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Arbitration and Mediation Definition
Arbitration and mediation are methods of resolving disputes which can provide confidential and cost-effective solutions through processes tailored to the needs of the parties.
Arbitration is regulated in Spain by Act 60/2003 of December 23 as a method of resolving disputes by an independent and impartial arbitrator or arbitral tribunal. Parties typically would agree to leave separate ordinary jurisdiction and to submit a dispute to arbitration by including an arbitration clause in a contract. Arbitration allows the parties to tailor proceedings and to choose the arbitrators, the applicable law, the venue, the language, and the time within which the dispute is to be solved. It generally ends with a binding award issued by the arbitrator, which is enforceable before national courts.
Lawyers advise clients on every step of the arbitration, including the drafting of the arbitration clause, the selection of the arbitrators, the drafting of written submissions, the assistance in the preparation of witnesses’ and experts’ depositions and cross-examinations and the enforcement of the arbitral award. Additionally, lawyers are usually the best qualified to act as arbitrators.
Mediation is a structured process whereby two or more parties attempt to settle a dispute with the assistance of a mediator, who tries to facilitate an agreement. According to Law 5/2012 of July 6, 2012, mediations may be either voluntary (normally as a result of mediation clauses in contracts) or court-mandated. In contrast to arbitration, the parties are entitled to end the mediation process voluntarily at any moment and no agreement may be imposed by the mediator to them. However, if an agreement is reached it shall be binding and enforceable before national courts.
Mediation has had little development in Spain and consequently there are few mediators and mediation specialized counsels. However, the acceptance of mediation as a dispute resolution method has expanded in the past few years and this has resulted in the development of mediation training centers and the increase both of expert mediators and specific mediation practice areas in law firms.