Abu Dhabi Global Market launches Mediation in the Metaverse
- The world’s first mediation service in the metaverse has been made available by the ADGM Arbitration Center, a cutting-edge arbitration and mediation hearing facility located in the capital of the United Arab Emirates’ international financial district. This service will immediately turn the court-annexed mediation scheme run by ADGM Courts into the next generation of mediation, revolutionizing the way mediation is delivered globally.
- The demand for innovative technology in this area for alternative conflict resolution has led to the establishment of this center.
What is Arbitration?
- Because the parties must consent to having their case arbitrated, the arbitration procedure is consensual. Usually included in the primary contract between the parties, the arbitration agreement—also known as a “arbitration clause”—is the subject of disputes. However, once a disagreement has emerged, parties may separately consent to arbitration.
- In arbitration procedures, a panel of arbitrators—typically consisting of three—or a single arbitrator decides the case. An arbitrator’s duties are comparable to those of a judge in that they oversee the procedures to guarantee that each party to the disagreement has a fair chance to state their case. The arbitrator will provide a final, legally binding ruling at the end of the arbitration that is binding on both parties.
Mediation in the Metaverse
- The world’s first “mediation in the metaverse” service was introduced by ADGM Arbitration Centre in November 2022.
- The metaverse service gives participants access to a 3D office environment, or “digital twin,” of the ADGM Arbitration Center, making virtual mediation more immersive. Participants’ video images are integrated into their virtual environment in this virtual area.
Draft Model Arbitration Clause
- Arbitration will be used to finally decide any dispute arising out of or related to this contract, including any inquiries regarding its existence, validity, or termination.
- English will be the language of the arbitral procedures, and there will be [one/three] arbitrators.
- The Abu Dhabi Global Market’s substantive law will apply to the deal.
- The Abu Dhabi Global Market will serve as the arbitration’s seat (legal location), and the Arbitration Regulations of the Abu Dhabi Global Market that were in effect on the date the arbitration was requested will be followed.
- [The rules of [insert name of arbitral institution], which are incorporated by reference into this arbitration clause, shall govern the arbitration.] [As needed, complete or delete]
Draft Model Jurisdiction Clause
Exclusive
The Abu Dhabi Global Market Courts shall have exclusive jurisdiction over any dispute arising out of or relating to this contract, including any inquiry into its existence, validity, or termination. The laws of Abu Dhabi Global Market shall apply to the interpretation and enforcement of this contract.Not exclusive
Abu Dhabi Global Market Courts will have non-exclusive jurisdiction over any dispute arising out of or related to this agreement, including any inquiry into its existence, validity, or termination. On the grounds that the Abu Dhabi Global Market Courts are an inconvenient forum, each party irrevocably submits to the jurisdiction of those courts and waives any objection it may have to disputes arising out of or in connection with this contract being heard in those courts.Current argument
After a disagreement arose between the parties over [DEFINE matter], the parties heretofore agree that the Abu Dhabi Global Market Courts will have exclusive jurisdiction over the matter.
Arbitrators Panel
- Because an arbitral award is final and binding, this is one of the most significant decisions that parties make throughout an arbitration. The conduct of arbitration procedures can be greatly influenced by the caliber and style of the arbitrator, especially when it comes to making sure the procedure is quick, equitable, and economical.
- The ADGM Arbitration Centre has released a list of arbitrators who are prepared to sit in ADGM to help parties with the arbitrator selection process. The panel is not exclusive, therefore in any arbitration held in ADGM, the parties are entitled to select an arbiter who is not on the panel. Parties and their advisors may use the panel as a tool to help with the arbitrator selection process.