Med-arb

Meb-arb is an alternative dispute resolution which consists, at first, to try to settle the dispute through mediation. If mediation partly or entirely fails, the dispute shall then be submitted to arbitration. 

At first, parties shall submit their dispute to mediation. It allows them to maintain a certain freedom, not be constrained, and engage in negotiations in good faith, all with the help of a mediator.

However, mediation is often criticised because, despite a significant commitment of time and money, its outcome is uncertain and the parties are not guaranteed to obtain any results. Some also believe that the parties do not always act in good faith but instead use mediation to crystallise positions in negotiation and to obtain information otherwise unavailable.

In the event of failure of mediation, the dispute shall be submitted to arbitration, therefore, making it possible to counter these criticisms. Parties shall favour, first and foremost, the amicable way. They keep control of the calendar as well as their interests. The prospect of arbitration is likely to compel them to reach an agreement.

However, if mediation fails, parties are still certain to settle their dispute. The second stage of the process, arbitration, guarantees them the settlement of the conflict.

Whether it is at the end of a transaction or the rendering of an award, the parties will therefore obtain a settlement to their dispute. Med-arb, therefore, combines the techniques of mediation and arbitration, thus offering an efficient and flexible process.

The Chamber of Mediation, Conciliation, and Arbitration of Occitanie offers med-arb, whether the mediation is carried out under the aegis of the Chamber or under the aegis of another institution.

 It is recommended that parties wishing to make reference to the Chamber in their contracts use the standard clause below:

1. All disputes arising out of or in connection with the present contract, in particular, any question relating to its existence, negotiation, validity or termination of this contract, shall be finally settled through mediation, under the Rules of mediation of the [indicate institution in charge of mediation] in its [date of Rules] version.
2. If the dispute hasn’t been settled through mediation [in the time limit of ___ days upon receipt of mediation request] / [upon the time limit set by the parties], the dispute shall be settled through arbitration, under the Rules of Arbitration of the Chamber of Mediation, Conciliation, and Arbitration of Occitanie (CMCAO) in its [date of Rules] version.
3. The number of arbitrators shall be [indicate number].
4. The legal place of arbitration shall be at the Secretariat of the Chamber, at 10 Boulevard d’Arcole – 31000 TOULOUSE
5. The language to be used in the arbitration proceedings shall be [...].
6. The award shall be rendered at law and the governing law of the contract shall be the substantive law of […].

Parties are free to adapt the clause to the dispute’s circumstances.

Preamble.

The present Rules shall apply to all med-arb proceedings resulting from a judicial, contractual, or other relationship, or linked to such a relationship when parties, wanting to settle a dispute, have agreed to apply the present Rules.

The dispute shall first be submitted to mediation. If mediation fails, the dispute shall then be submitted to arbitration.

Med-arb, therefore, allows control of deadlines and guarantees a settlement - either amicable or binding. It brings together discreteness, celerity, and efficiency.

Article 1. Definitions  

In the Rules,

(i) “Chamber” refers to the Chamber of Mediation, Conciliation, and Arbitration of Occitanie (CMCAO);

(ii) “file transfer fee” refers to the sum the Chamber shall pay to the institution in charge of the mediation proceedings;

(iii) “Med-arb Committee” refers to the collegial body responsible for implementing the med-arb proceedings - its members are the President of the Chamber, the Secretary, the Treasurer, and the Vice President in charge of the Rules;

(iv) “party(ies)” refers to the parties to the med-arb convention;

(v) “registration fee” refers to the sum to pay for a request for arbitration to be registered;

(vi) “Rules” refers to the Med-arb Rules;

(vii) “Secretariat” refers to the Chamber’s General Secretariat.

Article 2. Med-arb convention  

1. Parties shall agree to resort to med-arb pursuant to either a clause or an agreement.

2. All med-arb proceedings whose organisation of the arbitration is assigned to the Chamber imply acceptance of the parties to these Rules as well as to the Chamber’s Rules of Arbitration.

Article 3. Referral to the Chamber  

1. The dispute shall first be submitted to mediation through a mediation institution.

2. If the mediation fails - partially or thoroughly - the dispute shall be submitted to arbitration under the aegis of the Chamber.

3. Parties shall then submit a joint request to the Secretariat.

4. For the request to be registered, parties shall pay the registration fees amounting to five hundred euros (500 euros).

Article 4. Arbitration proceedings and referrals  

1. The arbitration proceedings shall be conducted in accordance with the Chamber's Arbitration Rules.

2. All provisions of the Arbitration Rules shall apply mutatis mutandis.

Article 5. File transfer fees  

1. When the mediation took place in a mediation institution, the Chamber shall pay the file transfer fees to the institution, upon receipt of the arbitration request.

2. File transfer fees shall amount to two hundred and fifty euros (250 euros).

3. When the mediation took place within the Chamber, no file transfer fees shall be paid.

Article 6. Deadlines  

1. Upon notice of the failure of mediation, the parties shall have a month to refer to the Chamber.

Article 7. Interpretation of the Rules

1. The Med-arb Committee has exclusive jurisdiction to interpret these Rules.

2. In the event of contradictions between the different language versions of these Rules, the French version shall prevail over the translated versions.

Appendices are available in the downloadable version of the Rules.

Med-arb Rules

Download Med-arb Rules