MEDIATION

MEDIATION

SCIAHK provides mediation service for parties. Parties may resolve disputes through mediation at all stages of a dispute upon their agreement. Parties can also opt for “mediation + arbitration” to solve disputes. 

 

SCIAHK provides its facilities and administrative services, by a dedicated staff team which assists the parties and the mediator(s) throughout the process.

Mediation Rules

Article 1 Purposes and Principles

These Mediation Rules of South China International Arbitration Center (HK) hereunder (the “Rules”) are enacted to facilitate the parties to settle their disputes in a harmonious, efficient, and low-cost manner.

Mediation shall be conducted on a voluntary basis, according to relevant laws and regulations, referring to international practices, and encouraging parties to negotiate to reach reconciliation.

 

Article 2 Scope of Mediation and Application of the Rules

Commercial disputes, disputes between investors and host States, and other disputes arising between natural persons, legal persons, and other organizations, can be submitted to South China International Arbitration Center (HK) (hereinafter “SCIAHK”) for mediation.

The aforesaid disputes, whether or not arbitration, litigation or other dispute resolution procedures have been initiated, can be submitted to the SCIAHK for mediation. Where the parties agree to submit disputes to the SCIAHK for mediation, the parties shall be deemed to have agreed to mediate in accordance with the Rules. Where the parties have agreed on other arrangements and agreed upon by the SCIAHK, the parties’ agreement shall prevail.

 

Article 3 Request for Mediation and Acceptance of a Case

Any party is entitled to apply to the SCIAHK for mediation, regardless of whether there is an agreement to mediation among the parties.

A party applying for mediation shall submit a Request for Mediation. The Request for Mediation shall include a brief introduction of the facts of the dispute, effective contact information of the disputing parties or their representatives. The parties shall submit a Power of Attorney if they authorize representative(s) to participate in the mediation.

Upon receiving the Request for Mediation, the SCIAHK shall promptly notify the other parties; the other parties shall confirm in writing whether they agree to mediation within fourteen (14) days from the date of receipt of the notice; a Party’s failure to confirm within this period shall be deemed a refusal to mediate for that Party.

Once, in addition to the party applying for mediation, at least one other party confirm their agreement to mediate and the mediation fees being paid in advance as stipulated in Article 16 of the Rules, the mediation process begins. If other parties wish to join the mediation afterwards, they may apply to the SCIAHK. The SCIAHK shall promptly send Notice of Mediation, the Rules, and the Panel of Mediators (hereinafter referred to as the “Panel of Mediators”) to the parties.

 

Article 4 Appointment of Mediator

Mediation cases shall be mediated by one (1) mediator, unless otherwise agreed by the parties.

Parties shall jointly appoint a mediator within five (5) days from the date of receipt of the Notice of Mediation, failing which, the mediator shall be appointed by the SCIAHK.

Mediator can be appointed from or outside the Panel of Mediators provided by the SCIAHK. For appointments outside the Panel of Mediators, approval from the SCIAHK is required.

 

Article 5 Disclosure by Mediator

The appointed mediator shall promptly disclose to the SCIAHK and the parties any circumstances that may affect his or her independence and impartiality in mediation.

Where a mediator has disclosed any circumstances that may affect the mediator’s independence or impartiality, and a party, after becoming aware of such circumstances, fails to raise an challenge within five working days, that party shall be deemed to have consented to the mediator acting as mediator.

Where a party raises an challenge to a mediator, the SCIAHK shall decide whether the mediator should be replaced.

 

Article 6 Replacement of Mediator

A mediator shall be replaced if he/she becomes unable or inappropriate to fulfil his/her functions. A new mediator shall be appointed in accordance with Article 4 of the Rules, unless otherwise agreed by the parties.

 

Article 7 Conduct of Mediation Proceedings

The mediator may conduct the mediation in a manner as he/she considers helpful for the parties to reach a settlement. These methods include but are not limited to:

  • After the commencement of the mediation proceedings, the mediator may communicate with the parties and their representatives together or with any party separately;
  • In the mediation proceedings, the mediator may request the parties to submit written or oral suggestions or proposals;
  • In the mediation proceedings, the mediator may, based on the information acquired and the principles of fairness and reasonableness, make suggestions or proposals for dispute resolution to the parties.

 

Article 8 Confidentiality

Unless otherwise agreed by all parties, mediation procedures shall not be open to the public.

The mediator, parties and their representatives, staff of the SCIAHK, and other persons involved in the mediation procedures shall be obligated to keep the mediation confidential, unless otherwise agreed by the parties or otherwise provided by laws and regulations.

 

Article 9 Time-limit for the Mediation

Parties may agree on the time-limit for the mediation.

With the consent of the parties, the mediator may also determine the time-limit for the mediation.

If the time-limit for the mediation is not determined, the mediation shall be completed within thirty (30) days from the date of the appointment of the mediator, unless the parties request or agree to an extension and it is approved by the SCIAHK.

 

Article 10 Place of the Hearing of Mediation

The hearing of mediation shall be conducted at the SCIAHK or at a place agreed upon by all parties.

 

Article 11 Use of Information Technology

Unless otherwise agreed by the parties, the SCIAHK or the mediator may decide to conduct all or part of the mediation procedures by virtue of information technology, including but not limited to the followings:

Any communication, including any document transmitted, among the parties, the SCIAHK and the mediator may be made by electronic means;

Any mediation conference may take place virtually by conference call, video conference or using other communications technology.

 

Article 12 Withdrawal from and Termination of the Mediation

Where any party notifies the SCIAHK of its withdrawal from the mediation procedures, only that party shall withdraw from the mediation procedures, without affecting the continuation of the mediation procedures by the other parties.

The mediation procedures shall be terminated if any of the following circumstances occur:

  • The parties have agreed on a settlement agreement;
  • The mediator considers mediation to be unobtainable and has decided to terminate the mediation;
  • The time-limit for mediation has expired;
  • Other circumstances that the SCIAHK considers termination imperative.

 

Article 13 Settlement Agreement

A settlement agreement reached through mediation shall be signed or sealed by the parties.

 

Article 14 Combination of Mediation and Arbitration

If a settlement agreement is reached, to make the content of the settlement agreement legally enforceable, if the laws of the seat of arbitration do not disallow such practice, any party may, based on the arbitration clause in the settlement agreement, apply to the SCIAHK in accordance with the SCIAHK Arbitration Rules implemented at the time of the request for arbitration, to issue a mediated settlement or an arbitral award based on the content of the settlement agreement.

If parties cannot reach a settlement agreement, any party has the right to submit the dispute to the SCIAHK for arbitration according to the arbitration agreement reached by the parties

 

Article 15 Independence of the Mediation

Any statement, view, opinion, suggestion, or material presented by either party or by the mediator in the mediation cannot be invoked by either party as grounds for supporting any claims, defenses, or counterclaims in the subsequent arbitration proceedings, judicial proceedings, or any other proceedings.

The mediator shall not be an arbitrator, representative of a party, or witness in any other arbitration or litigation proceedings concerning the same or related dispute, except with the written consent of all parties or as otherwise provided by the law of the seat of arbitration.

 

Article 16 Fees and Costs

The parties shall pay the mediation fees and costs in advance within five (5) days from the date of receipt of the notice of payment issued by the SCIAHK, according to the Schedule of Fees and Costs of Mediation. In principle, the claimant shall pay the mediation fees and costs in advance. Where the parties have agreed on the proportion of the payment, the agreement shall prevail.

If the mediation is unsuccessful, the balance of the advanced mediation fees shall be refunded to the parties after deducting the actual expenses incurred during the mediation process, including the SCIAHK's case administration fees, the mediator's remuneration, travel expenses, and other related costs.

 

Article 17 Disclosure of Third Party Funding or Insurance

The SCIAHK may accept an application for mediation funded by a third party or covered by insurance. If an agreement or arrangement is made among the parties participating in the mediation for third party funding or insurance, the funded or insured party shall notify in writing all other parties, the mediator and the SCIAHK of this fact as soon as possible and provide the name of the third party funder or insurer. Any changes to this information shall also be disclosed as soon as possible.

In the course of third party funded mediation, the third party shall not be any party in the mediation procedures, unless otherwise agreed in writing by all parties of the mediation procedures.

 

Article 18 Exclusion of Liability

Save for intentional wrongdoing, the parties waive, to the fullest extent permitted under the applicable law, any claim against the SCIAHK, its staff, the mediator, and any person appointed or engaged by the SCIAHK or the mediator, based on any act or omission in connection with the mediation.

 

Article 19 Miscellaneous

The Rules shall be interpreted by the SCIAHK.

The Rules shall be effective as from 31 August 2026.

 

Schedule of Fees and Costs of Mediation
Amount in Dispute (HKD) Institutional Fees (HKD) Remuneration for Mediators (HKD)
≦500,000 1,000 6,000
500,001 - 1,000,000 1,000 + 0.2% of those exceeding 500,000 6,000 + 0.2% of those exceeding 500,000
1,000,001 - 5,000,000 2,000 + 0.12% of those exceeding 1,000,000 7,000 + 0.13% of those exceeding 1,000,000
5,000,001 - 10,000,000 6,800 + 0.04% of those exceeding 5,000,000 12,200 + 0.07% of those exceeding 5,000,000
10,000,001 - 50,000,000 8,800 + 0.03% of those exceeding 10,000,000 15,700 + 0.06% of those exceeding 10,000,000
50,000,001 - 100,000,000 20,800 + 0.02% of those exceeding 50,000,000 39,700 + 0.05% of those exceeding 50,000,000
100,000,001 - 500,000,000 30,800 + 0.015% of those exceeding 100,000,000 64,700 + 0.02% of those exceeding 100,000,000
500,000,001 - 1,000,000,000 90,800 + 0.014% of those exceeding 500,000,000 144,700 + 0.015% of those exceeding 500,000,000
1,000,000,001 - 3,000,000,000 160,800 + 0.001% of those exceeding 1,000,000,000 219,700 + 0.01% of those exceeding 1,000,000,000
≧3,000,000,001 180,800 419,700

 

Notes:
  1. While applying for mediation, the parties shall pay a registration fee of HKD 1,000 to the SCIAHK. This fee is non-refundable and may be offset against the corresponding amount of arbitration fees under specific circumstances stipulated by the rules.
  2. Where no monetary claim is specified or the amount in dispute is not clear at the time of application for mediation, the SCIAHK shall determine the amount of mediation fee to be collected in advance based on factors such as the specific rights and interests involved in the dispute, the complexity of the dispute, etc.
  3. If the mediation fee is charged in a foreign currency, an amount of the foreign currency equivalent to the corresponding HKD value specified in this schedule shall be paid.
  4. The SCIAHK may charge other necessary expenses such as travel expenses of mediators, rental of mediation venues, etc., as needed to mediation.
  5. If the parties and the mediator have agreed otherwise on the remuneration of the mediator, the agreement shall prevail, subject to the approval of the SCIAHK.
  6. If parties agree to invite two or more mediators, the remuneration of the mediators shall be multiplied according to the number of extra mediators invited.
  7. For series cases where one or both parties are the same, the subject matter of the dispute and the mediation plan are the same or similar, and the number of cases is more than 3, the administrative fees and the remuneration of the mediators shall be calculated at 70% of the standard rate; if the number of cases is more than 10, the administrative fees and the remuneration of the mediators shall be calculated at 50% of the standard rate.
  8. If the mediation fails, the SCIAHK may issue a refund of the relevant fees as appropriate by considering factors such as the workload of the mediation, the amount in dispute, the complexity of the dispute, etc., provided that the administrative fee collected is no less than HKD 1,000 and the remuneration of the mediator is no less than HKD 6,000.
  9. If the parties first apply to the SCIAHK for mediation and after that fail to reach a settlement, then the parties subsequently submit a request for arbitration to the SCIAHK, the mediation fees already paid shall be offset against the corresponding amount of arbitration fees.
  10. For cases that have applied for arbitration with the SCIAHK and have paid the arbitration fees and costs in advance, parties do not need to pay the mediation fees and costs separately. The remuneration of mediators shall be determined and paid by the SCIAHK, considering the mediation results, the workload of the mediation, the amount in dispute, the complexity of the dispute, etc.