Mediation as a way to settle a dispute in Singapore

What mediation is

In mediation, the parties meet with a neutral third person, the mediator. The mediator helps each side understand the issues and the other side's position, and guides the discussion towards a solution both can accept. The mediator does not take sides, give legal advice or impose a decision.

Mediation is voluntary. Either party can walk away before a settlement is reached. If no settlement is reached, the dispute can still go to court or arbitration.

Confidential and 'without prejudice'

Mediation is confidential, and discussions take place on a 'without prejudice' basis. In general, this means that what is said cannot be used as evidence if the dispute later goes to court or arbitration. This lets the parties speak more openly.

Where a judge acts as mediator in a court-connected mediation, a different judge will hear the trial if the case does not settle.

Where mediation takes place

Common options include:

• the Singapore Mediation Centre, for many civil and commercial disputes;
• the Singapore International Mediation Centre, mainly for cross-border commercial disputes;
• the State Courts, where a case already in court can be referred to mediation, either at the parties' request or on the court's direction;
• private mediators agreed by the parties.

When to mediate

Mediation can be arranged at any time if both sides agree: before a claim is filed, during the case, or close to trial. The Rules of Court 2021 expect parties to consider amicable resolution, and an unreasonable refusal to try it can affect the costs the court orders.

Mediation works best when both sides are willing to negotiate in good faith. It cannot produce a ruling on a disputed point of law, so it may not suit a case where one side needs a court decision.

What makes a settlement binding

Nothing agreed in mediation binds the parties until it is written up as a settlement agreement and signed. Once signed, it is an enforceable contract.

Under section 12 of the Mediation Act 2017, a settlement can also be recorded as an order of court, so that it can be enforced like a judgment if one side breaks it. This generally requires the mediation to have been run by a designated mediation service provider or conducted by a certified mediator, and the agreement must meet certain formal requirements.

For international commercial disputes, the Singapore Convention on Mediation provides a framework for enforcing mediated settlements across borders.

The role of a lawyer

Parties can bring lawyers to mediation. A lawyer can assess the strength of your position beforehand, so you know what a court might decide if mediation fails, and can help draft a settlement agreement that is clear and enforceable.

Getting advice on your situation

If you are considering mediation, or the other side has proposed it, a lawyer can explain how it would fit with your dispute and help you prepare.