In the event of a serious business dispute, alternative methods of resolution are usually preferable to a court decision.
The International Centre for ADR, part of the globally respected International Chamber of Commerce (ICC), offers support to businesses seeking to resolve disputes out of court. The ICC provides three distinct services related to experts and mediators:
- Proposing experts and mediators (“neutral persons”).
- Appointing experts and mediators.
- Administering expert proceedings.
Importantly, one does not need to be a party to an arbitration proceeding to take advantage of the ICC’s services; there does not need to be an ongoing case before an arbitral tribunal, nor is it necessary to include specific arbitration clauses in contracts.
Firstly, any party independently, even without informing the other, or all the parties jointly, can request the ICC to suggest a suitable expert or mediator. This process is confidential, meaning that if only one party submits the request, the other will not be informed. The applicant is in no way bound to accept the ICC’s proposal.
Secondly, when requested by a party or parties jointly, the ICC can appoint an expert or mediator to resolve a specific dispute. If only one party submits the request, or if the parties cannot agree on the choice of the expert or mediator, the ICC will send a copy of the request to the other party for comments. Under this procedure, the appointment of an expert or mediator is binding on the parties.
In both of the above cases, the applicant defines the specific scope of the expert’s or mediator’s mandate, which can entail providing an opinion on the matter, acting as a mediator, serving on a dispute resolution board (e.g., Dispute Adjudication Boards under FIDIC), or acting as an expert in other proceedings.
In these procedures, the ICC’s role is limited to proposing or appointing the expert or mediator; the parties can then directly contact the experts or mediators and, depending on the circumstances at hand, directly negotiate the scope of their mission and compensation.
Alternatively, the parties may request the ICC to manage the entirety of expert proceedings. In this case, the ICC’s responsibilities include appointing the expert or mediator, coordinating between the parties and the expert or mediator, monitoring deadlines, overseeing costs and, unless explicitly excluded, reviewing the draft expert report. The ICC will also notify the parties of the final report at the conclusion of the proceedings.
Regardless of the service selected, the expert’s findings can be useful for the parties during negotiations to resolve their dispute or differences. Although opinions are generally not binding, the parties may – if they so wish and in accordance with applicable law – agree to be bound by the expert determination made in this process.
The ICC does not maintain a specific list of mediators or experts. Instead, it conducts its searches on a case-by-case basis to identify the most appropriate candidate given the nature of the dispute and the requirements specified by the parties.
Each of the three service options comes at a cost: a non-refundable registration fee of USD 5,000 must be paid in each case alongside the expert’s or mediator’s fees. In the case of the third service option, ICC administration of expert proceedings incurs additional administrative fees ranging from USD 2,500 to USD 50,000, depending on the value of the dispute in question. Preferential financial terms are available for parties involved in an ICC arbitration dispute.
Although the ICC’s services are not the cheapest, having an expert or mediator appointed by a neutral organization can be a good solution when parties wish to optimize the cost and time of dispute resolution, especially in cross-border business relationships (e.g., parties from different jurisdictions) and high-value disputes.