Arbitration & Mediation in Singapore: Options for Expat Dispute Resolution

Singapore has grown into a premier hub for dispute resolution, with numerous contracts designating it as the preferred forum and Singapore law as the governing law. Although litigation continues to be widely used, parties are increasingly choosing Alternative Dispute Resolution (ADR) methods, which provide unique benefits for settling disputes

Arbitration

Arbitration is a form of dispute resolution, where, with the consent of both parties, a dispute is submitted to one or more appointed arbitrators, who make a binding decision on the dispute. The key characteristics and benefits of arbitration are:

1. 1. A key characteristic of arbitration is the privacy of the dispute resolution procedure. This applies when the dispute involves sensitive information that parties would prefer to keep confidential
   2. Arbitration can also be uniquely designed for the respective needs of the parties involved. Parties can select their own arbitrators, and can also select a legal framework and rules of a jurisdiction of their choice. Furthermore, parties can also select only the procedural rules applicable to their dispute, thus removing unnecessary procedural steps.
   3. Arbitration is especially suited for cross-border disputes, as rulings made in one country are often recognised and enforced in other countries.

Mediation

Mediation is a process where a neutral third party is involved in helping the 2 conflicting parties settle their disputes and find common ground. The key characteristics and benefits of Mediation are:

1. 1. Mediation is a confidential process, where parties are offered privacy in the process of dispute resolution. This is especially attractive when the dispute involves sensitive information that both parties agree to keep secret.
   2. Within Mediation, parties are able to explore a variety of possible resolutions based on their specific wants and needs. In this regard, they are not restricted to the ruling of a judge, which often results in monetary compensation. This also allows for parties to be able to broach topics that would not have been relevant during litigation, although still having a significant impact on the dispute. This could include topics regarding emotional or personal grievances.
   3. Normally, Mediation is cheaper than pursuing litigation, allowing for parties to avoid the risk of an increased financial strain. 

Key steps to Arb-Med-Arb

Arb-Med-Arb is a hybrid form of dispute resolution, combining both arbitration and mediation. Parties in the process of arbitration may choose to submit their dispute to mediation at any point before the end of the arbitration. In the case that mediation results in a settlement, the terms can be formalised as a consent award. If no settlement is reached, the parties may proceed with arbitration to resolve the matter. This co-opts the pros garnered by both arbitration and Mediation, but would also involve more procedures than either arbitration or Mediation.