The Missing Key to Enforcing Cross-border Mediated Settlement Agreements

As a young lawyer, Allen Choong, a partner practising with Allen & Gledhill and SIMC Specialist Mediator, had a poor experience with mediation. This led him to believe that mediation would never be a viable dispute resolution option. 

Thankfully, this misperception has dissolved with time and experience. When faced with skepticism over the process and finality of settlements, he says, “happily, with the Singapore Convention on Mediation, [mediated settlement agreements] can now be enforced globally.”

Watch the full interview or read the interview transcript below. We thank Allen for sharing his views.

I've come to see the value of third-party intermediaries stepping in to help parties resolve disputes, because they allow the parties to preserve relationships and reduce acrimony.

Mediation in such projects is actually important because the contract itself may last for many years. So to give an example, iIn energy contracts, especially contracts where, for power generation one party is supplying power to an offtaker, the contract itself will last typically 25 years. That's a long period of time. And if a dispute arises in, let's say, year 10. Imagine what will happen if the parties were at loggerheads arising from this dispute and would still have to work together for the next 15 years.

My very first experience with mediation ...

My very first experience with mediation was as a young lawyer.

It involved the sale and purchase of a piece of forest in South America, Guyana to be exact. The transaction fell through and parties started suing each other. So there was a push towards mediation, which we attended, and it failed miserably for various reasons. So as a young lawyer, I came away with the misconception that perhaps mediation didn't really work. However over time in the course of my practice, I've come to see the value of third-party intermediaries stepping in to help parties resolve disputes, because they allow the parties to preserve relationships and reduce acrimony.

With the Singapore Convention on Mediation, (it would) allow you to enforce mediated settlement agreements overseas.”

Addressing the issue of enforcement

One of the key things that parties always tell me is, “I need a solution that can be enforced against another party overseas.”

And for a long time when I broached the issue of mediation, the common refrain I got from these parties was, “is it worthwhile because I can't enforce the mediation settlement against the other party in another country.”

Happily, with the Singapore Convention on Mediation, this has actually allowed me to tell my clients, “look, you don't have to worry about this angle because this Mediation Convention would allow you to enforce mediated settlement agreements overseas.”