Meaning
International treaties establish a framework for the direct enforcement of settlement agreements resulting from mediation across different jurisdictions without the need for a separate lawsuit. The singapore convention on mediation allows businesses to apply directly to the courts of a member state to enforce a settlement reached in another state. This treaty aims to make mediation a more attractive option for international commercial disputes.
Treaty Scope
The agreement applies only to international settlement agreements resulting from mediation for commercial disputes. The singapore convention on mediation does not cover settlements related to personal, family or labor law matters. This focus ensures that the treaty serves the needs of the global business community in cross border transactions.
Enforcement Method
A party seeking enforcement must provide the signed settlement agreement and evidence that it resulted from mediation. Under the singapore convention on mediation, the court of the member state is required to act expeditiously to enforce the terms. This bypasses the long process of suing for breach of contract, which was the only option before the treaty existed.
Refusal Ground
Courts can only refuse enforcement on limited grounds, such as a serious breach by the mediator or the settlement being contrary to public policy. These grounds are similar to those found in the new york convention for arbitration. This consistency provides a familiar and reliable legal environment for investors and industrial partners who operate in multiple countries.