parties have control over both the decision to settle and the terms of any
settlement agreement. In mediation proceedings, parties remain in control of
the outcome by negotiating a contractually binding, win-win agreement based on
their business interests. Since control over the decision to settle and the
terms of any settlement agreement remains with the parties, the mediator has no
power to impose a settlement on the parties but facilitates the parties’
the mediation, the mediator may hold meetings or conference calls with all of the
parties present and may also hold separate meetings or calls with each of the
In the course of the mediation, the parties can exchange settlement proposals,
which may lead to a negotiated agreement. Such proposals can be made directly
between the parties or through the mediator.
Mediation takes usually less
time than arbitration or litigation and involves lower costs. Furthermore, the
process enables parties to reach an agreement on solutions which could not be
achieved through an adjudicative process such as arbitration or litigation and
which would not therefore be available through the making of an arbitral award
or a judicial decision. For example, the parties’ preferred solution to a
contractual dispute may be to renegotiate the terms of the contract. The
renegotiation of a contract is possible in mediation, whereas it is unlikely to
be any legal basis for seeking such relief in arbitration or litigation.
Whilst the adjudicative
processes focus on the parties’ legal rights, mediation helps parties also to
take into consideration commercial and other interests. The mediation process
can help parties acquire a better understanding of each other’s needs and
interests so that they can look for a solution which accommodates these needs
and interests as far as possible. Mediation can be a particularly useful tool
when the parties in dispute have an on-going relationship (such as a joint
venture or long-term supply contract).
Anyone can use ICC Mediation,
whether a company, state, state entity, international organization or
individual. It is not necessary to be an ICC member or to have any other
affiliation with ICC.
Mediations are administered by the ICC International Centre for ADR pursuant to
the ICC Mediation Rules. The Centre is the only body empowered to administer
proceedings under those Rules.