Mediation Settlement Agreement in Singapore: An Overview
Mediation is an effective form of dispute resolution that has gained widespread popularity in recent years. It is a voluntary process where parties involved in a dispute appoint a neutral third party to facilitate communication and negotiation to reach a mutually agreeable solution. Mediation Settlement Agreements (MSA) are legally binding documents that record the terms and conditions of the settlement reached in the mediation process.
In Singapore, mediation is a significant part of the alternative dispute resolution landscape. The Singapore Mediation Centre (SMC) is a leading provider of mediation services in the city-state. In fact, SMC was appointed as the default provider of mediation services for commercial disputes in Singapore in 2017.
Benefits of Mediation Settlement Agreement
There are several advantages to opting for mediation as a means of resolving disputes. Firstly, mediation is less expensive and time-consuming than litigation. Secondly, mediation is confidential, and parties can avoid the publicity associated with court proceedings. Thirdly, mediation provides parties with an opportunity to resolve their differences amicably and work towards a mutually agreeable solution.
Mediation can be particularly useful in resolving disputes between parties who have an ongoing business relationship. The collaborative process allows parties to maintain a cordial relationship while resolving their differences.
Process of Mediation Settlement Agreement
The mediation process involves several stages. First, parties agree to mediation and appoint a mediator. The mediator will then facilitate a preliminary discussion session to familiarise parties with the mediation process. During this session, parties will agree on the scope of the dispute, identify the underlying issues and consider potential solutions.
The next stage is the actual mediation session. During this phase, parties will engage in a collaborative discussion to resolve their differences and reach a mutually agreeable solution. The mediator plays an active role in facilitating communication, identifying common ground and exploring potential solutions.
If parties reach a settlement, the mediator will assist them in crafting a Mediation Settlement Agreement (MSA). The MSA will record the terms and conditions of the settlement, including payment terms, timelines and any other relevant details. Once signed, the MSA is a legally binding document.
Enforcing Mediation Settlement Agreement
In Singapore, the law recognises the enforceability of Mediation Settlement Agreements. If parties fail to comply with the terms of the MSA, the other party can seek enforcement through the Singapore courts. This can be done through a summary judgment application or through the mediation/arbitration process set out in the MSA.
Conclusion
Mediation is an effective means of resolving disputes and can provide parties with a cost-effective and time-efficient alternative to litigation. Mediation Settlement Agreements are legally binding documents that record the terms and conditions of the settlement reached in the mediation process. Parties who choose to resolve their disputes through mediation can benefit from maintaining a cordial relationship while working towards an amicable settlement.