Mediation vs. Arbitration in Hong Kong: Understanding the Differences and Available Centers

Mediation and arbitration are both forms of alternative dispute resolution (ADR) that aim to resolve disputes outside of court. However, there are some key differences between the two:

'Mediation':

• Mediation is a voluntary process in which a neutral third party, called a mediator, facilitates communication and negotiation between the parties to help them reach a mutually acceptable agreement.
• The mediator does not make a decision or impose a solution; instead, the parties themselves are responsible for reaching a settlement.
• Mediation is often used for disputes that involve ongoing relationships, such as family or business disputes, as it allows the parties to preserve their relationship and find a solution that meets their specific needs.
• Mediation is available at the 'Mediation Centre' of the 'Department of Justice' in Hong Kong.

'Arbitration':

• Arbitration is a more formal process in which a neutral third party, called an arbitrator, makes a binding decision on the dispute after hearing evidence from both sides.
• The decision of the arbitrator is final and enforceable, and can only be challenged on limited grounds.
• Arbitration is often used for disputes that involve a specific legal issue or complex technical matters, as the arbitrator is typically an expert in that field.
• Arbitration is available at the 'Hong Kong International Arbitration Centre (HKIAC)' and the 'International Court of Arbitration (ICA)' of the 'International Chamber of Commerce (ICC)'.

In summary, mediation is a voluntary process that aims to help parties reach a mutually acceptable agreement, while arbitration is a more formal process that involves a binding decision made by a neutral third party. The respective courts or centers for each of these ADR in Hong Kong are the 'Mediation Centre' of the 'Department of Justice' for mediation and the 'HKIAC' and 'ICA' for arbitration.