What Are the London Court of International Arbitration (LCIA) Mediation Rules?

It is common for business owners to disagree with another company about business issues. If you cannot immediately resolve this, you become part of a commercial dispute. If you find yourself in a business dispute, reaching an agreement as soon as possible is crucial. For example, you may carry out arbitration proceedings depending on any prior existing contracts, such as an arbitration agreement. One method for disputing parties to a commercial dispute is mediation, an alternative dispute resolution (ADR) process. You may have a prior agreement to use this. If so, the London Court of International Arbitration (LCIA) Mediation Rules may help your business. This article will explain what the LCIA Rules are for your business.

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What is Mediation?

Mediation is a form of ADR which businesses may use to resolve commercial disputes. A third party, neutral to your company and the other party, will facilitate discussions between you to help determine the issue.

There are reasons that you, as a business owner, may choose mediation as your ADR method. For example, mediation:

• is one of the shorter ADR methods;
• can be a cost-effective ADR method, and
• helps preserve the commercial relationship with the party you are in dispute with.

What is the London Court of International Arbitration (LCIA)?

The London Court of International Arbitration (LCIA) is a globally renowned institution which helps businesses like yours carry out commercial dispute resolution. It does this for companies in many countries, so it is not limited to businesses like yours using UK law. The LCIA offers  commercial entities’ alternative dispute resolution (ADR) methods, which include:

• arbitration; and
• mediation.

You do not have to be a member of the LCIA to use their services; instead, you must pay a registration fee. Using their ADR means you have access to expert ADR professionals, such as mediators and arbitrators. 

What are the London Court of International Arbitration (LCIA) Mediation Rules?

If you decide mediation is the right option for your business when using ADR, you should know the LCIA mediation rules. The LCIA allows you access to specialised mediators for your business dispute. You may wish to use these as part of your mediation process. You can do so if:

• your contract with the other party says you will engage in mediation for commercial disputes; or
• where you have no contractual obligation to use mediation but decide to do so during a dispute.

The LCIA mediation rules are a list of 14 articles dealing with rules on mediation. These include, for example, rules of the mediation procedure in terms of the process. For example:

• Article 1 and Article 2 explain about starting mediation, both where there is an agreement in place between the parties to the dispute and where there is not;
• Article 4 details the rules for appointing a mediator;
• Article 6 contains rules on how to conduct the mediation, which includes  the mode of communication with the mediator, such as in-person or virtual conference call; and 
• Article 7 contains rules on the conclusion of mediation.

Technical Mediation Rules Examples

The LCIA mediation rules also contain rules on technical issues of mediation. For example:

• Article 8 explains details about any possible settlement agreements, which includes terms of any dispute settlement;
• Article 9 details rules such as costs of the mediator, for which both parties are jointly and severally liable for
• Article 12 details the rules on confidentiality and privacy, which conclude that there will be no formal transcription for the record of the mediation; and 
• Article 3 contains rules on written communication, which detail that this is usually through electronic communication.

Key Takeaways

When you find yourself in a business dispute, you may choose an alternative dispute resolution process (ADR) such as mediation. Mediation is a facilitative process where a neutral third party helps you decide how to resolve the dispute. The London Court of International Arbitration (LCIA) can be helpful for ADR processes. It is an international body with expertise in mediation. 

The LCIA has mediation rules which you and the other party to the dispute may use for your mediation process. These contain 14 articles and cover the different aspects of the mediation procedure. For example, procedural rules such as Article 4 to appoint a mediator. They also include other rules, such as Article 8 about settlement agreements. 

If you need help understanding the London Court of International Arbitration (LCIA) Mediation Rules, LegalVision’s experienced disputes and litigation solicitors can assist as part of our LegalVision membership. For a low monthly fee, you will have unlimited access to lawyers to answer your questions and draft and review your documents. Call us today on 0808 196 8584 or visit our membership page.