The Singapore International Mediation Centre is implementing an expedited mediation process with lower costs for the rest of the year to help businesses ease dispute resolution burdens during the novel coronavirus pandemic.

Under the new COVID-19 protocol, parties start a mediation process within 10 working days after filing a request with an initial S$250 (US$175) fee. The SIMC has implemented a new scale of case fees for disputes based on their values. For disputes with a value below S$1 million (US$700,000), each party will pay S$3,000, which includes fees to mediators. Rates increase incrementally for disputes with a higher dollar value. For cases valued over S$5 million, the organization charges up to S$10,000 in fees.

The new rates represent significant discounts for parties with lower-valued disputes, according to chief executive Chuan Wee Meng, who said the SIMC had previously charged a flat S$6,000 case management fee per party that did not include fees for mediators.

"We hope that this [change] will increase access to mediation for all parties," Chuan said.

The mediation will be conducted online under the new protocol. Chuan said until restrictions on travel and in-person meetings are lifted in Singapore, he expects the mediation process to continue to be carried out online. Singapore has imposed strict limits on in-person gatherings since late March when the country saw a spike of new cases.

Chuan said the new measures aim to help businesses focus resources on other challenges during the pandemic. "During this period of uncertainty, instead of being mired in protracted legal proceedings, businesses could use mediation first to resolve their disputes," he said.

"Many disputes arising from the global pandemic are not the fault of either party. Therefore, mediation stands out as an important mechanism to ensure that relationships are not derailed," he added. "The speed, cost and effectiveness will also ensure that the bottom lines remain intact."

Chuan also added that the new measures, which are effective until Dec. 31, are not only for disputes related to COVID-19 but for all disputes that arise during this time.

The SIMC was formed in 2014 as part of the effort to build the city-state into a regional center of cross-border dispute resolution. The SIMC boasts an 80% success rate for dispute settlement. Mediation settlements are enforceable in Singapore courts.

After September, courts in other countries that have ratified the Singapore Convention on Mediation will be able to enforce SIMC mediations. So far over 50 countries, including the United States and China, have signed the accord; Singapore, Fiji, Qatar and Saudi Arabia have ratified the treaty.*

*May 20 Updated: This story has been updated to include Saudi Arabia in the countries that have ratified the Singapore Convention. 

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