The Singapore International Commercial Court (SICC) and the Singapore International Mediation Centre (SIMC) have collaborated to establish a litigation-mediation-litigation (LML) framework with a view to promoting the amicable resolution of international commercial disputes. Parties may choose to adopt the LML Protocol when contracts are being negotiated by incorporating the model LML Clause into their agreements. Alternatively, parties may by a separate agreement adopt the LML Protocol at any other time, such as after a dispute has arisen.
Taking effect from 12 January 2023, the LML Protocol sets out the procedure under which disputes commenced in the SICC are to be referred to the SIMC for mediation, and the procedure to continue or terminate proceedings in the SICC on the conclusion of the mediation. Amongst other things, the LML Protocol also provides for a case management stay of the SICC proceedings for up to eight weeks after the commencement of mediation, subject to any extension by the Court for good reasons, and the LML Protocol also recognises that the Court may grant interim relief to preserve a party’s rights despite a case management stay.
Parties who have commenced proceedings with the SICC and are not guided by a Litigation-Mediation-Litigation clause in their contract may opt to mediate under this Protocol or be directed by the Court to do so. Upon commencement of mediation at SIMC, SICC may then pause litigation proceedings for up to eight weeks. Most mediations at SIMC take one day and enjoy a 70-80 per cent settlement rate.
If the mediation is successful, parties may choose to have the settlement terms recorded as an order of court. If there is a partial settlement, parties may choose to have the settled items recorded as an order of court and seek SICC’s directions on the conduct of proceedings for the remaining issues, in accordance with the SICC Rules 2021.
For details, please refer to the following:
Other reference materials:
“The LML Protocol provides an integrated option for effective dispute resolution, combining the benefits of mediation such as confidentiality, expediency and creative solutioning, with the reciprocal recognition, registrability and enforceability of an international commercial court order,”
— Chuan Wee Meng, CEO of SIMC
ADVANTAGES OF LIT-MED-LIT
|Provide case management stay of SICC proceedings (up to 8 weeks)
|Access to quality mediators
|Confidentiality and neutrality
|Time and cost savings