ugh mediation can cause procedural delays and additional expenses. Possibility of risking time and cost efficiency of

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3.2.1.From the “
time
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and cost efficiency” perspective Assistance of Arbitral Tribunal for
settlement
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through
mediation
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can cause procedural delays and additional expenses. Possibility of risking
time
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and cost efficiency of the
arbitration
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process is, probably, higher when the mediating
arbitrator
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is not accepted as continuing
arbitrator
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by disputing parties after the unsuccessful
mediation
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session(s). In fact, it would take
time
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to appoint a new
arbitrator
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(during which
time
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the Tribunal is unlikely to be able to provide directions or deal with any interlocutory applications) and, practically, there will be additional costs for getting a new
arbitrator
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up to speed.
Therefore
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, mentioned presumable circumstance proves that the use of hybrid method under the Prague Rules may have “hazardous” effect on the
time
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and cost efficient nature of
arbitration
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method. 3.2.2.From the “party autonomy” perspective: coercing parties to
settlement
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and “facilitation in the shadow of a possible future award” Article 9.1 of the Prague Rules indicates that “Unless one of the parties objects, the arbitral tribunal may assist the parties in reaching an amicable
settlement
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of the
dispute
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at any stage of the
arbitration
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”. It is evident that, by defining “unless one of the parties objects” criteria, the clause again promotes the proactive role of arbitral tribunal rather than the parties explicit agreement and consent.
However
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, in practice
this
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proactivity may have undesirable effect on parties’ willingness to resolve the
dispute
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, especially through hybrid
arbitration
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-concliation proceedings which is possible under the Article 9.1 of the Prague Rules. On the one hand parties may feel coerced into
settlement
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as an undesirable result of mutually agreed
arbitration
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method which is based on the party autonomy principle and,
on the other hand
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, the very fact that the conciliation is conducted by the person who will adjudicate the
dispute
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in the event of failure of the
settlement
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may put pressure on the parties which can
also
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be called as conciliation “in the shadow of a possible future award”. Even most sincere
mediation
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efforts in a combined, med-arb procedure might easily fail if the parties abstain from full participation and disclosure of relevant facts in an open and informal
mediation
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procedure, while being aware that
this
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information can be
further
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used against them in the following
arbitration
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part.
As a result
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, tribunal’s assistance to parties as a facilitator would, probably, be ineffective while parties would reasonably feel coerced to settle the
dispute
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and be reluctant to have unreserved conversations with future decision-maker (assuming that the
mediation
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was unsuccessful and the mediating
arbitrator
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was retained as a member of the Arbitral Tribunal).
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    • Sentence 1 - Topic sentence
    • Sentence 2 - Example
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    • Sentence 1 - Topic sentence
    • Sentence 2 - Example
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