LDC-Alternative Dispute Resolution Module 3- Conciliation.pdf

Alternative Dispute Resolution, Conciliation

1. POST GRADUATE LEGAL STUDIES &
LEGAL AID
ALTERNATIVE DISPUTE RESOLUTION
(ADR)
MODULE 3: CONCILIATION

2. Conciliation

3. CONCILIATION
•GovernedbytheArbitrationandConciliationActbutitis
premisedontheconsentoftheparties.
Section48oftheACA
•Exceptasotherwiseprovidedbyanylawforthetimebeingin
force,andunlessthepartieshaveotherwiseagreed,thisPart
shallapplytoconciliationofdisputesarisingoutofalegal
relationship,whethercontractualornot,andtoallproceedings
relatingtoit.

4. What is Conciliation?
Conciliationrefers to a process through which a third party
provides procedural and/or technical assistance to help
individuals or groups in order to resolve their
problems/Conflict

5. Conciliation
Aprocessinwhichaneutralpersonmeetswiththepartiestoa
disputeandexploreshowthedisputemightberesolved;esp.,a
relativelyunstructuredmethodofdisputeresolutioninwhicha
thirdpartyfacilitatescommunicationbetweenpartiesinan
attempttohelpthemsettletheirdifferences.
Black's Law Dictionary (8th ed. 2004) , Page 873

6. What is Conciliation?
The 2002 UNCITRAL Model Law on International
Commercial Conciliation defines conciliation;
“... a process, whether referred to by the expression conciliation,
mediation or an expression of similar import, whereby parties
request a third person or persons (“the conciliator”) to assist
them in their attempt to reach an amicable settlement of their
dispute arising out of or relating to a contractual or other legal
relationship. The conciliator does not have the authority to
impose upon the parties a solution to the dispute.”

7. Conciliation
•Conciliationissimilartomediationinthatitinvolves
facilitationofnegotiations,buttheconciliatorhasadditional
expertiseandauthority.
•Inconciliation,negotiationsareassistedbyaconciliator.
•Theconciliatorhastechnicalorlegalexpertiseandis
empowered(usuallybylaw)tooffertechnicalandlegal
informationandadviceandevensuggestionsforanoutcome.
MediationSeries:MediationEssentials,ChapterOne,6

8. What is Conciliation?
•Thebroadnatureofthedefinitionindicatesthatthereisno
intentiontodistinguishamongproceduralstylesorapproaches
tomediationorconciliation.
•However,adistinctioncanbefoundbetweenthetwoprocesses
inSection4oftheModelLawwhichstatesthat“The
conciliatormay,atanystageoftheconciliationproceedings,makeproposalsforasettlementofthedispute”
•Similarly,theCentreforEffectiveDisputeResolutioninthe
UnitedKingdomdefinesconciliationas“aprocesswherethe
neutraltakesarelativelyactivistrole,puttingforwardtermsof
settlementoranopiniononthecase.”

9. What is Conciliation?
•Therefore, it can be stated that the conciliator has a more
interventionist role in bringing the two parties together
and can make proposals for settlement to the parties
which they are free to choose to accept or reject.
•Unlike, for example an arbitrator, a conciliator does not
have the power to impose a settlement.

10. What is Conciliation?
Bunni, The FIDIC Forms of Contract (Blackwell
Publishing 3rd ed., 2008) at 445states;
“Conciliation is a more formal process than mediation and it
could generally involve the engagement of legal
representatives, thus making it a more expensive process than
mediation. There is, however, the added advantage that should
no amicable solution be reached, the conciliator has the duty to
attempt to persuade the differing parties to accept his own
solution to the dispute.”

11. Characteristics of Conciliation
•Voluntary:No party is forced to use a conciliator, nor are they
forced to agree to a particular settlement.
•Assisted Negotiation:The conciliator does not decide for the
parties but helps them make their own decision.
•Informal:The proceedings of conciliation are relaxed and
informal.
•Confidential:It is up to the parties to jointly establish any
limits on confidentiality.

12. Conciliation
Third party assisted the negotiation process
Third party impartial to help parties communicate
Parties explore their best options for solutions
Parties are decision makers when reach agreement
Relationship is important
Implementation is on responsibility of parties

13. Main benefits-conciliation
§Conciliation ensures party autonomy.
The parties can choose the timing, language, place, structure and content of the
conciliation proceedings.
•Conciliation ensures the expertise of the decision maker.
The parties are free to select their conciliator. The parties may base their
selection on criteria such as; experience, professional and / or personal expertise,
availability, language and cultural skills. A conciliator should be impartial and
independent.
•Conciliation is time and cost efficient.
Due to the informal and flexible nature of conciliation proceedings, they can be
conducted in a time and cost-efficient manner.
•Conciliation ensures confidentiality.
The parties usually agree on confidentiality. Thus, disputes can be settled
discretely and business secrets will remain confidential.

14. Conciliation
Theconciliatorshallassistthepartiesinanindependent
andimpartialmannerintheirattempttoreachanamicable
settlementoftheirdispute.
Section53(1)ArbitrationandConciliationAct

15. Conciliation-Commencement
•Writteninvitationtoconciliate(S.49ACA)
•Conciliationbeginswithwrittenacceptancetoconciliate
•Ifthepartyrejectstheinvitation,therewillbenoconciliation
proceedings(s.49(3)ACA)
•TheUNICITRALModelLawonInternationalConciliationaddressesthe
principleofselfdeterminationandthesetsoutthat:
•Thepartiesarefreetoagree,byreferencetoasetofrulesor
otherwise,onthemannerinwhichtheconciliationistobeconducted.
•Failingagreementonthemannerinwhichtheconciliationistobe
conducted,theconciliatormayconducttheconciliationproceedings
inthecircumstancesofthecase,anywishesthatthepartiesmay
expressandtheneedforaspeedysettlementofthedispute

16. Basic steps in Conciliation
Part V of the Act provides for the steps to follow in Conciliation proceedings:
§Written invitation for conciliation which is only initiated if the other party
accepts the invitation. (Sec. 49 ACA)
§Similar to arbitration proceedings, the parties appoint a Conciliator (sec. 51
ACA)
§Each party then submits to the Conciliator a brief written statement
describing the general nature of the dispute and the points at issue (Sec. 52
ACA)
§Each party may at his/her own initiative submit to the conciliator
suggestions for the settlement of the dispute (sec. 57)
§Once elements of settlement surface during the course of the proceedings,
the Conciliator helps the parties to draft a settlement agreement, which is
signed by the parties, hence terminating the proceedings.(sec. 58)
§The Settlement agreement also served the same status as an arbitral award
under the Act.(Sec. 59)

17. Conciliation
§Present dispute
§Invitation by one – accepted
§Conciliator’s role – agreement –
§Enforceable

18. Roles and responsibilities
of a conciliator
•Aconciliatorinaconciliationproceedingisaneutraladjudicator
whoseroleistodecideonthecourseoftheproceedings,aidthe
partiesinreachingasettlementthatismutuallybeneficialandto
upholdandabidebytheprinciplesoffairness,neutrality,justice
andobjectivitywhilestrivingtoreachasettlementaswellas
duringthecourseofthedecision-makingprocess.
•TheArbitrationandConciliationAct,bestowsuponthe
conciliatorcertainresponsibilitiesandprovidesforsome
guidelinesthataconciliatorhastofollow

19. Roles and responsibilities of
a conciliator
•Accordingtosection50oftheAct,therecouldeitherbea
soleconciliatorortwoorthreeconciliators,accordingtothe
wishesoftheparties.Incaseofmorethanoneconciliator,
theyshallworkjointlyandincooperationwitheachother.
•Accordingtosection51oftheAct,toconducttheproceedings
oftheconciliation,thepartiesmayappointtheconciliatoror
conciliators,iftherearemorethanone.Whentherearethree
conciliators,thepartiesshallappointthetwoconciliatorsand
they,inturn,shallapointthethirdconciliator.

20. Roles and responsibilities of a
conciliator
Section53oftheACARoleofconciliator.
(1)Theconciliatorshallassistthepartiesinanindependentandimpartialmannerintheirattempttoreachanamicablesettlementoftheirdispute.
(1)Theconciliatorshallbeguidedbyprinciplesofobjectivity,fairnessandjustice,givingconsiderationto,amongotherthings,therightsandobligationsoftheparties,theusagesofthetradeconcernedandthecircumstancessurroundingthedispute,includinganypreviousbusinesspracticesbetweentheparties.
(1)-asettlementofthedisputecanbeproposedbytheconciliatoratanytimewhentheproceedingsarestillinforce.Anysuchsettlementpropositionneednotbeinwritingoraccompaniedbyastatementofreasons,necessarily.(section58ACA)

21. Roles and responsibilities of
a conciliator
(3)Theconciliatormayconducttheconciliationproceedings
insuchamannerasheorsheconsidersappropriate,taking
intoaccountthecircumstancesofthecase,thewishesthe
partiesmayexpress,includinganyrequestbyapartythatthe
conciliatorhearoralstatements,andtheneedforaspeedy
settlementofthedispute.
(4)Theconciliatormay,atanystageoftheconciliation
proceedings,makeproposalsforasettlementofthedispute.
(5)Proposalsmadeundersubsection(4)neednotbein
writingandneednotbeaccompaniedbyastatementofthe
reasonsforthem.

22. Roles and responsibilities of
a conciliator
•Hold meetings with each individual party to discuss how the meeting will go
•Review relevant documents and information to help reach conclusions
•Maintain a neutral position within a meeting to ensure both parties receive
fair considerations
•Allow parties involved to reach their own resolution
•Be prepared to settle disputes by issuing their own resolution, should the
parties ask
•Prepare settlement agreement documents based off of the resolution the
parties reached
•Protect confidentiality regarding the parties, their personal information and
details regarding the dispute

23. CONCILIATION –Cont’d
Section63oftheACA-Costs.
Uponterminationoftheconciliationproceedings,theconciliatorismandatedtofixthecostsoftheconciliationandgivewrittennoticeofittotheparties.
Costsrelateto:
(a)thefeeandexpensesoftheconciliatorandwitnessesrequestedbytheconciliatorwiththeconsentoftheparties;
(b)anyexpertadvicerequestedbytheconciliatorwiththeconsentoftheparties;
(3)Thecostsshallbeborneequallybythepartiesunlessthesettlementagreementprovidesforadifferentapportionment.
(4)Allotherexpensesincurredbyapartyshallbebornebythatparty.

24. CONCILIATION –Cont’d
59.Statusandeffectofsettlementagreement.
Thesettlementagreementshallhavethesamestatusand
effectasifitisanarbitralaward.
62.Resorttoarbitralorjudicialproceedings.
Thepartiesshallnotinitiate,duringtheconciliation
proceedings,anyarbitralorjudicialproceedingsinrespectof
adisputethatisthesubjectmatteroftheconciliation
proceedings.

25. CONCILIATION –Cont’d
Section66oftheACA:Admissibilityofevidenceinother
proceedings.
Thepartiesshallnotrelyonorintroduceasevidenceinarbitralor
judicialproceedings,whetherornotsuchproceedingsrelatetothe
disputethatisthesubjectoftheconciliationproceedings—
a)viewsexpressedorsuggestionsmadebytheotherpartyin
respectofapossiblesettlementofthedispute;
b)admissionsmadebytheotherpartyinthecourseofthe
conciliationproceedings;
c)proposalsmadebytheconciliator;
d)thefactthattheotherpartyhadindicatedhisorherwillingness
toacceptaproposalforsettlementmadebytheconciliator.

26. Admissibility-Conciliation
The UNICITRAL Model Law on International Conciliation sets out the
following forms of communications which are protected under Article 10 of
the Law:
a)an invitation by a party to engage in conciliation proceedings or the fact
that a party was willing to participate in conciliation proceedings;
b)views expressed or suggestions made by a party in the conciliation in
respect of a possible settlement of the dispute;
c)statements or admissions made by a party in the course of the
conciliation proceedings;
d)proposals made by the conciliator;
e)the fact that a party had indicated its willingness to accept a proposal for
settlement made by the conciliator; and
f)a document prepared solely for purposes of the conciliation proceedings.