54 July 2013 www.bahrainthismonth.com Given the workload of traditional law courts in most countries, disagreeing parties now prefer the alternative dispute resolution (ADR) process, which takes less time and imposes fewer costs compared to litigation. But above all, what most appeals to feuding parties is the control and confidentiality that ADR offers, believes James MacPherson, CEO, Bahrain Chamber for Dispute Resolution (BCDR)-AAA. “People want no surprises. They want to pick an arbitrator they can trust; they want to decide on the private judge and their lawyer. They even decide upon the applicable law relevant to the subject matter of the dispute and the jurisdiction of this law,” he says. The use of mediation to resolve commercial disputes has picked up in the region. “If you want to proceed without damaging relationships, there is no better way than to sit down with a mediator and reach a comprehensive and mutually agreed-upon resolution. Parties are in control and they only craft deals they believe in and will uphold,” adds James. However, if you are dealing with a party that is incapable or unwilling to negotiate in good faith, arbitration is the best way forward. “In fact, smart businesses always insert a stepped clause which has the benefits of both parties attempting mediation. Then, if a resolution is not reached, the matter is promptly sent to an arbitration process,” he points out. Through its partnership with the American Arbitration Association (AAA), the BCDR offers international and regional businesses purpose-built ADR solutions for the resolution of commercial disputes. A total of 24 cases were filed with the BCDR-AAA last year with claims amounting to more than BD90,000,000. Of this 12 have been concluded so far. This year, 17 cases were registered, a bulk of them from the banking sector, while two originated from the real estate sector, one from telecommunications and another from the employment sector. Two of these have been resolved. James expects to see an increasing number of commercial cases going through the BCDR-AAA in coming years, giving Bahrain the potential to boost its status as a major destination for legal services. Islamic finance is a sphere that BCDR-AAA is trying to engineer solutions. “We’re working to establish a set of mechanisms and services tailored to the demands of this industry. Our careful and deliberative research will help us ensure we deliver exactly what the sector requires and help them avoid inappropriate and costly litigation elsewhere,” he says. Simi Kamboj The ‘out-of-court’ approach has become a popular mechanism in resolving disputes worldwide. James MacPherson tells us why. businessinterview xxxxx If you want to proceed without damaging relationships, there is no better way than to sit down with a mediator and reach a comprehensive and mutually agreed-upon resolution James Macpherson A key focus for the BCDR-AAA currently is the promotion of mediation among family businesses compromising around 5,000 enterprises in the MENA region, owning in excess of US$2 trillion worth assets worldwide. “The Islamic world has long fostered a tradition of conciliation and consensus, the roots of the modern-day mediation mechanism. The privacy and confidentiality of the mediation process has become of great significance to the region’s family businesses, traditionally discrete about their inner workings,” he says. The BCDR-AAA has been holding workshops for family-run businesses, addressing issues such as restructuring and succession planning. Family business push Managing Expectations
RkJQdWJsaXNoZXIy Mjk0MTkxMQ==