An overview of our processes

NZDRC offers a number of dispute resolution processes to resolve your dispute.

Arbitration

Arbitration is a formal dispute resolution process where two or more parties agree to submit all or certain disputes between them to an independent person called an arbitrator. Arbitration is entered into by agreement and the process is governed by the Arbitration Act 1996 and the Arbitration Amendment Act 2007.

An arbitrator’s decision, called an award, is binding on the parties and is enforceable as a judgment of the Court.

Mediation

Mediation is a consensual, confidential, and relatively informal negotiation process in which parties to a dispute use the services of a skilled and independent third party called a mediator to assist them to define the issues in dispute, to develop and explore settlement options, to assess the implications of settlement options and to negotiate a mutually acceptable settlement of that dispute which meets their interests and needs.

Generally, any agreement reached will be recorded in writing and will be binding on the parties. Any party to such an agreement may enforce its terms by issuing court proceedings.

Mediation has the advantage of assisting in repairing and/or preserving business relationships where adversarial proceedings may not. Mediation is a particularly effective process in circumstances where there needs to be an ongoing relationship between the parties.

Arb-med

Arb-Med is a hybrid dispute resolution process that combines the benefits of arbitration and mediation, including: speed, procedural flexibility, confidentiality, choice of decision maker, ease of access to the tribunal, continuity, finality, and enforceability of the outcome.

The primary objective of Arb-Med is the informed good faith negotiation and settlement of the dispute by the parties, with the initial assistance and efficiency of the Arbitral Tribunal’s information gathering powers, in the context of a formal arbitration process that will immediately resume if the mediation that follows is not successful.

Adjudication

Adjudication provides parties to a dispute with a cost-effective but robust dispute resolution process that results in a determination being made by an independent adjudicator, typically within 35 working days.

Contractual Adjudication offers a proportionate and fast-track dispute resolution process with the primary purpose of improving cashflow, whilst providing quick and relatively inexpensive access to justice, alleviating pressure on the Courts.

Expert determination

Expert determination is a simple means of binding dispute resolution. Expert determination is a consensual, confidential and relatively informal process whereby parties to a contract agree to refer matters in dispute to an independent person to decide. The independent person is selected because the person is respected as having expertise relevant to the matters in dispute between the parties.

Expert Determination can provide either a binding or non-binding determination (subject to agreement by the parties) without involving many of the formalities that can beset more formal processes such as arbitration and litigation.

A determination which the parties have agreed shall be binding on them may be enforced by a party to the process issuing court proceedings.

Expert determination also has the advantage of assisting in preserving business relationships where strictly adversarial proceedings may not.

Early neutral evaluation​

Early Neutral Evaluation is a confidential, settlement oriented dispute resolution process that produces a non-binding evaluation of the facts, evidence and legal merits of a case by an independent neutral third party.

The objective of Early Neutral Evaluation is to position the case for early resolution by settlement or trial by providing the parties with guidance as to the likely outcome if the dispute were to be heard by a court in the form of an independent Evaluation of the facts, evidence, and legal merits of the matters in dispute.

Although settlement is not the primary objective, the purpose of Early Neutral Evaluation is to promote settlement discussions at an early stage in the litigation process, or at the very least to assist parties to avoid the significant time and expense associated with further steps in litigation.

Conflict management

Conflict management services include organisational performance audits, conflict management coaching, the development and implementation of integrated conflict management systems and strategies to improve performance and relationships to avoid disputes between employees, clients, suppliers, subcontractors and other stakeholders, and where conflict and disputes cannot be avoided, to manage disputes effectively.

Related conflict management resources

Other resources you might like

If you found this article helpful and are interested in learning more, there is a wealth of other resources available on our website. We have a wide array of articles and guides on a variety of topics, each designed to provide you with a deeper understanding of the subject matter. We encourage you to explore these resources and deepen your knowledge.

Sense and violence: English courts reject offshore construction contractor’s $25 million indemnity insurance claim because its interpretation of the policy made no commercial sense and did violence to the language

In Technip v MedGulf, the English High Court and Court of Appeal dismissed a construction contractor’s $25 million (USD) indemnity insurance claim for damage it caused when it crashed into the project developer’s property during construction works in an offshore oil field. Both courts preferred the insurer’s interpretation of the policy’s ambiguously worded exclusion clause, finding the policyholder’s interpretation made no commercial sense and did far more violence to the natural meaning of the words.
Three people in business attire gathered around a table. Two are shaking hands while standing, and the third person, holding a laptop, stands nearby. A smartphone, coffee cup, and a rectangular planter are visible on the white conference table.

Court orders parties back to arbitration

The recent case of Sesderma, S.L. v Seeky International Limited and Golong Co. Ltd [2023] HKCFI 1619, heard in the Hong Kong Court of First Instance, examined the law of issue estoppel and the governing law of arbitration agreements.

An issue estoppel arose as a prior Hong Kong Court ruling held that the contract between the disputing parties which contained an exclusive jurisdiction clause had been superseded by the contract containing a China International Economic and Trade Arbitration Commission (CIETAC) arbitration clause.

The Court found that regardless of the issue estoppel the parties were bound by the arbitration clause and the proceedings were stayed.
A close-up view of a laptop displaying stock market charts and data. Hands are visible typing on the keyboard. In the background, people in business attire appear to be engaged in a discussion, one holding documents while another operates a tablet.

Arbitrator’s exercise of phantom jurisdiction

In CMB v Fund, Cattle and Management [2023] HKCFI 760, the Hong Kong Court of First Instance ruled that a pre-emptive arbitration should be set aside as there was no dispute between the immediate parties to the arbitration and the award was beyond the arbitrator’s jurisdiction.

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