Corporate Lawyers As Mediators: Resolving Shareholder Disputes In Dubai

By Author: Dr. Hassan Elhais
Total Articles: 64
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Mediation
Mediation is a form of dispute resolution mechanism that is less formal than a court procedure. It involves a neutral third-party mediator that helps guide the disputing parties to reach a solution. It is undertaken voluntarily by disputing parties when they seek to resolve the disputes amicably. Dubai is witnessing an increasing number of businesses resorting to mediation as a tool to resolve disputes, particularly when the disputes involve shareholders and other entities within the organization.
Mediation in corporate businesses
Although mediation is traditionally undertaken during family disputes or to settle personal or workplace issues, it is now increasingly being used in the corporate sector. Mediation in the corporate field has a wide set of benefits that are unavailable in the case of more mainstream dispute resolution processes such as litigation or arbitration.  

Confidentiality

Unlike litigation procedures, where details of the case can become a part of public records, the mediation process can be extremely confidential. ...
... This is particularly beneficial in cases involving trade secrets, intellectual property matters, or where disputes can impact the brand or image of the company.  

Preservation of business ties

The mediation process is a voluntary procedure that is undertaken by the parties involved in the dispute. Consequently, choosing this dispute resolution mechanism as opposed to litigation or arbitration shows a level of trust and respect between the disputing parties. Furthermore, in the mediation process, the mediator helps the parties work together and come to a mutual settlement. This is in contrast to arbitration or litigation, where an arbitrator and a judge issue a judgment after hearing the disputing parties. As a result, the parties are at odds, despite the fact that arbitration and litigation result in judgments. On the other hand, mediation fosters stronger relationships between the participants. This is particularly useful in a business setting, as the parties can continue to collaborate with each other.

Cost-effective

Mediation is among the most cost-effective forms of dispute resolution. As mediation is less adversarial than other forms of ADR, and without the procedures and formalities of arbitration and litigation, the cost of the process reduces to a fraction of other forms of resolution.

Flexibility

The mediation process does not have a set procedure. It is extremely straightforward and can be carried out in the manner required by the parties. Unlike litigation, where the process is bound by the procedural laws of the land, the mediation process can be designed to suit the schedule and the interest of the parties.
 
Similarly, with regard to the outcome of the process, in litigation, the outcome of the case is largely dependent on the applicable laws. Conversely, mediation allows the parties to design the outcome that is agreeable to both parties. Mediation also allows flexibility in the choice of mediator, the agenda of the proceedings, and the techniques involved.
 

Faster resolution

Mediation is also beneficial in terms of time management. The parties can come to resolutions faster than in a traditional form of dispute resolution. This is possible as parties have full control of the schedule and the agenda. Furthermore, parties communicate directly, and these communications are in the form of direct discussions and not as submissions and cross-examinations. 
Corporate lawyers as mediators
Corporate lawyers can be a great resource as mediators. Their training in the field, and their skillset as a corporate lawyer, can be extremely beneficial in the field of mediation. Let us look at the characteristics of Dubai corporate lawyers that make them good mediators.

Knowledge of business law

Corporate lawyers deal with contractual agreements and business disputes on a daily basis. Therefore, they acquire an expertise in this area of law. They are well aware of the laws governing the businesses and the nitty-gritty involved. Therefore, they will be adept as mediators in commercial disputes, guiding parties to reach workable solutions.
 

Expertise in locallaws

Corporate lawyers in Dubai have the added advantage of being experts in the federal laws of the country. Therefore, they are particularly useful at managing disputes that arise in the UAE jurisdiction.  Their strong understanding of the relevant laws and regulations enables them to serve as effective mediators.
 

Strategic thinking

One of the key responsibilities of a corporate lawyer is helping clients understand potential risks and benefits of different actions at different stages of business, ensuring that the chosen solution aligns with the clients' objectives. Additionally, in case of disputes, corporate lawyers help with strategizing the direction of the case. These skills are essential in a mediator to ensure that the parties involved reach useful solutions.
 

Negotiation skills

Corporate lawyers acquire training in negotiation. These skills are further developed when they are involved in mergers and acquisitions and other forms of business deals. Negotiation skills are an important skill in a mediator due to which corporate lawyers make good mediators.
 

Experience with dispute resolution

Corporate lawyers come with extensive experience in handling commercial disputes for their clients including litigation, arbitration and mediation cases. These experiences make them familiar with the complexities of resolving conflicts.
 

Confidentiality

Confidentiality is the corner stone of the legal profession. All client-lawyer relationships are protected by client confidentiality. Moreover, corporate lawyers deal with confidential information of their various clients which may be in the form of trade secrets, personal information or any other information provided to the lawyer in confidence, by the client. Apart from the ethical and legal obligation to maintain confidentiality, it is also crucial for fostering trust and enabling clients to freely share sensitive information with their lawyers. Corporate lawyers as mediators are thus extremely effective in maintaining confidentiality of the mediation process and the information shared therein.
 
Conclusion
Corporate lawyers in Dubai are already being chosen as mediators to settle shareholder disputes as well as other forms of disagreements within organizations. Their expertise and skills in corporate law make them extremely effective mediators. In addition, their skill set involving strategic thinking, negotiation, and corporate litigation helps them guide disputing parties towards practical, workable solutions. Their unique skill set in the area helps parties preserve their working relationships, allowing businesses to carry on unscathed, despite any differences that may arise.  

After qualifying as a lawyer within the fields of Criminal and Public Law, Dr. Hassan Mohsen Elhais has been practicing as a Legal Consultant in Dubai since 2006. Working exclusively with Awatif Mohammad Shoqi Advocates & Legal Consultancy, Dr. Hassan has a strong ethical stance with regards to the place of the law firm, from clarity on the legal process through to the fee system.