The merits of mediation

The Bahrain Chamber for Dispute Resolution (BCDR) has marked two years since its launch with strong figures released demonstrating the increasing confidence in both alternative dispute resolution in the Middle East and its placing as regional centre of choice.

Since its launch in January 2010, the chamber has looked in to 47 cases (13 cases in 2010 and 34 cases in 2011), with a value of over $1.6 billion ($477 million in 2010 and $1.1 billion in 2011). It expects the total number of cases to double by the end of 2012.

The chamber is a unique partnership with the oldest international dispute resolution centre, the American Arbitration Association (AAA). To mark the occasion, president and CEO of the AAA, William K Slate and senior vice president of the AAA, Richard Naimark, attended a Mediation Roundtable with leading local and international lawyers in Bahrain, in which they discussed how mediation, as an emerging method of resolving disputes, is beginning to receive significant notice around the region.

Mr Slate said: “The BCDR-AAA has made incredible progress in only two years and we continue to be honoured to be in partnership with the chamber as alternative dispute resolution grows internationally. Bahrain, and the wider region, is at the early stages of some real growth in the ADR sector, with some good take-up locally, regionally and around the world.”

James MacPherson, CEO of BCDR-AAA added: “As we enter our third year, our status is fast emerging as the region’s ‘best in class’ in international ADR.

“The number of cases continues to increase, with the number of cases filed doubling year on year. We expect the number to grow even further for 2012. In addition, we have grown as a team; we have vastly increased our pool of mediators and arbitrators, with over 150 trained mediators here in Bahrain and a pool of over 600 arbitrators through our partnership with the AAA.

“Looking forward, our strategy remains to educate – we will continue to forge partnerships with ADR centres around the world, along with leading business institutions and other legal forums in order to share international best practice, educate on the merits of mediation as an alternative to the potentially lengthy and costly litigation process, and to create opportunities for further interaction. 2012 is looking very positive.”

Established through unique ADR legislation, the BCDR-AAA is unique in offering a Free Arbitration Zone, which entitles parties to international disputes that are heard at the BCDR and where the parties involved agree to be bound by the outcome, the award will be guaranteed and not subject to challenge in Bahrain.

This resolves an issue that has been a significant problem in many parts of the world, despite existing international conventions. Bahrain’s Free Arbitration Zone therefore offers certainty to the recognition of arbitration awards, an essential component of modern day commercial transactions.

In another global first, Bahrain also introduced the concept of statutory arbitration for commercial and financial disputes. Cases that would previously have come before Bahrain’s domestic courts, where the claim is over BD500,000 and involves an international party or a party licensed by the Central Bank of Bahrain, are now directed to the BCDR-AAA for final and binding resolution.