Tim Elliott
Welcome to Lawgical, the UAE’s first and still the only regular legal podcast. My name is Tim Elliott, and as always, here with us is our expert, the Managing Partner of the Dubai-based legal firm Yamalova & Plewka, Ludmila Yamalova. Nice to see you again.
Ludmila Yamalova
Good to see you too, Tim. Always great to be chatting with you.
Tim Elliott
In Lawgical and forthcoming episodes, we’re taking a slightly different approach—a more quick-fire question-and-answer format to tackle legal issues. Let us know what you think of these changes. This time, it’s everything you need to know about the UAE mediation law.
Ludmila, let’s start with the basics: what is mediation in legal terms?
Ludmila Yamalova
Mediation in legal terms is a form of alternative dispute resolution (ADR). It’s essentially an alternative to court proceedings. Mediation is less litigious, typically more efficient, and focuses on amicable solutions.
Tim Elliott
Why is mediation important? What makes it relevant in today’s legal landscape?
Ludmila Yamalova
When properly conducted, mediation can be incredibly effective. It’s less contentious than court proceedings and often faster. Mediations are conducted by specialized mediators who are experts in the field related to the dispute. This expertise ensures that the resolution process is targeted and efficient. For instance, mediation is especially beneficial in fields like intellectual property disputes, where specialized knowledge can help resolve issues more effectively.
Tim Elliott
What types of cases are typically referred to mediation?
Ludmila Yamalova
All types of civil and commercial cases can be referred to mediation. Additionally, personal status cases, such as disputes related to divorce settlement agreements or child custody, can also now be referred to mediation. This allows even sensitive and personal matters to benefit from a less adversarial process.
Tim Elliott
So, how does one decide whether to mediate? Is mediation always an option?
Ludmila Yamalova
Mediation is typically conducted when there’s an agreement between the parties to mediate or when a court mandates it. Agreements to mediate can be made in advance as part of a contract or during the course of a dispute. Even in the middle of litigation, parties can decide to pause and attempt mediation.
Tim Elliott
What’s the UAE’s stance on mediation? Are there specific laws governing the process?
Ludmila Yamalova
Yes, the UAE introduced its first formal mediation law in 2021 with Federal Law No. 6 of 2021, titled “Law on Mediation for Settlement of Civil and Commercial Disputes.” In Dubai, we also have Dubai Law No. 18 of 2021, known as the “Dubai Mediation Center Law,” regulating conciliation activities. Additionally, just this year in October 2023, the Dubai International Arbitration Center (DIAC) introduced its own mediation rules.
Tim Elliott
Let’s break down the types of mediation. What’s the difference between judicial and non-judicial mediation?
Ludmila Yamalova
Judicial mediation occurs during court proceedings. It is initiated either by the court’s decision or at the request of the parties. The court supervises the mediation process, and any settlement can be formalized into an enforceable agreement.
Non-judicial mediation happens outside of court. It can occur before a dispute escalates to litigation or as an alternative to judicial mediation. It’s often conducted through mediation centers or independently appointed mediators.
Tim Elliott
What are mediation centers, and how do they function in the UAE?
Ludmila Yamalova
Mediation centers provide a structured forum to conduct and formalize mediation agreements. These centers are licensed and regulated, ensuring mediators meet certain standards. Examples include the DIAC Mediation Center in Dubai, the Amicable Settlement of Disputes Center in Dubai, and the ADGM Arbitration Center in Abu Dhabi.
Tim Elliott
Who can serve as a mediator, and what qualifications are required?
Ludmila Yamalova
Mediators can be natural or juristic persons appointed by the parties or chosen from a registry maintained by mediation centers. Mediators may include retired judges, registered lawyers, or industry experts with specific qualifications. They must adhere to a code of conduct issued by the Ministry of Justice.
Tim Elliott
What does a mediation agreement typically include?
Ludmila Yamalova
A mediation agreement outlines the subject of the dispute, the qualifications of the mediator, the method of mediator appointment, the language of the proceedings, and any other conditions agreed upon by the parties.
Tim Elliott
What’s the expected duration of mediation proceedings?
Ludmila Yamalova
Mediation proceedings are limited to three months from the mediator’s appointment. This can be extended once, for an additional three months, with approval.
Tim Elliott
And what’s the outcome of successful mediation?
Ludmila Yamalova
The outcome is typically a settlement agreement, which is an enforceable legal instrument. This allows parties to skip lengthy court processes and proceed directly to enforcement if any terms are breached.
Tim Elliott
What about the costs? Is mediation an affordable alternative?
Ludmila Yamalova
Yes, mediation is generally more cost-effective than litigation. Special mediators can charge fees up to 5% of the claim amount. Fees for mediators from registered centers are determined by the center and must be paid upfront.
Tim Elliott
You’ve practiced law in the UAE for over 15 years. What’s been your experience with mediation?
Ludmila Yamalova
We’ve successfully mediated numerous cases, including divorce disputes, employment issues, partnership conflicts, and real estate matters. Mediation empowers parties to resolve disputes amicably and focus on practical solutions rather than contentious litigation.
Tim Elliott
To wrap up, what’s your summary of mediation’s benefits?
Ludmila Yamalova
Mediation offers non-contentious, affordable, efficient, and expert-led resolutions. It also provides enforceable agreements, making it a valuable tool for resolving disputes.
Tim Elliott
That’s another edition of Lawgical, covering the UAE’s mediation law. Thank you, Ludmila, for your expertise and insights.
Ludmila Yamalova
Thank you, Tim. Always a pleasure.
Tim Elliott
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