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Alternative Dispute Resolution (ADR) encompasses various processes, including mediation and arbitration, to resolve conflicts without resorting to traditional litigation. In Kajang, Malaysia, ADR is becoming increasingly popular as it offers a more streamlined, confidential, and cost-effective approach to dispute resolution. Mediation involves a neutral third-party facilitator who helps the disputing parties come to a mutually agreeable solution. Arbitration, on the other hand, involves an arbitrator or a panel making a binding decision after hearing both sides of the argument.
Individuals and businesses often seek legal assistance in ADR for several reasons:
In Malaysia, the legal framework for ADR, particularly arbitration, is governed by the Arbitration Act 2005, which was substantially modeled after the UNCITRAL Model Law on International Commercial Arbitration. This provides a structured and internationally recognized framework for arbitration practices. Mediation is less regulated but is supported by several institutions such as the Malaysian Mediation Centre (MMC), which provides services and promotes the use of mediation as a dispute resolution method.
Mediation is a voluntary process where a neutral third party facilitates negotiations between disputing parties to help them reach a settlement. Arbitration is a more formal process where an arbitrator (or a panel) hears both sides and makes a binding decision.
Yes, in most cases, both parties have the autonomy to agree on a mediator or arbitrator. If no mutual decision is reached, institutions like the MMC can appoint a suitable professional.
Yes, the decision, known as an arbitral award, is binding and enforceable in courts unless it is appealed on specific legal grounds such as bias or breach of natural justice.
While not mandatory, having a lawyer can be beneficial in navigating the legal intricacies, representing your interests, and ensuring the enforceability of any agreements or decisions.
The duration varies depending on the complexity of the dispute and the willingness of the parties to reach an agreement. Mediation tends to be quicker than arbitration, often resolving in a few sessions.
While ADR is suitable for most civil and commercial disputes, it may not be appropriate for criminal cases or where public policy concerns are involved.
Yes, once a mediation agreement is signed by the involved parties, it becomes a binding contract. Legal recourse is available if the agreement is breached.
Costs are typically shared equally between parties, but the exact division can be stipulated in the ADR agreement or negotiated during the proceedings.
You can approach local bodies like the Malaysian Mediation Centre or the Regional Centre for Arbitration Kuala Lumpur (RCAKL) to find certified professionals.
ADR requires the willingness of all parties to participate. If one party refuses, other legal remedies, such as court litigation, might have to be pursued.
Consider exploring the following resources for more information and assistance:
If you find yourself in need of legal assistance in ADR, consider the following steps:
