Signing Singapore Convention ‘would cement UK position as global mediation leader’

The announcement comes a month after the Centre for Effective Dispute Resolution (CEDR) published the results from its Tenth Mediation Audit (18 pages / 831KB PDF), which examined how the mediation market has changed in the last two years.

Michael Fletcher of Pinsent Masons said: “It is notable that the CEDR survey, which is referenced in the government’s response to its consultation on joining the convention, found that the civil and commercial mediation market has ‘fully recovered from the slump caused by the pandemic’ and that the field has ‘permanently changed’ in light of online mediation. Given this, and the increased ease of arranging cross-border mediation through online means in the post-pandemic world, it is an opportune time for the UK to signify its support for mediation on the international stage.”

Beth Pendock of Pinsent Masons added that, although some consultation respondents said that effective mechanisms already existed to ensure a settlement agreement can be enforced in the UK, the majority of respondents recognised that joining the Singapore convention would boost the UK’s reputation as a centre for dispute resolution. “Signing up to the convention now - and moving swiftly towards its ratification, as the government’s response suggests it will - would also signify that the UK is a frontrunner in this market.  If the UK were to ratify the convention now, it would be only the 11^th country to do so. It would encourage other countries to do the same, and ratification may well help to build trust and legitimacy around the mediation process,” she said.

Mediation is designed to provide a flexible and cost-effective method for resolving commercial disputes through an interactive, consensual process involving assistance from an impartial third party mediator. Mediation differs from arbitration, under which disputes are resolved by way of a binding ruling from an independent third party arbitrator. Mediation can be used to resolve disputes which would otherwise proceed to a determination, either by an arbitrator or by a judge in court.

The Singapore convention, which opened for signature in August 2019, currently has 55 international signatories and 10 ratifications. It aims to provide reassurance that cross-border mediation outcomes will be recognised and enforced outside of the host jurisdiction. Parties to a settlement agreement which has been signed in one country will be able to enforce or invoke it in another country - provided the country in which enforcement is sought is a member of the convention and the settlement agreement is within the convention’s scope. Convention member states may establish new expedited procedures to give effect to this.

Without the convention, a party wishing to enforce a mediated agreement overseas would first need to obtain a court judgment for breach of that agreement, as they would for any other contract. Whether they could do that in the intended jurisdiction for enforcement, or would have to first obtain a judgment in the host jurisdiction of the mediation and then seek to enforce it overseas, would depend on the applicable rules of court jurisdiction.

Pendock suggested that the political and economic situation in the UK may have also influenced the government’s decision. “In the current climate of increased prices and market uncertainty, many companies may be seeking to avoid undue costs of litigation. The government appears to acknowledge this fact in its conclusions, noting that mediation can support businesses by offering a more cost-effective route to dispute resolution,” she added.

Fletcher agreed with the government’s view that a more unified approach to recognising and enforcing mediated settlement agreements could help “boost confidence” in cross-border trading. “Signing the convention will also reaffirm the UK’s intention to lead on international law-making and it will also support the UK’s reputation and “brand” as a jurisdiction of choice for international dispute resolution,” he said.