ABOUT MEDIATION
What is Mediation
Mediation is a dynamic, structured, interactive process where a neutral third party assists disputing parties in resolving conflict.
The role of the neutral - the mediator - is to help those involved sort out their issues and arrive at a consensus. That might involve helping parties to finalize an agreement, resolve a dispute, develop effective communication, build or improve relationships, or all of these things. Mediators do not take sides.
Mediation is a confidential process where anything discussed or agreed in private is not disclosed to others without everyone’s agreement.
Where mediation is used to try to avoid or resolve a dispute, and if the mediation does not result in an agreement, the parties can still go to court. Details about what went on at in the mediation will not be disclosed or used at a court hearing.
If mediation successfully resolves the dispute, the mediator will draw up a settlement agreement which will be enforceable by all parties.
Benefit of Mediation
Mediation saves time and money. While the process of the courts can be lengthy and expensive, a mediation may be resolved within a day. The fees of mediation will be shared equally between the parties, unless they agreed otherwise.
Moreover, as mediation is a facilitative process to help parties reach a mutually agreeable solution, they are usually more satisfied with the outcomes and this helps to preserve their relationship.
In addition, the entire process of mediation is confidential.
Settlement Agreement
If the parties have reached an agreement at the mediation, the parties may enter into an agreement called the settlement agreement. The agreement shall be binding, if signed by the parties.
In the event where a party does not fulfil his obligations or breaches its term and conditions, the other party may seek to enforce the terms of the settlement in courts such as breach of contract.
Model Mediation Clause
Any dispute arising out of or in connection with this agreement shall be submitted for mediation at Brunei Darussalam Arbitration Centre in accordance with BDAC’s Mediation Procedure before the matter is submitted for Arbitration under clause ____ . Either/any party may submit a request to mediate to BDAC upon which the other party will be bound to participate in the mediation within [45 days] thereof. Parties to the mediation must be represented by representatives of the Parties with authority to negotiate and settle the dispute. Unless otherwise agreed by the parties, the Mediator(s) will be appointed by BDAC. The mediation will take place in Brunei in the [English] language and the parties agree to be bound by any settlement agreement reached.
Downloadable Document : BDAC Mediation Rules 2025 (25 June 2025)