Document background
The Binding Mediation Agreement is a crucial document used in Hong Kong's alternative dispute resolution landscape when parties wish to commit to a mediation process with binding outcomes. It is particularly relevant in commercial disputes where parties seek a more efficient and cost-effective resolution compared to litigation, while still maintaining enforceability of the outcome. The agreement typically comes into play either at the onset of a dispute or as part of a broader dispute resolution strategy, often recommended by Hong Kong courts under Practice Direction 31. The document comprehensively addresses all aspects of the mediation process, from mediator selection to confidentiality requirements, while ensuring compliance with Hong Kong's Mediation Ordinance and related legislation. This type of agreement is increasingly popular in Hong Kong's business environment, where there is a growing preference for alternative dispute resolution mechanisms that combine the flexibility of mediation with the security of binding outcomes.
