Virgin Islands Mediation Clauses
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How to fill out Mediation Clauses?
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FAQ
Mediation is first and foremost a non-binding procedure. This means that, even though parties have agreed to submit a dispute to mediation, they are not obliged to continue with the mediation process after the first meeting. In this sense, the parties remain always in control of a mediation.
Generally, mediation clauses are enforceable. However, mediation is essentially a consensual process, and a settlement is unlikely if one party is forced to participate. The mediation clause recognizes that both parties have considered, and are open to, the mediation process.
Each mediator is appointed jointly by the parties (Mediation Rule 13(1)). Should the parties not be able to agree on whether to appoint one or two co-mediators within 30 days from the date of registration, the rules stipulate that there will be one mediator who is appointed by party agreement (Mediation Rule 13(2)).
Mediation can be helpful in resolving legal disputes. It is not legally binding unless the parties enter a settlement agreement, also sometimes referred to as a mediation agreement. Mediation can also be legally binding if it is court-ordered.
Mediation does not impose a solution and it is not binding until the parties reach and sign a settlement agreement. If a settlement cannot be reached, the parties are welcome to continue with the arbitration process. Unlike an arbitrator, a mediator has no power to decide a dispute.
