Resources
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Latest News
Presenting the most recent news, developments, and updates in the field of mediation from the MENA region.
The Mediation Committee of the International Bar Association (IBA) has released draft guidelines outlining the use of generative artificial intelligence (AI) in mediation. As AI continues to transform various sectors, these guidelines aim to integrate AI into mediation practices while ensuring that core values like neutrality, confidentiality, and party autonomy remain intact.
Expanding AI’s Role in Mediation
The guidelines highlight various ways AI can enhance the mediation process. AI tools can assist mediators and parties in administrative tasks, such as scheduling meetings, summarizing complex documents, and drafting correspondence. They also offer support in analyzing large volumes of information, identifying patterns, and conducting research. Additionally, AI can improve communication by adapting its outputs to match the communication styles of participants, thus helping build trust and understanding during mediation.
AI's potential goes beyond administrative functions. The guidelines suggest that AI can be used to generate creative solutions during dispute resolution, assist in drafting settlement agreements, and provide real-time insights during mediation sessions. These applications promise to make mediation more efficient, cost-effective, and accessible, opening up new avenues for parties to resolve disputes amicably.
Safeguards for Using AI in Mediation
Recognizing the importance of maintaining the integrity of the mediation process, the guidelines include several safeguards for the use of AI tools. These aim to prevent potential risks such as bias, data breaches, and misuse of AI-generated content. Key safeguards include:
· Consent and Self-Determination Mediators and parties should ensure that the use of AI tools is consensual and does not undermine the voluntary nature of mediation. AI outputs should be treated as recommendations, not authoritative decisions, with human participants retaining control over the final outcomes.
· Confidentiality: Given the sensitive nature of mediation, protecting the confidentiality of information processed by AI is crucial. The guidelines advise using anonymized data where possible and restricting the information shared with AI tools to minimize the risk of unauthorized disclosure.
· Neutrality and Impartiality: The guidelines stress the importance of ensuring that AI use does not compromise the neutrality of mediators. To mitigate this, users are encouraged to frame prompts to AI in a neutral manner and verify outputs for potential biases.
· Balanced Process: Mediators are encouraged to inform participants about the use of AI and to ensure that all parties have an equal opportunity to raise concerns if they believe the AI might be influencing the fairness of the process.
Promoting Transparency with a Sample AI Usage Statement
To facilitate transparency, the guidelines include a sample statement that mediation participants can use to disclose their use of AI tools. The statement outlines which AI tools are being used, their purposes, and the steps taken to comply with data protection laws. This is intended to foster trust among participants and provide clarity about the role of AI in the mediation process.
An Adaptive Framework for Technological Advancements
The guidelines are intended to be a “living document,” open to updates as AI technology progresses and its role in mediation expands. The IBA's Mediation Committee aims to establish a flexible framework that can adapt to emerging challenges while maintaining the fundamental values of mediation.
Anticipating the Future
The release of these draft guidelines comes at a pivotal moment when the legal sector is increasingly adopting AI to improve efficiency and enhance access to justice. By integrating AI into mediation with appropriate safeguards, the IBA seeks to create a pathway for mediators and parties to leverage technological advancements while preserving the essential values that make mediation are liable method for resolving disputes.
The guidelines project a future where mediation is not only more streamlined but also more accessible, allowing for faster and more amicable resolutions. In this framework, AI serves as a valuable support tool rather than a decision-maker. This initiative aims to establish a global standard for the responsible and effective application of AI in mediation, reinforcing the IBA's commitment to innovation and excellence in the legal profession.
To read the full draft guidelines visit:
MC DRAFT AI in Mediation Guidelines.pdf (wsimg.com)
Dubai Courts and Dubai Chambers Sign MOU to Boost Commercial Dispute Resolution
Dubai Courts has signed a Memorandum of Understanding (MoU) with Dubai Chambers to enhance Dubai's position as a global hub for commercial dispute resolution. The agreement focuses on improving mediation and conciliation services, making the dispute resolution process more efficient and legally enforceable.
Under the MoU, Dubai Chambers can electronically register settlement agreements through Dubai Courts' system, ensuring these agreements are binding and enforceable. This integration supports the emirate’s digital transformation goals, aligning with Dubai’s broader vision for economic growth.
Dr. Saif Ghanem Al Suwaidi, Director of Dubai Courts, described the partnership as a significant step toward making Dubai a global leader in commercial dispute resolution, supporting its evolving business needs. Mohammed Ali Rashid Lootah, Director General of Dubai Chambers, highlighted the MoU's role in enhancing the competitiveness of Dubai’s dispute resolution services and aligning with the city's digital strategy.
The partnership supports Dubai's D33 economic agenda, which aims to double the city’s economy over the next decade. By providing efficient and amicable dispute resolution methods, the MoU is expected to attract global businesses and strengthen Dubai's reputation as a top-tier business destination.
To read the full article visit:
Saudi Woman Resolves $10 Million Business Dispute
Ateer Al-Ahmari, a Saudi conflict resolution specialist, successfully mediated a nearly $10 million dispute between two friends, preventing legal action. Through three meetings on the government’s “Taradhi” platform, she facilitated a reconciliation agreement, restoring their friendship. The conflict arose over unsettled business debts, but Al-Ahmari’s efforts led to a mutually acceptable solution. The “Taradhi” platform, part of the Ministry of Justice, promotes amicable resolutions to disputes, allowing parties to meet with mediators to reach agreements efficiently.
To read the full article visit:
UAE Ministerial Decision No. 341 of 2024 Regulates The Role of Mediators in Criminal Cases
In recent years, mediation and conciliation have increasingly been utilized in the UAE to resolve civil and commercial disputes. Parties can choose to engage in mediation voluntarily, or it may be mandated by the Court. For certain types of disputes, the law requires parties to attempt conciliation before initiating a lawsuit. The procedures and rules for mediation and conciliation in civil and commercial matters are governed by Federal Decree Law No. 40 of 2023.
In 2022, the UAE introduced a significant update to its criminal justice system with the enactment of Federal Decree Law No. 38 of 2022, Criminal Procedures Law (CPL).This new legislation brought a notable shift by incorporating reconciliation, mediation, and settlement methods for criminal cases (Articles 348-382). This change promotes alternative approaches to conflict resolution, encouraging more amicable solutions within the criminal justice system.
A key development from the CPL is the empowerment of the Public Prosecution to initiate mediation through a third-party mediator before a case is referred to the Criminal Court. This process, applicable in cases where reconciliation or withdrawal is possible, is voluntary and requires the consent of all parties involved. The Public Prosecution decides whether to pursue mediation based on the case's facts and circumstances, focusing on whether mediation can offer appropriate compensation to the victim or mitigate the crime's impact.
In July 2024, a Decision No. 341 of 2024 was issued by the UAE Minister of Justice to further regulate the role of mediators in criminal cases (Decision). This decision outlines the role of mediators in facilitating disputes between victims and accused individuals under the supervision of the Public Prosecution. The Decision introduce several key elements:
Mediator Qualifications: Article 3 of the Decision specifies initial conditions for mediators to qualify or register. In addition, mediators must complete initial training and participate in regular refresher courses to maintain their skills and ensure compliance with legal standards(Article 6). However, experienced mediators are selected from certain categories based on a decision by the Minister of Justice (Article 4).
Enforcement and Compliance: If a mediator fails to meet their obligations, the competent authority is empowered to take necessary actions against them (Article 10). Additionally, if a mediator loses any of the specified qualifications, their registration may be cancelled (Article 9).Decisions made by the competent unit at the Ministry of Justice can be appealed to the Assistant Undersecretary of the Ministry, as stated in Article 11.
Mediator’s fees: The mediator's fees will be determined in the mediation agreement, considering specific criteria and factors outlined in Article 12. This article also includes a table with fee estimates that vary depending on the type of crime subject of the mediation.
The Decision marks a significant step forward in enhancing the efficiency of the judicial system, promoting justice in a more amicable and tolerant manner. It aims to ensure that mediators are well-qualified and adhere to high professional standards, thereby fostering effective and just resolution of criminal disputes.
Panel Discussion during RIDW 2024 - Mediation as an effective tool to address investment disputes in KSA and the broader region
As part of the Riyadh International Disputes Week, a panel discussion on disputes resolution tools in investment disputes took place on the 7th of March 2024 at Crown Plaza Riyadh.
The Panel constituted of a diverse number of distinguished international experts and mediation enthusiasts: Bryan Clark, Faris Algarni, Tat Lim, Sherif Elnegahy, Sophie Tkemaladze, Ahmed Hamdan and Eleni Charalambidou.
The panel discussion highlighted how mediation can be an effective tool to address various investment disputes especially in KSA and the Arab world in general.
The audience questions and comments were brilliant.
The Saudi Ministry of Investment have graciously sponsored the panel.
Latest Publications
Featuring timely topics in mediation from industry leading experts.
Disputes are common in the highly complex and evolving financial landscape, and the Islamic finance sector is no exception. Operating under distinct Sharia principles, Islamic finance introduces specific challenges when conflicts arise, as ethical considerations and the requirement for fairness guide financial dealings. Mediation, as an efficient and cooperative conflict resolution tool, provides disputants with a non-adversarial method to find common ground and manage their conflicts. In Islamic finance, mediation allows parties to resolve their disputes in a transformative way that is consistent with the Islamic principles while aligning with Islamic values of justice, fairness, and mutual understanding.
Mediation is not only compatible with Islamic finance but is deeply aligned with the ethical teachings of Islam. As a matter of fact, the transformative process of mediation aligns well with Sharia law's emphasis on justice and harmony. Moreover, the five pillars of Islam provide a framework that fosters cooperation, justice, and community welfare—values that are also at the core of conflict resolution through mediation. For example, the principles of patience, fairness, and responsibility within these five pillars, resonate strongly with mediation’s focus on mutual respect, peaceful resolution, and reconciliation. Therefore, resorting to mediation in Islamic finance disputes, can offer a way to settle these disputes while adhering to the fundamental Islamic values.
Through this article, we shall explore how mediation can provide a sharia-compliant method for resolving disputes once applied across key Islamic finance products such as Murabaha, Mudaraba, Ijara, Istisna and Sukuk, to delve afterwards into the important necessity of incorporating mediation clauses in the contractual framework of Islamic finance agreements.
In the context of a Murabaha contract, one of the most used Islamic finance instruments, transparency is essential, as the bank discloses the profit margin to the buyer when selling an asset. Conflicts in Murabaha contracts often arise when there is a disagreement over the terms of the sales or when the assets’ quality are questioned. Mediation ensures that any dispute over the transaction’s transparency is resolved fairly, with both parties agreeing on a solution that is just and in line with Sharia's emphasis on fairness.
For example, if a client purchases machinery through a Murabaha contract and afterwards discovers that it is faulty, mediation provides a way for the parties to discuss compensation or replacement options, avoiding the need for costly litigation and preserving the trust essential to Islamic finance relationships.
Mudaraba contracts, where one party provides capital and the other manages the business, are built on shared risks and profits. Disputes can arise over how profits are distributed, particularly when expectations differ from the actual returns. Mediation offers collaborative environment to address such disputes, helping parties reconsider the terms of their agreement and consequently ensuring that the resolution respects both parties' contributions.
For instance, if the entrepreneur believes their efforts justify a larger share of the profits, mediation allows for a constructive dialogue that leads to an equitable solution and resolution while adhering to the ethical principles of Islamic finance.
In Ijara (leasing) and Istisna (manufacturing) contracts, fairness in transactions is paramount, as Islamic law prohibits exploitation or uncertainty in agreements. Disputes often arise when there is dissatisfaction with the condition of the leased or manufactured goods. Mediation helps both parties find a resolution that respects their rights and obligations while maintaining the ethical standards of Sharia.
For example, if a lessee inan Ijara contract discovers that the leased equipment are faulty, mediation can facilitate a solution that may involve repairs or adjusted terms, ensuring a swift and cooperative outcome that benefits both parties and avoids adversarial legal proceedings.
Sukuk, often referred to as Islamic bonds, are a major financial instrument in Islamic finance. These bonds are asset-backed and structured to be Sharia-compliant, meaning they do not involve interest payments but rather represent ownership in a tangible asset or business. Conflicts in Sukuk often arise over the evaluation of the underlying assets, the management of those assets, or over the profit distributions. In this context, mediation offers a solution by helping bondholders and issuers address their concerns without resorting to court.
For instance, if a dispute arises over the revenue generated by the asset underlying a Sukuk issuance, mediation allows flexible and open dialogue. Both parties can agree on a revised distribution plan or even adjustments to the structure of the Sukuk, ensuring compliance with Islamic ethics and maintaining market stability.
We delved into practical examples of how mediation adds value to some of the major Islamic finance products, and it became clear that mediation offers an ethical and efficient approach to resolving disputes; However, to fully capitalize on these benefits, it is essential to incorporate mediation directly into the contractual framework of Islamic finance agreements.
Embedding mediation clauses into Islamic finance contracts is an essential step toward fostering a cooperative and Sharia-compliant approach to conflict resolution. Mediation clauses serve as a safeguard ensuring that disputes are handled efficiently, avoiding the delays, costs, and adversarial nature of litigation. By incorporating mediation in contracts from the outset, parties commit to resolving potential conflicts in a manner that reflects the ethical values of Islamic standards of fairness, transparency, and cooperation that underpin Islamic finance.
Islamic finance contracts, such as Murabaha, Mudaraba, Ijara, and Sukuk, often involve complex financial arrangements, where disputes can easily arise due to differences in interpretation of terms, unforeseen changes in the market, or disagreements over profit-sharing and asset quality. Including mediation clauses in these contracts guarantees that any conflicts shall be addressed through dialogue and mutual understanding, in line with the Islamic principles of fairness, justice, and cooperation. Furthermore, mediation provides flexibility in resolving conflicts, allowing creative solutions that litigation may not offer.
For instance, mediation can facilitate modifications to contracts or renegotiations of terms, ensuring that both parties find a mutually acceptable solution that not only resolves the dispute but also preserves their long-term business relationship. This is particularly important in Islamic finance, where maintaining trust and ethical standards is paramount.
Mediation clauses serve as well as a risk management tool, ensuring that financial agreements remain stable and that disputes do not escalate into prolonged legal battles that could harm the reputations of both parties involved. By committing to mediation, Islamic financial institutions and their clients demonstrate theirdedication to resolving conflicts in a manner that is both efficient and inharmony with Islamic values.
Mediation offers a Sharia-compliant, ethical way to resolve disputes in the Islamic finance sector. Its emphasis on fairness, cooperation, and reconciliation makes it an ideal conflict resolution tool, particularly for Islamic finance contracts. Through mediation, disputes involving Murabaha, Mudaraba, Ijara, Istisna, and Sukuk contracts can be resolved efficiently while maintaining the trust and integrity that are core to Islamic finance.
How Community Mediation Saved the Olive Tree.
In many Arab communities, when disputes arise, itis common for the parties involved to seek the guidance of a respected elder, community leader, or religious figure to help mediate and resolve the conflict. This tradition of early mediation is deeply rooted in the Arabian culture, where preserving harmony and maintaining relationships are paramount. The modern aspect of mediation involves a neutral third party who facilitates discussions between the disputing parties, helping them to reach a mutually acceptable resolution. In this context, mediation is not just a conflict resolution tool, but it is a means of upholding social cohesion and fostering mutual respect. While the concept of mediation is ancient, modern practices have evolved to include professional community mediators who bring a structured approach to the process. These mediators work alongside traditional figures in the community, providing expertise while respecting cultural norms.
Imagine a close-knit neighborhood in an ancient Arab town, where two families find themselves in conflict over a centuries-old olive tree that stands between their homes. One family is concerned that the tree’s roots are damaging their water pipes, while the other family views the tree as a sacred symbol of their heritage, deeply intertwined with their identity and history. The families initially consider seeking the advice of a community elder, but recognizing the complexities involved, they decide to engage a professional community mediator. Through this mediation, facilitated by someone who understands both the cultural significance of the issue and the technical aspects of the dispute, the families reach an accord. They agree to reinforce the pipes without uprooting the tree, preserving both the integrity of the property and the cultural significance of the olive tree. The mediation not only resolves the issue but also strengthens the bond between the families, leading to a shared commitment to preserving their neighborhood’s rich cultural heritage.
This olive tree scenario reflects the delicate balance between tradition and modernity that is often encountered in communities across the region. Disputes like these - whether they involve neighbors, family members, local communities or businesses - can challenge the harmony that is highly valued in society.
Community mediation addresses a wide range of disputes that can arise in daily life, offering a culturally sensitive approach to resolving conflicts, fostering dialogue and mutual respect while preserving the social fabric and saving the “Olive tree”.
Neighborhood conflicts, such as disagreements over property boundaries, noise, or the use of shared spaces, can quickly escalate if left unaddressed. Big family disputes, particularly those involving land ownership or exploitation, inheritance, marriage require careful handling to maintain family unity and honor. Schools and educational institutions also benefit from mediation, where conflicts between students, parents, and teachers can be resolved in a manner that upholds the dignity of all parties involved. Additionally, small businesses, often family-run, can use mediation to settle disputes that might otherwise damage relationships or reputations.
The advantages of community mediation are particularly significant in this context. It provides a cost-effective alternative to the often expensive and prolonged legal process. The confidentiality of mediation is crucial in a culture where maintaining one’s reputation and social standing is of utmost importance. Since the process is voluntary, it encourages cooperation and ensures that all parties are invested in the outcome. This collaborative approach aligns with the communal values that are deeply rooted in society and therefore protects the sacred “Olive tree”.
One of the most important aspects of community mediation is its ability to preserve relationships. Unlike court battles, which often result in winners and losers, mediation seeks to find common ground, which is essential in maintaining social harmony. This approach not only resolves the immediate conflict but also strengthens the bonds between individuals and families, contributing to the overall stability of the community and preserving the roots of the “Olive tree”.
Returning to our example, the resolution of the olive tree dispute through mediation illustrates the tangible value of this approach. The local communities and families not only found a practical solution but also deepened their respect for each other's cultural values. This outcome demonstrates how mediation can transform potential conflicts into opportunities for greater understanding and cooperation, fostering a sense of unity within the community.
Community mediation is a powerful tool for building stronger, more harmonious communities across the regions. By addressing conflicts with empathy, respect, and an appreciation for cultural values, mediation helps communities overcome challenges and emerge stronger. Amid ongoing disputes over resources, property, and access to services, mediation offers a peaceful alternative to escalation, providing communities with the chance to resolve issues without further deepening divisions. The tangible benefits of community mediation, from avoiding battles to preserving relationships in the midst of strife, are invaluable.
As our societies continue to navigate the complexities of modern life, the role of mediation in fostering peace and understanding will only become more important. In a region marked by the scars of conflict, fostering peace through mediation becomes an essential step towards rebuilding trust, unity and peace. In Lebanon for instance, where the effects of conflict and war conditions continue to devastate the social fabric, the role of mediation is not just important—it is urgent.
When disputes arise consider community mediation-not just as a solution but as an opportunity to heal the wounds that continue to affect our region, an opportunity to build a more connected and cohesive society around the “Olive Tree”.
The Art of Mediation: The Key to Resolving Disputes in the Hospitality Industry
Mediation is transforming dispute resolution in the hospitality industry. The hospitality sector is well-known for its dynamic and complex character, meeting the different requirements and expectations of tourists all over the world. However, the industry faces considerable problems and disagreements, which may have an influence on its image and profitability. In his enlightening book, "The Art of Mediation: The Key to Resolving Disputes in the Hospitality Industry," Mohamed Darwish, a seasoned specialist in company development and legal issues, presents a complete guide to using mediation as an effective alternative to litigation. This study investigates the transformational impact of mediation, provides historical and theological views, and demonstrates how Darwish's skill may change conflict resolution in the hotel industry.
TheEvolution of Hospitality and Dispute Resolution
The notion of hospitality has changed considerably throughout the millennia. Ancient civilizations, like Mesopotamia and Egypt, saw hospitality as a holy responsibility. Mesopotamian laws and Egyptian divine commands produced the first types of hospitality norms, stressing moral and legal responsibilities for visitors. Greek culture developed the notion of "xenia," which emphasized guest protection and respect. The Roman Empire advanced hospitality with sophisticated facilities, establishing early norms for guest treatment.
InJudaism and Christianity, Old Testament teachings stressed the virtue ofhospitality. For example, Abraham's welcome to three visitors in the Book ofGenesis emphasizes the value of gracious hospitality. Similarly, the NewTestament advocates kindness to strangers as a reflection of Christianprinciples, highlighting how such deeds help to develop a loving community.
Al-Wasata(moderation), sulh (reconciliation), and musalaha (amicable resolution) are allexamples of Islamic values that promote hospitality. These concepts areprofoundly ingrained in Islamic culture and serve as a guidepost for fair andrespectful relationships.
ModernChallenges and the Role of Mediation
Thehotel sector of the twenty-first century has several issues, includingoperational complexities, the transition from transactional to relationshipmarketing, and the dual influence of social media. For example, managing guestfeedback and expectations requires a proactive strategy, particularly in an agewhen a single bad review may have a big impact on a hotel's reputation.
Litigationin the hospitality business is increasing, with conflicts involving visitors,travel agencies, and staff. Legal cases such as Best Western International,Inc. v. James Furber and Kenneth Munson v. Del Taco, Inc. demonstrate the highexpense and length of litigation. These disagreements often result inconsiderable legal expenditures and lengthy settlement timelines, emphasizingthe need for alternative dispute resolution (ADR) procedures.
The Benefitsof Mediation
Mediation is a cost-effective and friendly alternative to litigation. It focuses on settling problems via assisted discourse rather than combative processes. Mediation, for example, may resolve both internal issues, such as employee complaints or misunderstandings, and external disagreements, such as owner-operator hotel management agreements.
Darwish highlights the value of mediation in protecting guest relationships, lowering legal expenses, and cultivating a healthy workplace culture. Mediation's flexibility enables individualized solutions that match the requirements of all parties involved, resulting in speedier and more satisfied results than conventional litigation.
Implementing Mediation in the Hospitality Sector
To successfully implement mediation in the hotel business, it is critical to develop clear rules and processes. Darwish calls for specific training to provide hospitality personnel with the skills required for successful mediation. This entails comprehending fundamental concepts like neutrality, impartiality, and secrecy, as well as developing dispute resolution skills.
For example, training may help personnel handle guest concerns in a timely and professional manner, protecting the hotel's image while addressing difficulties quickly. By incorporating mediation strategies into everyday operations, hospitality businesses may increase their conflict resolution skills and overall visitor satisfaction.
Training and Certification
Mohamed Darwish is well-positioned to provide the essential training for hospitality employees, ensuring that they are knowledgeable about mediation tactics specific to the industry. His significant expertise and IMI accreditation establish him as a reputable mediation expert, providing vital insights into the creation and implementation of successful mediation programs. Training programs may cover a wide range of topics, including conflict resolution tactics, mediator selection, and assessment.
Conclusion
Mediation is a valuable tool for resolving conflicts in the hotel business, providing a cost-effective and collaborative approach to conflict resolution. Understanding its historical and cultural origins, as well as establishing effective mediation methods, allows hospitality firms to handle conflicts more quickly and retain their reputations. Mohamed Darwish's mediation knowledge serves as a useful resource for training and establishing effective dispute resolution tactics, eventually improving the hospitality industry's capacity to handle disputes and encourage excellent guest experiences.
Formore information on mediation training and implementation in the hotel sector,or to learn how Mohamed Darwish can help you improve your conflict resolutionprocedures, contact him for professional advice and assistance at m.darwish@darwishadvocates.com.
A Fashionable Conflict Resolution : The Bespoke Approach of Mediation
In the backstage of all that mesmerizing glitter and the luxurious glamour of the fashion industry, conflicts have always been there. Till date, no one can forget the notorious rivalry that burst in the early 1920, between the famous Coco Chanel and the avant-garde surrealist Elsa Schiaparelli; their elegant strifes and glamourous tensions remodeled fashion history. Whether on the runways or even behind the curtains, conflicts were always present in the world of fashion and creation. Amidst the glitter of haute couture, the sparkling universe of creation and the charm of glamourous beauty, an innovative and sophisticated solution transcending the traditional avenues of dispute resolution occurred. This innovative bespoke process is no other than mediation.
The idea of mediation is along-standing concept; however, its implementation as a conflict resolution alternative is relatively new, especially in the fashion world. Nonetheless, mediation proved to be not just a simple trend but a well-established process. One of the iconic cases that embodies and symbolizes the power of mediation in the fashion industry is the dispute between Christian Louboutin and Yves Saint Laurent over the use of red soles on high-heeled shoes.
It all started back in 2011, when Christian Louboutin, a shoe designer renowned for his iconic, red-soled shoes, filed a lawsuit against the well-known brand Yves Saint Laurent, claiming a trademark infringement. The feud between these two fashion titans captivated the industry. The legal battle between these fashion figures threatened to blacken the reputations of both brands and disrupt the fragile and graceful equilibrium of the fashion world. Instead of allowing the dispute to escalate further through lengthy and public litigation, both parties chose mediation in order to find together a solution for their dispute. After a constructive dialogue facilitated by a neutral mediator, Christian Louboutin and Yves Saint Laurent reached a settlement agreement back in 2012.
This landmark agreement was clear evidence that mediation is an effective process resolving complex and intricate disputes combining “legal drama” and haute couture finesse. Mediation is then seen as the promising “couturier” designing a refined bespoke garment or a “sumisura” dress !
In the light of this alluring case, let's explore how mediation, through its delicate tools, can elevate elegance in resolving conflicts within the fashion industry.
1. Confidentiality Couture: Confidentiality and Discretion are the cornerstones of haute couture and fashion designs. And just like this exclusive world of luxury, confidentiality reigns supreme as well in mediation providing a safe and private podium for parties to communicate and resolve their differences away from the public eye. Picture a high-profile dispute between fashion icons over intellectual property rights. Mediation offers a discreet resolution platform, safeguarding the reputation of the brand and the integrity of involved parties, while preserving the mystique and image of the brand in the fashion world.
2. Efficiency in Elegance: Fashion is about trends, and trends are in a perpetual motion of designing, re-styling, and transforming. Time is of the essence in this arena, even when it comes to conflict resolution. In the fast-trend fashion world, mediation is considered the quintessence of efficiency due to its well-designed, structure-tailored, and swift process. Imagine a scenario where a luxury brand finds itself in a contractual dispute with one of its major suppliers due to delivery delays. Through mediation, conflicts are addressed promptly, allowing involved parties to refocus their energies on what truly matters, the creation of exquisite designs and impeccable bespoke craftsmanship.
3. Preserving Relationships: Like a talented seamstress sewing a fine “su misura” garment, mediation delicately weaves a tapestry of understanding, facilitated communication, and cooperation, preserving relationships between stakeholders. Take for instance, the scenario of a luxury fashion house involved in a dispute with its esteemed designer over some creative divergences or other differences. Rather than resorting to adversarial and public litigation, mediation offers a platform for open and private dialogue woven in mutual respect, ensuring that the partnership remains intact, and both parties continue to flourish creatively. We all remember the famous lawsuit between John Galliano and Maison Dior back in 2011, when the latter discharged Galliano after fifteen years of exquisite collaboration with huge media clashes. Mediation could have been the “fil d’Ariane” (Ariane’s thread) that would have carefully stitched this flourishing creative relationship and preserved the mythic image of the brand!
4. Innovative and tailored Solutions: Mediation, just like fashion, offers a new-fashioned bespoke solution tailored to the unique needs and interests of each party. Whether it's a disagreement over a licensing agreement, a breach of contract, or a dispute regarding the ownership of a certain design, mediation adapts to the sophistication of each case, ensuring a customized resolution that resonates with all parties involved. By prioritizing flexibility and individuality, mediation allows stakeholders to find common ground and fashionable solutions that are as unique and distinctive as the garments they create.
In fact, mediation offers innovative solutions beyond the traditional litigation. Consider a simple trademark infringement dispute between luxury retailers, mediation gives parties the opportunity to think outside the box, exploring creative solutions such as cross-promotional campaigns or collaborative design ventures, thereby fostering a spirit of innovation and cooperation within the industry.
The dispute between Gucci and Guess over trademark infringement is a fitted example of how mediation helps parties get to customized tailored solutions.
In fact, back in 2009, Gucci filed a lawsuit against Guess, alleging that Guess had been selling products that imitated Gucci's trademarks and designs, leading to consumer confusion and dilution of Gucci's brand. The legal battle lasted for several years, with both parties engaged in complex litigation proceedings and tabloid headlines. However, in 2012, the two fashion giants opted to resolve their dispute amicably via mediation. Through the transformative process of mediation, Gucci and Guess were able to tailor a bespoke settlement agreement that included financial compensation and a licensing arrangement, allowing Guess to continue selling certain products without infringing on Gucci's trademarks. The Gucci-Guess case demonstrates how mediation can effectively address complex disputes within the fashion industry, offering a time efficient, bespoke-constructive, and harmonious collaborative approach to resolving conflicts while preserving the integrity and reputation of the brands involved.
Through the previous paragraphs, we delved into the benefits of mediation resolving fashion disputes via cases that were in fact submitted to mediation. Yet, the irrefragable proof that mediation does have a considerable input in fashion industry conflict resolution, is in the simulated implementation of this transformative process to an ongoing lawsuit causing a turmoil in the world of fashion and luxury brands industry.
When we think of a contemporary voguish fashion dispute, we likely can’t think but none of the notorious Birkin Bag affair or what I shall refer to as “the Birkin Bag Gate”.
What is the “Birkin Bag Gate” about?
Revered for its impeccable craftsmanship, luxurious items and timeless elegance, the French house of Hermès has been, for decades, a synonym of elite, prestige, and exclusivity. Many luxurious items of the brand are considered as worldwide-coveted, especially the “urban legend” Birkin bag. The Birkin bag is one of the most sought-after items at Hermès. Every worldwide fashion aficionado wishes to own a Birkin due to its unique design but mostly due to its symbol of A-list status.
In the mid of March 2024, the famous luxury retailer, Hermès has found itself at the center of a legal controversy in the United States, after a federal class-action lawsuit filed against it in San Francisco by two individuals. The fashion luxury industry was shocked by the newspapers headlines revealing an accusation of discriminatory practice, market manipulation and antitrust law violation.
The Claimants alleged that Hermès has been engaged in discriminatory acts by only selling its famous Birkin Bags to an elite group of customers who have already spent exorbitant amounts on other items in their boutiques. According to the complaint, access to this most coveted bag is limited to the brand's wealthiest clients. This restriction, which seems to prioritize big spenders, has raised concerns about fairness and equal access to the brand's products. Therefore, the main accusation revolves around an antitrust violation since this “practice” could be seen as a market manipulation and a discrimination against ordinary customers by requiring them to purchase other luxury products before being eligible to buy the Birkin Bag (1).
Considering this “Birkin Bag Gate”, what if, instead of this federal class-action lawsuit, parties decided to solve their dispute in a more timely and amicable manner?
What if they turned to mediation?
And if so, what will be the main benefits of mediation in this case and specifically to Hermès?
Hermès, known for its quality craftsmanship and its heritage in the fashion luxury world, could see its reputation tarnished by the publicity of long litigation proceedings, newspapers headlines and all these allegations accusing the renowned company of establishing a sort of discriminatory elitism and inequality in the fashion industry.
With its constructive tools and transformative techniques, mediation can potentially help the parties solve their dispute by providing them with an open communication platform where they can have a constructive dialogue, allowing them to express their motives, concerns, differences; identify their interests, and explore their options through a facilitated and negotiated dialogue. Mediation will help the parties explore solutions within a cooperative confidential atmosphere, beyond the confines of public legal proceedings and mitigating potential reputational damages.
The confidential aspect of mediation will hold back a possible reputation tarnish, avoid reputational damages, and clarifying the motives behind their internal policies or marketing strategies that are often created by renowned brands such as Hermès, to maintain the prestigious brand’s name and preserve its history.
Mediation can, therefore, with its swift, flexible-constructive process and with its confidential forum, pave the way for a mutually beneficial resolution of the Birkin Bag controversy especially by avoiding the time expense and uncertainty associated with prolonged public litigation proceedings. As mentioned earlier in the Gucci- Guess dispute, mediation can help parties to prioritize flexibility and individuality, allowing stakeholders to find common ground and tailor bespoke solutions that are as unique and distinctive as the Birkin Bag.
This simulated case study demonstrates that if parties chose mediation, they could effectively address their fashionably intricate dispute in a more constructive and collaborative approach, preserving the integrity and reputation of the brand involved, such as the house of Hermès, tailoring and designing “su misura” solutions while respecting mutual interests, market rules and equality law.
In conclusion, mediation is undoubtedly the ultimate tool for resolving conflicts amicably with grace and style leading to a sophisticated, bespoke solution.
So, next time if a conflict arises in the world of fashion, mediation is not just a solution, but it’s a statement, an expression of elegance and refinement that transcends borders and boundaries, uniting disputants in pursuing a confidential excellence, sartorial solution creativity, and haute couture well balanced relationship!
Mediator’s Strategies For Responding to Particular Situations
This article provides an overview of specific situations or challenges that may arise during the mediation process, necessitating the Mediator's use of particular strategies, techniques, and skills. By employing these approaches, the Mediator can effectively address these challenges and steer the mediation process back on track.
1. The decision maker not present in the room
· Requesting a delegation of powers: the Mediator may prior to the commencement of the process, request the attending parties to provide a delegation of authority, to ensure that such representative is able to make or negotiate decisions during the mediation process. In the absence of the same, and depending on the circumstances and particulars of each matter, the Mediator may suggest to the parties that they postpone the commencement of the mediation until such delegation of authority is obtained or the concerned decision maker can attend in person or be available throughout the process. This would help in setting the stage for a productive process and help lead to enforceable agreements.
· Proposing that the representative communicates closely with the decisionmaker throughout the session/process: the Mediator may propose setting up real-time communication channels between the representative and the decision maker to facilitate immediate consultations and decisions during the process. This would enhance the efficiency of the process, and ultimately facilitate the signing of the settlement agreement by the authorized representatives.
2. Non-genuine participation by one or both parties
If the Mediator suspects one of the parties is not genuinely participating, he/she should emphasize the advantages of genuine engagement in the process, highlighting the potential for a more satisfactory and sustainable resolution through active involvement. For example, the Mediator could highlight the potential cost savings, time efficiency, confidentiality, flexibility, and party autonomy that mediation offers compared to other dispute resolution methods. The Mediator should emphasize that the parties maintain greater control over the outcome of the process and may preserve their relationship (if that is of interest to the parties)which could be damaged in a litigation or arbitration process.
The Mediator should gently probe the parties’ reasons for their disengagement and address any underlying issues and needs that may be hindering their willingness to genuinely participate, and help them explore creative and mutually beneficial solutions that may not be available in court or arbitration.
3. One or both of the lawyers are resisting the process or have interest to take the case to Court
· Communicating with the parties separately: if the Mediator believes that the lawyer of one of the parties is just using the process for ticking the box, it is advisable that the Mediator meets with the parties without their lawyers and vice versa. In doing so, the Mediator could check the party's level of commitment and readiness for mediation, and address any concerns or barriers that may prevent them from engaging in the process. The Mediator could also use this opportunity to build rapport and trust with the parties, and to educate them and/or their lawyers about the mediation process and their role init.
· Managing the lawyers’ role: the Mediator can shed light on the importance of the lawyer's role in the process and in reaching a resolution and encourage them to play an active and constructive role in the process. For instance, the Mediator could ask the lawyers and their clients to prepare a list of their interests and priorities, and to brainstorm some possible options or scenarios that could satisfy both parties. The Mediator could also invite the lawyers to share their legal expertise and advice with the Mediator and the other party, and to assist their clients in evaluating the risks and benefits of various proposals. The Mediator could also acknowledge and appreciate the lawyers’ contribution and cooperation in the mediation process, and emphasize the value of their professional relationship with their clients, and praising them for their valuable work, if appropriate.
4. Power Imbalance between the parties
· The extent of the Mediator’s involvement: the Mediator should provide the weaker party with resources or information to level the playing field. The Mediator could help the weaker party prepare for mediation by providing them with guidance on how to articulate their interests, needs and goals, and how to evaluate their options and alternatives. This would enhance the weaker party's confidence and competence in the mediation process. However, such resources or information should not favor one party over the other but should rather aim to make the negotiation more balanced and informed.
Additionally, the Mediator could use caucuses or private meetings to explore the parties' motivations, concerns and expectations, and to address any power-related issues that may hinder the communication or cooperation between the parties. This would allow the Mediator to intervene in a subtle and supportive way to balance the power dynamics and to facilitate the dialogue and the problem-solving. The Mediator will then ensure that both parties are participating effectively in the mediation process. However, it is crucial that the Mediator maintains neutrality and impartiality while managing power imbalances.
· Granting equal opportunities to speak: the Mediator should ensure that both parties are given equal opportunity to speak and contribute. Furthermore, the Mediator could use active listening and paraphrasing techniques to demonstrate that he/she is paying attention and understands the parties' perspectives and emotions, and ensure that the speaking party’s message has been received. This would validate the parties' feelings and views and encourage them to listen to each other as well. Additionally, the Mediator could use open-ended questions and reframing techniques to elicit the parties' interests and needs, and to restate their positions or statements in a more constructive and positive way.
By using these technics, the Mediator will help the parties clarify their issues and focus on the common grounds and the possible solutions. It will also ensure fairness and effectiveness and help build trust in the mediation process. However, the Mediator should always ensure not to be judgmental (i.e. forming or expressing personal opinions or judgments) about what is being said by any of the parties.
5. Party’s make premature concession or committing to an unachievable/unrealistic position
· Calling for caucus or private meeting: the purpose of which is to discuss the implications of the parties’ concessions or unrealistic positions, and allowing them to vent and express their feelings (or frustrations) openly without the fear of weakening their negotiating position. In addition to allowing the parties to vent, the Mediator can also use the caucus or private meetings to explore the underlying interests, concerns or needs of the parties, and to identify any hidden or non-monetary issues that may be influencing their concessions or unrealistic positions. The Mediator can also use the caucus or private meetings to attempt to find areas of agreement amongst the parties and to help them generate alternative options or scenarios that may be more realistic or acceptable to both sides, as well as to test the parties' willingness and ability to implement them.
· Conducting a reality testing for the party’s position: this can be done through exploring the practicality and implications of the positions or concessions. In this tactic, the Mediator will use open ended questions to enable the party to understand the unreasonableness of their position. The Mediator may also allow the attorney and client to confer and rethink their position. Such tactics would lead to a more informed decision-making process. In addition to using open-ended questions, the Mediator can also use hypothetical questions by challenging the parties’ assumptions and expectations to help them evaluate the risks and benefits of their offers, positions or concession(s), such as:
- “How do you think the other party might react if they find your opening offer too extreme, disrespectful or humiliating?”
- “What might be the consequences if your initial offer is perceived as unreasonable by the other party?”,
- “What if the other party does not agree with your proposal?”; or
- “What if the court decide differently?”
The Mediator can also use objective criteria, such as legal standards, market values, expert opinions, or industry norms, to provide a neutral and credible basis for assessing the reasonableness of the party's position or concession, and to encourage them to move towards a more realistic or fair range.
· Normalizing the dance: the Mediator should explain to the parties not to (that they can’t)short-circuit the dance, by explaining to them more about the negotiation process and that negotiation involves give and take. Thus, encouraging them to adopt a more reasonable stance. The Mediator could also help the parties save face while making concessions. The Mediator should ensure that the party maintains its dignity and does not feel defeated while making the offer. The Mediator can frame such offer in a way that the decisions being made lead to a beneficial compromise, thus facilitating a more informed decision-making process.
6. Internally or externally imposed deadlines
· Reminding the parties of relevant deadlines: the Mediator should make the parties aware and remind them of the existence of a deadline or the consequences of not adhering to such deadline.
· Avoiding the disclosure of hidden or unilateral deadlines: while the Mediator is encouraged to use deadlines as time constraint to urge the parties to settle, the Mediator should be careful not to disclose/reveal a unilateral or hidden deadline that one party confidentially disclosed to the Mediator.
· Managing power imbalance resulting from unilateral deadlines: when a deadline is relevant to one of the parties and not both, the Mediator should be careful that deadlines do not create power imbalance in the relationship between the parties. Thus, the Mediator’s role in such a scenario is to skilfully manage the power dynamics.
· Encouraging the parties to set deadlines: if there are no deadlines, it is advisable for the Mediator to encourage the parties to establish such deadlines unilaterally or jointly to enhance the outcomes of the negotiation. The Mediator is advised to do this in a caucus or a private meeting while being careful that such move does not jeopardize the Mediator’s neutrality. Jointly established deadlines are more desirable in this case, as this would create a sense of shared purpose amongst the parties.
· Breaking a hard position under a strict deadline: if one of the parties maintains a hard position and delays concession under a harsh deadline which may result in serious consequences to costs, some of the strategies that the Mediator should use: (i) notice the pattern and name the tactic in private or in joint session. This would require the Mediator to identify and address the negotiation tactics being used and make the party aware of its behavior and its effects on the negotiation process; (ii) reality testing for the tactic in private. This would involve the Mediator discussing the possible outcomes and realistic expectations with the party showing a hard position or resisting concession; and (iii) help the parties save face while making concessions.
7. Intense emotions involved
· Acknowledgment of emotions: the Mediator should acknowledge the parties’ emotions by simply recognizing, understanding and respecting their emotions without sympathizing with, judging or minimizing them. This can help the parties feel heard and acknowledged, and reduce defensiveness and hostility. The Mediator should also monitor his/her own emotions and reactions, and avoid being influenced or triggered by the parties' emotions. This can help the Mediator maintain neutrality and professionalism, and prevent escalation of the conflict or losing credibility.
· Creating rapport with the parties: create a safe environment for the parties to enable them to express their emotions. This would naturally come after the Mediator has built rapport with the parties during the communication and exploration phase, which normally occur during the joint sessions, by using key communication techniques such as body language, reflective listening, active listening, and breaking communication barriers.
Furthermore, the Mediator should establish ground rules and norms for the mediation process, such as confidentiality, respect, and civility, and enforce them consistently and fairly. This can help the parties feel safe and comfortable to share their emotions and perspectives, and prevent disruptive or abusive behaviors.
The Mediator should also use humor, empathy, and positive feedback to create a more relaxed and cooperative atmosphere, and to reinforce the parties' efforts and achievements. This can help the parties feel at ease and motivated to engage in the mediation process, and to build trust and rapport with the Mediator and each other.
· Separating people from the problem: the Mediator may help the parties direct their emotions towards productive problem solving. The Mediator plays an essential role in depersonalizing a party’s problem, making sure to preserve such party’s dignity. The Mediator should separate people from the problem and try to understand their underlying interests and needs, such as why things are important, what are the key concerns, and why a party wants what it is asking for.
Moreover, the Mediator should assist the parties in reframing their emotions from positions or demands to interests or needs, and to identify and address the underlying sources of their emotions. This can help the parties move from a competitive or adversarial mindset to a collaborative or integrative one.
8. Situations where beliefs, values and morals are relevant
· Appealing to beliefs: the Mediator could help the parties reach an agreement by appealing to their beliefs, values or morals. The Mediator may also seek to identify and emphasize on the shared beliefs, values or morals of the parties that can serve as a basis for an agreement.
· Turning the beliefs into interests and needs: the Mediators could help turn such beliefs, values or morals into tangible interests and needs. The Mediator should uncover the underlying interests of the parties that drive the parties’ positions. This normally happens when a party holds strong beliefs which may sometimes cloud its ability to see beyond its own perspective.
· Changing the parties’ relationship: the Mediator should focus on changing the parties’ relationship and not their beliefs or values. The Mediator’s role would be in this case to encourage discussions that enhance mutual respect and understanding amongst the parties. For instance, the Mediator may focus not only on reaching a mutually acceptable solution but also on transforming the relationship between the parties by; for example, assisting the parties to improve their communication, and understanding and interaction with each other.
· Mediating across generations or different nationalities or cultures: an effective Mediator should be sensitive to the diverse perspectives that the different participants/parties bring to the table, by avoiding stereotyping participants on this basis. Thus, a Mediator should be culturally competent, and capable of understanding how cultural differences can affect the communication styles, the approaches and perceptions of the parties.
The Mediator should also respect the diversity of the participants. This involves recognizing and valuing the unique insights and viewpoints that each party brings to the mediation.
9. Mediator accused of being biased
· Inviting the parties to share their perspective and expectations: the Mediator should invite the party who accuses him/her of being biased to share their perspective and expectations of the mediation process and the Mediator's role. The Mediator should listen actively and respectfully to the party's concerns and acknowledge their feelings. The Mediator should also ask the other party to share their views and experiences of the mediation process and the Mediator's role and clarify any misunderstandings about his/her role. The Mediator should aim to create a dialogue between the parties that fosters mutual understanding and trust.
· Affirming his/her neutrality: after hearing the party’s perspective and clarify any misunderstanding about his/her role, the Mediator should reaffirm his/her neutrality and openly address the specific concerns about his/her bias or fairness by reaffirming his/her commitment to neutrality. The Mediator should explain to the parties that he/she is bound or inclined to follow as they are guided by the set of ethical standards for mediators which may be applicable on him/her and which professional mediators should adhere to. The Mediator can always refer to such ethical principles/standards to explain why they are conducting the mediation in a particular way.
The above provides a brief overview of some of the many challenges and situations a Mediator may encounter during mediation. The examples and strategies discussed are just a few among many that a Mediator may employ, varying according to the Mediator’s unique style.
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