How does an 'ongoing' mediation relate to legal proceedings?

We have noted a ruling in summary proceedings by the Arbitration Board for Construction Disputes: the claimant was declared inadmissible in its claim in connection with a mediation clause and the mediation/mediation still in progress.

From the ruling:
"It is established between the parties that the mediation/mediation process has not ended. The claimant indicated at the hearing that she also wants to continue the process. Article 32 (general terms and conditions) therefore in principle precludes the commencement of these arbitral proceedings and in principle results in the inadmissibility of the claimant."

Article 32 clause 1 of the Combination Agreement stipulates, as far as relevant here, that all disputes arising from the Combination Agreement shall be subject to mediation for resolution. Subsequently, article 32 sub 2 stipulates: "If the mediation has ended without a settlement agreement being reached, the dispute shall be settled by arbitration in accordance with the Statutes of the Arbitration Council for Construction Companies in the Netherlands ...[...]".

Read the ruling here.

Do you have any questions about this article or about mediation? Please contact our MfN registered mediator Monique Spee.

SPEE advocaten & mediation Maastricht