Med-Arb

**In plain language.** Med-arb means trying to agree first, with a binding decision waiting if you cannot. It answers the objection that mediation might waste time if the other side is not serious. **The legal meaning.** Med-arb is usually created by contract — a multi-tier or escalation clause requiring the parties to attempt mediation within a defined period before arbitration can be invoked. The Arbitration and Conciliation Act, 1996 supports the reverse sequence too: where parties settle during an arbitration, Section 30 allows the tribunal to record the settlement as an award on agreed terms, which carries full enforceability. **Arb-med-arb.** A variant developed by SIAC with the Singapore International Mediation Centre. Arbitration is formally commenced and then paused for mediation. If mediation settles the dispute, the settlement is recorded as a consent award — enforceable as an arbitral award rather than merely a contract. If mediation fails, the arbitration resumes. **A practical example.** A long-term distribution agreement provides that disputes must first go to mediation for 60 days, and that either party may commence arbitration if mediation has not resolved the matter within that window. A dispute arises, mediation narrows the issues but does not settle everything, and the residual issues proceed to arbitration. **A drafting caution.** Escalation clauses must be time-bound and specific. A vague obligation to attempt to resolve disputes amicably before arbitrating has been held by some courts not to be a genuine condition precedent, which undermines the structure. See the guide to drafting an arbitration clause. **One concern to weigh.** Where the same neutral acts as both mediator and arbitrator, information disclosed confidentially in mediation caucuses may affect their later decision-making. Many practitioners prefer separate neutrals, or the arb-med-arb structure, to avoid this.