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Alternative Dispute Resolution (ADR), a common practice in Petaling Jaya, Malaysia, offers a method of settling civil disputes outside the traditional court system. This typically includes Mediation and Arbitration. Mediation involves a neutral third-party mediator who facilitates discussion between parties to reach a mutually acceptable resolution. Arbitration, on the other hand, includes an arbitrator or arbitral panel making a binding decision after both parties present their case.
Although ADR is a less formal method of dispute resolution, it can still be complex, involving legal terminology and procedures that require professional expertise. A lawyer can provide guidance, explain legal jargon, and assist with paperwork. Furthermore, since the result of an arbitration process is usually binding, having a lawyer ensures your best interests are represented.
ADR including Mediation & Arbitration in Malaysia is governed by the Arbitration Act 2005 (AA 2005), which adopts the UNCITRAL Model Law on International Commercial Arbitration. It applies to both domestic and international arbitration. The Act addresses key areas such as the arbitration agreement, the composition and jurisdiction of the arbitral tribunal, and the recognition and enforcement of awards.
Yes, under the Arbitration Act 2005, all awards passed by an arbitrator are legally binding and enforceable.
No, decisions taken by courts are outside the context of arbitration. Arbitration is only applicable to disputes where both parties have agreed to engage in the process.
While it's not a legal requirement, it's beneficial to have a lawyer for expert advice, since both processes can have long-term legal and financial implications.
The process typically starts with both disputing parties agreeing to attempt ADR, deciding whether to opt for mediation or arbitration, and then engaging a neutral party to oversee proceedings.
Both parties usually agree on a neutral arbitrator or mediator. If they can't agree, the court or an ADR institution can appoint one.
The Malaysian Mediation Centre (MMC) and The Kuala Lumpur Regional Centre for Arbitration (KLRCA) provide resources, training, and ADR services. The Malaysian Bar also offers a directory of ADR practitioners, as well as resources related to ADR.
If you believe you may benefit from ADR, the first step is to consult with a legal professional who specializes in this method of dispute resolution. They can provide advice tailored to your situation. Then, inform the other party of your intent to seek ADR and ensure they agree to this process. Your lawyer can then guide you through the rest of the process, including selecting a mediator or arbitrator and preparing for sessions.
