In the Dominican Republic, if a contract has a binding arbitration clause, can I still request mediation first and what happens if mediation fails?

Yes. Despite the arbitration clause, the parties may initiate a prior mediation procedure. If the parties do not reach an agreement, either of them may then proceed to pursue their claim through arbitration.

I have a commercial dispute with a supplier in the DR. The contract states all disputes must go to arbitration. If I propose mediation first, will that delay or affect the arbitration clause, and who bears mediation costs if we settle?

If, at the time a dispute arises, one of the parties proposes mediation, even though the contract does not provide for it, and the other party agrees, it is understood that both parties are temporarily postponing the initiation of an arbitration claim. In that sense, it could be interpreted that mediation would defer the commencement of arbitration.

If, on the other hand, the arbitration claim has been filed, a party may request to suspend the arbitration in order to engage in a mediation phase, as long as the other party agrees. In such a case, the parties may agree to suspend the arbitration and resume it if the mediation is unsuccessful.

One challenge this may present is that, since the contract does not contemplate mediation, the party who initiated arbitration may be reluctant to engage in mediation. In that scenario, it is very likely that the arbitrators would continue with the process, especially considering that mediation, by definition, must be voluntary and mutually agreed upon by the parties.

Regarding who bears the costs of mediation, the Conciliation and Mediation Rules of the Arbitration Court of the Chamber of Commerce and Production of Santo Domingo state that the costs shall be borne equally by the parties.