Box 7-10: UNCITRAL Model Law on International Commercial Conciliation [7.4.1]

UNCITRAL Model Law on International Commercial Conciliation applies to international commercial conciliation1, but it does not apply to cases where a judge or arbitrator attempts to facilitate a settlement. Articles 1 and 2 of the Model Law establish definitions and rules of interpretation, while Article 3 allows parties to agree to exclude or vary part of the law. The substantive articles are as follows:

Article 4: Commencement is on the day on which the parties agree to engage in conciliation proceedings, and if the party that issued an invitation to conciliate does not receive a reply within a specified time (usually 30 days), it can consider the invitation rejected.

Article 5: Unless the parties agree that there shall be two or more, there shall be one conciliator. The parties should agree on the conciliator, who should be independent and impartial and of a nationality other than the parties.

Article 6: The parties can agree on the conduct of the conciliation, and if they cannot, the conciliator can conduct the proceedings in such a manner as he or she considers appropriate. The conciliator may propose settlement terms at any stage of the proceedings.

Article 7: The conciliator may meet or communicate with the parties together or separately.

Article 8: Unless information is given to the conciliator subject to a condition of confidentiality, all information concerning the dispute shall be disclosed to both parties.

Article 9: Unless required by law or consented to by the parties, all information relating to the proceedings shall be kept confidential.

Article 10: Generally, no information from the conciliation process is admissible in any other proceeding.

Article 11: The conciliation proceedings are terminated by a settlement agreement, a declaration by the conciliator that further efforts are no longer justified, or a declaration of termination by a party.

Article 12: Unless agreed to by the parties, the conciliator shall not act as arbitrator in any related disputes between the parties.

Article 13: Generally, the parties shall not resort to arbitral or judicial proceedings during conciliation.

Article 14: If a settlement agreement is reached, it is binding and enforceable.2

ENDNOTES

1 WB/ITU, Dispute Resolution in the Telecommunications Sector, at 14.

2 General Assembly Resolution 57/18, Model Law on International Commercial Conciliation of the United Nations Commission on International Trade Law, available at http://daccessdds.un.org/doc/UNDOC/GEN/N02/538/98/PDF/N0253898.pdf?OpenElement.

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