Federal Decree-Law on Mediation and Conciliation in Civil and Commercial Disputes
Formal Name: Formal Name Federal Decree-Law No. (40) of 2023 on Mediation and Conciliation in Civil and Commercial Disputes
Article (1) Definitions
For the purpose of applying the provisions of this Decree-Law, the following words and expressions shall bear the meanings assigned thereto respectively, unless the context requires otherwise:
State: The United Arab Emirates.
Council: The Federal Judicial Council.
Department: The Federal Judicial Inspection Department.
Center: A Mediation and Conciliation Center.
Parties: Parties to disputes referred to Mediation or Conciliation.
Mediation: An optional and alternative method for amicable settlement of civil and commercial disputes that have arisen or might arise between Parties to a legal contractual or non-contractual relationship, by engaging a neutral third party (Mediator), whether such Mediation is based on the mutual consent of the parties involved or a court order.
Court-Ordered Mediation: Mediation intended to resolve a dispute after having first resorted to litigation under a referral decision by the Competent Court and at any stage of the case, whether at such court's proposal accompanied by the Parties' approval, or at the Parties' request.
Consensual Mediation: Mediation that is directly sought by the Parties involved to have a dispute resolved before resorting to litigation, in pursuance of the Mediation Agreement.
Mediation Agreement: A written agreement between the Parties to resort to Mediation to have their dispute resolved, whether such agreement takes place before or after the dispute.
Mediator: A natural or legal person engaged by the Parties or the Center to perform a mediation mission for amicable resolution of their dispute; provided that such Mediator is listed in the Center's Mediator List.
Mediator List: Lists created by the Department or a local judicial authority, as the case may be, and in which names of registered Mediators are listed.
Private Mediator: A natural or legal person engaged by the Parties to perform a mediation mission for amicable resolution of their dispute, without being listed in the Mediator Lists.
Mediation Costs: Administrative expenses for the Mediation and fees payable to the Mediator for the Mediation.
Mediator's Fees: The remuneration payable to the Mediator to perform their mission.
Competent Court: The trial court having the jurisdiction to hear the case.
Supervising Judge: The judge supervising the Center.
Conciliation: An alternative method for amicable resolution of disputes that must be sought before a case is registered in the instances defined under Article (27) hereunder, or while the case is being heard before the court at the request of the Parties in the instances other than the above ones; where a neutral third party (Conciliator) is engaged in an attempt to reach a settlement agreement signed by, and binding on, the Parties.
Conciliator: A person appointed to, or assigned at the Center to settle a dispute by way of Conciliation.
Settlement: Reconciliation reached by the Parties through Mediation or Conciliation, and the minutes thereof shall be approved by the Supervising Judge.
Settlement Agreement: A document executed by the Mediator or Conciliator and signed by the Parties, and sets out the settlement reached by the Parties for amicable resolution of their dispute, in whole or in part.
Mediation and Conciliation E-Platform: An electronic system through which all Mediation and Conciliation procedures are made.
Article (2) Establishment of the Centers
1. The Council or the president of the local judicial authority, as the case may be, may establish one or more Centers for Mediation and Conciliation within the jurisdiction of the courts of first instance. The establishment resolution shall determine the administrative subordination of the Center and the entity in charge of supervising and controlling the same.
2. The chairman of the Council or the president of the local judicial authority, as the case may be, shall issue the regulations governing the operation of the Centers, including the territorial jurisdiction of each Center, in case of multiple Centers established within the jurisdiction of the court of first instance, or may entrust one Center with multiple jurisdictions, as the case may be.
3. The Council or local judicial authority may create one or more Mediation and Conciliation E-Platforms, whose procedures and work system shall be determined by virtue of a resolution of the chairman of the Council or the president of the local judicial authority, as the case may be.
4. Private Mediation Centers may be established or Foreign Mediation Centers' branches may be licensed. The Cabinet shall issue a resolution, at the proposal of the Minister of Justice after coordinating with the local judicial authorities, determining their rules of procedure, license conditions, licensing authority and registration of Mediators in the same, as the case may be.
5. The Department or local judicial authority, as the case may be, shall develop the general policies of the Mediation and Conciliation Centers, and may monitor their work.
Article (3) Service of Process
The service of process methods set forth in the Federal Code of Civil Procedure shall apply to the Mediation procedures, unless otherwise agreed by the Parties.
Article (4) Remote Mediation and Conciliation
The Mediator and the Conciliator may each convene Mediation and Conciliation meetings remotely using electronic and remote communication means, in accordance with the controls and procedures issued under a resolution of the Minister, upon the approval of the Council or the president of the local judicial authority, as the case may be.
Article (5) Confidentiality of Information
1. The procedures of both the Mediation and the Conciliation shall be confidential. The Mediation and the Conciliation or the documents and information presented therein or the agreements or compromise made by the Parties involved may not be invoked before any court or any entity whatsoever. The Center, the Mediator, the Conciliator, the Parties and any person involved in the Mediation and Conciliation may not disclose any information received during the Mediation and Conciliation procedures without the consent of all Parties involved or where the law requires reporting any crime within the scope of the Mediation or Conciliation mission undertaken by the same, as the case may be.
2. The rules of confidentiality and invocation set forth in Clause (1) above shall not apply to the provisions of the Settlement Agreement and the documents necessary to enforce it.
3. In the event that the Mediator or Conciliator violates the confidentiality rules, as set forth in this Article, the aggrieved party may resort to the Center to have the disciplinary penalties set forth in Article (40) hereunder imposed, without prejudice to the provisions of civil and criminal liability.
Article (6) Prohibitions for the Mediator and Conciliator
It shall be prohibited for both the Mediator and the Conciliator to:
1. Serve as an arbitrator or expert in the dispute, or to accept to be an attorney in litigation against any of the Parties regarding the dispute under consideration in the Mediation or Conciliation or matters emanating from, even after the conclusion of the Mediation or Conciliation procedures, unless otherwise agreed by the Parties in relation to the Mediation;
2. Give testimony against a Party to the dispute on the same subject of the dispute under consideration in the Mediation or Conciliation and matters emanating from, even after the conclusion of the Mediation or Conciliation procedures, unless the same is authorized by the stakeholder or otherwise agreed by the Parties, unless the testimony is related to a crime; and
3. Perform the role of Mediation or Conciliation in a dispute to which one of the Parties is a spouse or a relative by blood or marriage up to the fourth degree.
Article (7) Res Judicata
1. Subject to the provisions of Article (14) hereunder, no person may resort to Mediation in case of prior recourse to Conciliation, pursuant to the provisions of this Decree-Law.
2. Notwithstanding the provisions of Article (30) hereunder, a dispute may not be referred to Conciliation as long as the Mediation has been sought settle the subject thereof, pursuant to the provisions of this Decree-Law.