Combining Interactive Arbitration with Mediation: A Hybrid Solution under the Interactive Arbitration Rules

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The results of the latest 2021 international arbitration survey of Queen Mary University of London show a notable shift in favor of more hybrid solutions to commercial disputes. Out of
90% of those who preferred arbitration as a means of resolving cross-border disputes, 59% or almost two-thirds of the people surveyed preferred arbitration together with alternative dispute resolution (“ADR”), such as mediation.1) Parties are clearly now more open to hybrid solutions. The arb-med-(arb) process embedded in the Interactive Arbitration Rules (2021) (the “Interactive Arbitration Rules”) of the Japan Commercial Arbitration Association (“JCAA”) is one such solution.

The Interactive Arbitration Rules were boldly launched by the JCAA in 2019 and later revised in 2021 to expand the automatic application of expedited arbitration procedures.2) They offer a bespoke type of arbitration that can be combined with mediation. Users can choose these rules before or even after a dispute has arisen.3) Unfortunately, the said rules have not yet gained traction in Japan perhaps due to lack of awareness and familiarity. This article aims to explain how the interactive and pro-transparency features of interactive arbitration can pave the way for an arb-med-(arb) hybrid solution under the said rules, and how the hybrid proceedings could generally look like.

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