrid Solutions Stand Out
The findings of the SIDRA Survey show a steady increase in the integration of technology into ADR processes and an increased acceptance of hybrid methods among users. Hybrid solutions combine the advantages of mediation and arbitration, providing users with faster and more flexible outcomes. The survey indicates that hybrid models are increasingly preferred for international commercial disputes and that digital transformation is leaving a lasting impact on ADR processes.
Implications for the Future
The 2024 SIDRA Survey underscores the importance of mediation and hybrid methods in international commercial dispute resolution, while also highlighting a decline in interest in traditional litigation and arbitration processes. Users are increasingly drawn to ADR methods that prioritize speed, cost-effectiveness, and flexibility. Technology-driven processes and methods that promote inclusivity will likely become key elements in the ADR field’s future.
The full report can be accessed at the following link.
