In its Preamble, ICC ADR Rules stipulate as follows:
“Amicable settlement is a desirable solution for business dispute and differences. It can occur before or during the litigation or arbitration of a dispute and can often be facilitated though the aid of a third party (the “Neutral”) acting in accordance with simple rules. The parties can agree to submit to such rules in their underlying contract or at any other time.”
FIDIC Red Book 1999 provides for an amicable settlement period of 56 days after giving a notice of dissatisfaction with the DB’s Decision and before commencement of arbitration. This is a good opportunity for the parties to try Mediation to achieve an amicable settlement.
Dr. Toshihiko Omoto proposes to the parties the following format for the Mediation:
The above format is very effective for the parties to reach an amicable settlement.
Here, Parties should understand that arbitration and litigation are like a gambling where no one predicts the result correctly. A dispute should be avoided in the first place by use of a Dispute Board and if the parties failed in avoiding disputes and failed in achieving settlement upon DB decision, parties should try Mediation before commencing arbitration or litigation.