MEDIATION CONFIDENTIALITY AGREEMENT
In the world of litigation and pendency of cases, the need for alternative forms of dispute resolution procedure is becoming popular, as litigation is not the only solution for every problem or grievance. Thus, to lessen the burden upon courts and to make the procedure cost-efficient, parties to any disputes rely upon the method of Mediation before resorting to courts.
Dubai is known as the business hub for investors coming from all around the world. Therefore, in case of any disputes relating to civil or commercial nature effective remedy before resorting to litigation is to settle down the same by way of arbitration or Mediation. Therefore, to secure the confidentially and interest of parties during such alternative dispute resolution methods, agreements play a vital role. Thus, for a better understanding the importance of confidentiality agreements, a brief introduction to Mediation is given below.
What is Mediation?
Contract Negotiation Lawyer states that:
Mediation is one form of Dispute Resolution Method, wherein parties involved in the disputes discuss their stance and grievance with the Mediator (an impartial person appointed by both the parties involved in the dispute). Therefore, the role of Mediator is to assist the parties in settlement. Thus, the nature of mediation proceedings may be formal or informal as it depends upon the parties involved in the dispute
Why Confidentiality is important during Mediation?
Our Contract Negotiation Lawyer states that:
The Confidentiality in Mediation is of utmost importance as it provides various benefits for the parties involved in the disputes, and it also boosts the confidence of the Mediator in giving independent advice. Thus, there are lot many information and Confidentiality documents that are not to be disclosed in litigation before courts but requires a separate approach for settling down of the dispute before the Mediator. Therefore, to resolve the dispute in mediation proceedings, it is essential for the parties in dispute to disclose all the relevant information before the Mediator so that an effective solution can come out. On the other hand it is also important to safeguard the interests of the parties so that in case mediation fails and a dispute is referred to the Court, then information disclosed during mediation proceedings may not be used before the courts.
Our Contract law lawyers states the benefits below:
There are certain benefits of Mediation Confidentiality Agreement:
- Effective in settling down of Disputes.
- Provides Transparency for the parties and Mediator
- Increases integrity of Mediation
- Strengthens level of Trust
- Safeguards the information provided by the parties in case a dispute is referred to litigation before the Courts.
- Increases impartiality and confidence of Mediator
What is the legal framework in UAE regarding Mediation Confidentiality Agreements?
Our Contract Negotiation Lawyer states that:
Mediation and Settlements in Commercial and Civil Disputes are regulated in UAE by Federal Law No. 6 of 2021. This law provides a robust legal framework for Mediation and settling down of disputes in a fast, efficient, and effective manner. Therefore, this law validates the clause of Confidentiality in mediation agreements and ensures that the information or documents exchanged or submitted, or any concessions made during mediation proceedings cannot be used against any party in Court or before any other Forum. Moreover, it also imposes penal sanctions upon the violator for disclosing confidential information or material.
Article 14 of the Federal Law No. 6/2021, termed as Mediation for the Settlement of Civil and Commercial Disputes, clearly states that “Mediation procedures are Confidential” and specifies “procedure or any documents and information submitted, or any agreements or concession made by the Parties, shall not be used against any of them before any court or entity”. Thereby, it means that any agreement executed between the parties regarding Confidentiality of Mediation Proceedings cannot be held to be void and is palpable in the eyes of the law, irrespective of the fact that particular disputes come under the ambit of the above-said law.
What should Mediation Confidentiality Agreement must possess?
Contract Negotiation Lawyer states that:
It is very important to draft Mediation Confidentiality Agreement in such a manner so that all the communications happened during Mediation either telephonically, orally, via email, voice messages, video call, or through documents deemed to be privileged and confidential communication. The art of drafting such agreements is possessed by good commercial contract lawyer.
Our best commercial contract lawyer at Nour Attorneys Law Firm wants to tell you some key points that a Mediation Confidentiality Agreement must possess. The said points are mentioned herein under:
KEY POINTS
- The title of the agreement must be clear.
- There must be correct and complete details of the parties entering the Confidentiality agreement.
- The object of the agreement must be specified.
- The kind and mode of details and communication the parties should not disclose must be clearly defined.
- The applicability of the conditions upon the Mediator.
- There must be equal binding conditions for all the parties signatory to that agreement.
- There must be a specific clause regarding Confidentiality and to what extent it operates.
- There must also be a clause regarding the consequences of breach of such agreement.
- There must be a terms and condition clause for the termination of such an agreement.
- The place of date and day must clearly be mentioned.
Nour Attorneys Law Firm has an expert commercial and business contract law lawyers’ team with extensive experience drafting Mediation Confidentiality Agreements. Therefore, this agreement is considered as one of the most vital pieces of evidence, if there is any violation in regard to information. Moreover, this agreement needs high legal acumen and vigilance while drafting, and our team of lawyers and legal consultants are well equipped with all the skills required in drafting the best agreements.
In case you need any suggestion or help concerning the matters related to the drafting of contract service, you can contact us freely. Our team is fully committed to our clients perform their duty and delivering positive results.
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