Where the dispute is between parties from different countries, by agreeing to arbitrate, they dispense with arguments over which court or which law shall apply. This would not be the case in the civil courts. Furthermore the arbitrator's judgment ("the award") is enforceable in most countries like any other judgment.

Arbitration follows a strict timetable either set by the parties or under its own rules.

Once the parties have agreed that CAREN shall arbitrate, then the CAREN rules apply and provide :

for the appointment of an arbitrator if the parties have not already chosen one,
for the approval of the arbitrator chosen by the parties,
for the management of the proceedings to ensure that all steps are correctly followed,
that the arbitration will be completed within a maximum of six months unless the parties agree otherwise.

II. Mediation

A. Its objectives

Mediation is an amicable method of setting conflicts. In practice it concerns traders or companies and their customers or suppliers.

It is intended in particular, but not exclusively, for Small and Medium sized Companies which are traders, craftsmen and service providers.

The disputes dealt whith may be national or international in character.

B. Its characteristics

a. An amicable procedure

The setting up and following through of a mediation procedure pre-supposes the agreement of the parties at all times. It would serve no useful purpose to delay the solution of the problem if it were clear , either from the beginning or in the course of the operations, that it is impossible to come to an agreement.

b. Designation of the mediator

The parties may select their mediator themselves from a list of people approved by the CAREN.

c. Confidentiality

The operations are and remain strictly confidential.

This confidentiality is specially ensured should the discussion break down, by means of the following measures :

if legal or arbitration proceedings take place later, none of the statements, opinions, suggestions, declarations or proposals of whatever nature expressed during or on the occasion of the mediation procedure may be taken into account at such proceedings
the mediator may not be an arbitrator in the same case.

d. Simplicity

The rules of mediation laid down by the CAREN are very simple, and they allow great freedom of action to the parties and the mediator.

e. Rapidity

The parties themselves set the time scale whithin which the mediator must fulfil his mission. In any case, this time period may not be longer than six weeks

f. Limited costs and fees

The mediator's fees and expenses are fixed by a schedule of rates, and they are therefore known in advance. The schedule of rates is established in such a way as to ensure that cost is not an obstacle to the solution of disputes.

See How much ?

g. A possible prelude to arbitration

If required, wheter the parties have planned for this possibility or not, mediation may constitute a prelude to arbitration.

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