Law firm interviewed: Helmsman
Capitalising on its high accessibility, geopolitical neutrality, and stable policy environment, Singapore has been increasingly tapped as a top choice for mediation, a more amicable avenue to resolve contractual conflicts arising from commercial activities.
In August, the city-state hosted a week-long conference to bring together main players in the dispute resolution sphere to explore innovation and the way forward. The Singapore International Mediation Centre (SIMC) occupied a spotlight at the event, having marked its 10th anniversary this year by launching an AI tool to streamline mediation proceedings including automating the presentation of case facts.
Una Khng, commercial disputes director at Helmsman, observes that Singapore's rise as a premier international mediation centre has highlighted mediation as a compelling and economical choice for businesses engaged in commercial disputes.
Khng believes the Singapore Convention on Mediation has served to enhance the enforceability of mediated settlement agreements across borders and contribute to the gaining popularity of mediation as a mode of dispute resolution.
The convention is a multilateral treaty offering a uniform framework for the enforcement and invocation of international settlement agreements resulting from mediation. To date, it has 57 signatories and 14 parties, including the United States, China, India and South Korea. However, the treaty has only entered into force in Belarus, Ecuador, Fiji, Georgia, Honduras, Japan, Kazakhstan, Nigeria, Qatar, Saudi Arabia, Singapore, Sri Lanka, Turkey, and Uruguay.
Khng also sees that tiered dispute resolution clauses, which mandate contract parties to undertake mediation before adjudicatory proceedings, have become more common. “This, together with the duty imposed by the Rules of Court 2021 on parties to consider amicable resolution of their disputes before commencing Court proceedings, have contributed to the trend,” says Khng.
Consequently, Khng’s team has been increasingly advising clients on mediation as a potential dispute resolution option, and mediation strategies in the management of complex commercial disputes.
In such situations, the emphasis of the cases naturally shifts to working together to tackle challenges and explore innovative solutions, as opposed to assigning liabilities in a contentious encounter in courts.
“Clients view legal proceedings as a matter of last resort as such proceedings yield a win-lose outcome that is not necessarily satisfactory to either party. Many clients prefer to explore other possible alternatives first before resorting to legal proceedings. This includes mediation, which offers advantages such as confidentiality, control over the process, and the ability to preserve relationships,” notes Khng.
Historically, mediation was regarded as a straightforward approach focused exclusively on helping conflicting parties reach an agreement. Now, lawyers have observed that the emergence of more adaptable strategies has transformed this field, enabling a blend of techniques that more effectively match the needs of all participants.
“This means that parties may opt for plain vanilla mediation options, but also more flexible options which incorporate mediation into other modes of dispute resolution,” explains Khng.
She highlights two of these other modes. One is “Arb-med-arb” where a dispute is first referred to arbitration before mediation is attempted. If the matter is still unresolved, the parties will return to arbitration to reach a final decision.
“This approach allows parties to benefit from the structured decision-making of arbitration while also having the opportunity to reach a consensual resolution through mediation,” notes Khng.
“Similarly, lit-med-lit involves starting with litigation, moving to mediation, and then returning to litigation if necessary. This hybrid approach can be particularly effective in complex disputes where initial legal positions may be inflexible but where parties are open to negotiation,” she adds.
These flexible approaches have made mediation attractive for parties still engaged in ongoing business relationships. And as Teo points out, the growing popularity of mediation as a dispute resolution revenue is not exclusive to any specific sector. Even when parties fail to completely settle their disagreements through mediation, the process can still yield advantages.
“Parties may be able to agree on certain aspects of their dispute or streamline complex issues for determination in legal proceedings. This could cut down significantly on the time and costs that would otherwise be incurred in a protracted legal battle,” adds Khng.
