Dispute resolution options including negotiation, mediation, arbitration, and litigation.
Litigation means referring a dispute to court, where a judge decides the outcome through a court judgment. Arbitration means referring it to one or more independent arbitrators (referred to as a "Tribunal") who determine the dispute through a binding decision called an "award". Arbitration may suit cross-border contracts involving sensitive information or specialised issues, while court proceedings may be more proportionate for straightforward claims involving assets in Singapore.
Why1. Generally, the main differences between litigation and arbitration are: Privacy: Court proceedings and judgments are generally public while arbitration proceedings are generally private. Exceptions do apply in certain cases. Procedure and Language: For litigation, the civil procedure rules of Singapore apply and there is limited flexibility. In arbitration, the parties have greater flexibility to agree on the procedure. Also, litigation proceedings are conducted in English, while the parties are free to agree on the language applicable to an arbitration. Right of Appeal: There is typically a right of appeal against a decision at first instance, though permission might be needed from the court in certain scenarios. There is generally no right of appeal on the merits of an award. A party may seek to set aside an award on limited or narrow grounds such as procedural unfairness. Enforcement overseas: Singapore court judgments are not necessarily enforceable as of right in foreign jurisdictions. This depends on the laws and arrangements of the foreign jurisdiction in question. On the other hand, arbitral awards benefit from a widely adopted international enforcement treaty - the Convention on the Recognition and Enforcement of Foreign Arbitral Awards (also known as the "New York Convention").
What To Do1. You can propose arbitration to your Singaporean partner, but both parties must agree in order for any dispute to be referred to arbitration. Such an agreement is typically recorded in your contract as an arbitration clause or arbitration agreement. 2. In comparing both litigation and arbitration, it may be helpful to consider the likely size of any dispute between you and your Singaporean partner as well as the location of where your partner's assets are located. 3. You may also wish to consider your budget, confidentiality needs, preferred language and whether you value an opportunity to appeal.
Yes, going to court is only one option. A settlement reached through mediation is generally binding if the terms of the settlement are recorded in a valid settlement agreement.
Why1. Depending on what your contract provides or what you and your Singaporean partner are willing to agree on after the dispute arises, you could consider: Negotiation: Discuss the dispute directly, whether through each party's respective representatives or lawyers, to find an acceptable solution. Mediation: Appoint an independent mediator to facilitate negotiations between both parties towards an amicable resolution. The mediator does not decide the merits of the dispute or impose an outcome on the parties. This can help preserve business relationships and produce practical solutions, such as a revised payment schedule or changes to supply arrangements. Arbitration: An independent tribunal hears the dispute and makes a binding decision. This requires an agreement to arbitrate, either in your contract or agreed after the dispute arises. 2. Trying mediation before starting court proceedings can save time and legal costs if a settlement is reached early. It also gives both parties greater control over the outcome and allows practical solutions that a court would not usually order. Discussions are generally confidential, and the less confrontational approach can help preserve a valuable business relationship. If mediation does not produce a settlement, then the parties may generally continue with litigation or arbitration.
What To Do1. Do check your contract first: the parties may be required to negotiate or mediate before any formal proceedings can be commenced. 2. A settlement agreement should clearly state each party's obligations, the applicable deadlines and which claims are settled. 3. In Singapore, certain mediated settlement agreements can be recorded as court orders under the Mediation Act 2017, provided the parties consent and the relevant statutory requirements are fulfilled. This allows your settlement agreement to be enforced like a Singapore court judgment. Otherwise, if your Singaporean partner breaches its obligations under the settlement agreement, you may need to commence legal proceedings to enforce the agreement. 4. Under section 12 of the Mediation Act 2017, a mediated settlement agreement can be recorded as a court order only if these five conditions are met: (1) No court proceedings have been commenced for the dispute (section 12(1)). (2) Any party to the agreement may apply, with the consent of all the other parties (section 12(1)). (3) The application is made within 8 weeks after the agreement is made, or within such longer period as the court may allow (section 12(2)). (4) The mediation was administered by a designated mediation service provider or conducted by a certified mediator (section 12(3)(a)). (5) The agreement is in writing, signed by or on behalf of all the parties, and contains the prescribed information (section 12(3)(b) and (c)). Section 12(4) also lists grounds on which the court may refuse to record the agreement, for example where the agreement is void or voidable on grounds such as fraud, duress or mistake, or where recording it as a court order would be contrary to the public policy of Singapore.
It may be, but choosing your home courts does not necessarily make it easier to recover your money. A clause giving the Taiwanese courts jurisdiction identifies where disputes can be heard, but it does not guarantee that a Taiwanese judgment will be enforceable wherever your partner has assets.
Why1. Generally speaking, a Taiwanese judgment for the payment of money can be enforced in Singapore, but this requires you to commence fresh Singapore court proceedings based on the Taiwanese judgment. Although the Singapore court does not ordinarily rehear the underlying dispute, this nonetheless adds time and cost. 2. For the Taiwanese judgment to be enforceable, it must be final and conclusive, require payment of a definite sum, and come from a court whose authority over your Singapore partner will be recognised by Singapore law. 3. Enforcement may be refused for reasons such as fraud, serious procedural unfairness or conflict with Singapore public policy.
What To DoBefore accepting the clause, consider: 1. Where are your partner’s assets? If the main assets are in Singapore, choosing Singapore courts may avoid the additional step of enforcing a Taiwanese judgment in Singapore. 2. What would proceedings cost overall? The convenience of suing in Taiwan should be weighed against the cost of enforcement overseas. 3. Does the clause require disputes to be heard only in Taiwan? An exclusive clause can restrict your ability to sue elsewhere. 4. Would arbitration suit the transaction better? It may offer advantages where assets are spread across different jurisdictions, but the enforcement position must still be checked.