The Hybrid ADR Process (Med-Arb): Settlement First, Certainty Always

Most disputes end in a settlement. The trouble is that parties often walk into a process that cannot produce one — or into a mediation that, if it fails, leaves them starting again in court. The hybrid model of dispute resolution solves both problems. It begins with mediation and, if settlement is not reached, converts into arbitration that ends in a binding award. Settlement is attempted first; a final outcome is assured either way.

How Med-Arb works at Adjudix

• Agreement — the parties opt into the hybrid procedure in their contract or after the dispute arises.
• Mediation phase — a mediator from the Adjudix panel works with the parties, jointly and in private sessions, to find terms both can accept.
• Settlement — if the parties settle, the terms are recorded as a consent award, with the same status and effect as an arbitral award.
• Conversion — if mediation does not succeed within the agreed period, the matter moves to the arbitration phase under the Adjudix Code of ADR Procedure.
• Award — the tribunal decides the outstanding issues and makes a final, enforceable award.

The confidentiality question

The hard part of any hybrid process is what happens to information shared in mediation. A party that speaks candidly to a mediator in private session should know in advance whether that same person may later decide the case. The Adjudix Code answers this by offering Med-Arb in two kinds, chosen in the clause or at the start of the case.

• Same-Neutral Med-Arb (Option A) — the mediator continues as arbitrator if mediation fails, already knowing the negotiations that took place. It is quicker and cheaper, because no one has to learn the case afresh, and the parties waive any objection based on what the neutral learnt in mediation.
• Separate-Neutral Med-Arb (Option B) — a different neutral conducts the arbitration, and nothing said in mediation goes to the arbitrator. It suits parties who want to speak with complete freedom in mediation.
• A silent clause — where the agreement does not say which kind applies, the Code deems it Same-Neutral Med-Arb. Parties who want separate neutrals should say so in their clause.

Why the law supports it

Section 30 of the Arbitration and Conciliation Act, 1996 expressly allows an arbitral tribunal to use mediation, conciliation, or other procedures to encourage settlement, and to record a settlement as an award on agreed terms. A hybrid procedure therefore sits squarely within the existing law; it does not depend on any novel interpretation.

When Med-Arb works best

• Long-term commercial relationships — supply, distribution, joint ventures — where preserving goodwill matters.
• Construction and infrastructure contracts with many small, technical disputes.
• Family-owned businesses and shareholder disagreements, where a settlement saves the business.
• Any dispute where one party fears that mediation is only a delaying tactic.

Choosing the neutrals

The success of a hybrid process depends heavily on who conducts each phase. A good mediator is patient, curious, and skilled at helping parties see their real interests; a good arbitrator is rigorous, decisive, and careful about procedure. Some professionals do both well, but the roles are different. At Adjudix, the parties may choose the mediator and the arbitrator separately from the Professional Panel, or ask the Secretariat to propose names suited to the subject matter — an engineer for a construction dispute, a chartered accountant for an accounts dispute.

The time allowed for the mediation phase is agreed at the outset, typically between two and six weeks. A fixed window keeps everyone focused: the parties know that if they do not settle, a binding decision will follow, which is often the strongest incentive to settle of all.

What it costs

Because many hybrid matters settle in the mediation phase, the overall cost is frequently lower than a full arbitration. Where the case does convert, the work done in mediation — narrowing the issues, agreeing facts, exchanging documents — usually shortens the arbitration that follows. Fees for each phase are set out in the Adjudix fee schedule, so parties can plan for both outcomes.

The result

Parties get the cost and relationship benefits of a negotiated outcome without the risk of an inconclusive process. That combination — resolution first, then assured implementation — is why the hybrid model is the lead service at Adjudix.