If a dispute arises, it is important for companies and other parties to the dispute to be able to choose between different dispute resolution mechanisms. ADR proceedings are generally faster, more flexible and cheaper than state court proceedings. Among the other arguments in favour of choosing an alternative dispute resolution mechanism are that these proceedings are confidential, they aim to maintain existing business relationships, and they have the goal of finding creative solutions to disputes.
The German Arbitration Institute (DIS) offers a portfolio of alternative dispute resolution proceedings from which the parties can select the most suitable type of mechanism for resolving their dispute.
In addition to consensus-oriented methods (mediation, conciliation), decision-oriented types of proceedings (arbitration, adjudication, expertise/expert determination) are also available. The following overview shows the types of proceedings offered by the DIS and the most important features of these mechanisms:
The procedure can be tailored to fit the needs of the parties.
The dispute is decided by an impartial and independent arbitral tribunal consisting of experts in the respective field of legal issues.
Arbitral awards are enforceable worldwide under the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards.
An agreement can be reached quickly and cost-efficiently.
Negotiations are informal and flexible. The parties determine the procedure and its outcome.
The mediator is independent and impartial and helps the parties reach an amicable settlement.
The mediator may assist the parties in reaching a settlement. The settlement is then binding on the parties. A settlement agreement can also be recorded in the form of an arbitral award on agreed terms if mediation is combined with arbitration.
An agreement can be reached quickly and cost-efficiently.
Negotiations are informal and flexible. The parties determine the procedure and its outcome.
The conciliator assists the parties in resolving a dispute by mutual agreement. He or she may issue an opinion on the merits of the case, which may help the parties to reach a settlement. The agreement of the parties is recorded in writing.
The conciliator may assist the parties in reaching a settlement. The settlement is then binding on the parties. A settlement agreement may also be recorded in the form of an arbitral award on agreed terms if conciliation is combined with arbitration.
Adjudicators are experts in the field of the respective (construction) project.
Adjudication is best suited for disputes in connection with and during construction projects.
An adjudicator or a dispute adjudication board (DAB) can provide a provisional or final decision on issues that have arisen in the course of a (construction) project.
A provisional decision is binding until it is revoked or amended by a court, arbitral tribunal or by the adjudicators themselves. An adjudicator or a DAB may assist the parties in reaching a settlement. This settlement is binding on the parties. A settlement agreement may also be recorded in the form of an arbitral award on agreed terms if adjudication is combined with arbitration.
Expert determination proceedings must be completed within six months. However, the parties are free to modify the time limits for submission of written statements by mutual agreement and thus alter the duration of the proceedings.
Depending on the agreement of the parties, expert determination proceedings can be conducted by one or three experts in the field at issue in the dispute.
By means of expert determination proceedings, the parties can resolve disputes in connection with a contract (Main Contract).
The decision is binding on the contracting parties until it is revoked or amended by a court or an arbitral tribunal. A settlement agreement may also be recorded in the form of an arbitral award on agreed terms if expert determination is combined with arbitration.
The proceedings are terminated at the latest six months after commencement.
The parties may jointly nominate an expert with expertise in the field at issue in the dispute.
The subject matter of expert proceedings is solely the disputed issue identified in the request.
The expert’s opinion is non-binding
The Dispute Manager advises and assists the parties in selecting the dispute resolution mechanism best suited to resolve their dispute within a short period of time.
The Dispute Manager is independent and impartial and is familiar with the various dispute resolution mechanisms.
The Dispute Manager has no authority to make a decision on the dispute.