Guidelinesfor

Commercial
Conciliation
Effective1May2015

GuidelinesforCommercialConciliation2015

GuidelinesforCommercialConciliation
Partiescanoftenbestresolvebusinessdisputeswiththeassistanceofaneutralthirdparty,
theconciliator.Theconciliatordoesnotimposeadecisionontheparties.Theconciliators
roleistofacilitatediscussionsbetweenthepartiesby,identifyingandclarifyingtheissuesin
dispute and assisting to resolve the dispute by exploring alternatives and searching for
solutions.Ifitisnotpossibletoresolveallissuesbetweenthepartiestheconciliatormaybe
abletoassistinnarrowingordefiningtheissuesindispute.Theaimoftheconciliationisto
reduceadversityandtoachieveatimelyandcosteffectivesolutionfortheparties.
Partiesmayagreetoconciliationatanystageofadispute,irrespectiveofwhetherlitigation
proceedings have commenced. These Guidelines may be invoked by the parties referring
thedisputetoADCeithervoluntarilybytheparties,byCourtorderorasaconsequenceof
anADC(orAustralianCommercialDisputesCentre(ACDC),apriorregisterednameofADC)
conciliationclauseinthecontractwhichgovernsthesubjectofthedispute.Ifthepartiesto
adisputeinvoketheseGuidelinesbyanyoftheabovemeanstheywillbedeemedtohave
agreedtobeboundbythetermsandconditionsoftheseGuidelinesandtheyshallfullyco
operateintheconciliationprocess.
IntheeventthatthereisanyconflictorinconsistencybetweentheConciliationAgreement
andtheseGuidelines;
(a)

theGuidelinesshallprevailiftheconflictorinconsistencyrelatestoanymatterset
outinclauses4(6),9,12or13oftheGuidelines;

(b)

otherwisetheConciliationAgreementshallprevail.

Conciliationcanbeusedpriorto,orinconjunctionwith,otherformsofdisputeresolution
suchasexpertappraisal,expertdetermination,arbitrationandlitigation.Conciliationcanbe
a stronger form of intervention than mediation as the conciliator is able to conduct his or
herowninvestigationsandstatehisorherviewsontheissuesindisputetotheparties.

For more information about Commercial Conciliation or other ADC dispute resolution
methods,pleaseringADC(AustralianDisputesCentre)on(02)92390700.

Address:
AustralianDisputesCentre
Level16,1CastlereaghStreet
SydneyNSW2000

Email:info@disputescentre.com.au

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GuidelinesforCommercialConciliation2015

PROCEDURES
1.

NotificationofPartiestotheDispute

(a)

IftheseGuidelineshavebeeninvokedbyreferringthedisputetoADC,theparty
(or parties) who alleges it has suffered some loss or damage, or is otherwise
aggrieved,shallgivewrittennoticetotheotherparty(orparties)settingoutthe
nature of the dispute, how the dispute arose and the solution it seeks to the
dispute (the "Notice of Dispute"). There is no specific form for the Notice of
Dispute, although it must be apparent on the face of the document that it is a
notificationofadispute.

(b)

Withinseven(7)daysofreceiptoftheNoticeofDispute,thepartiestothedispute
musttakereasonablestepstoconferandtrytoresolvethedispute.

(c)

If the dispute is not resolved within seven (7) days of receipt of the Notice of
Dispute,orwithinsuchfurtherperiodasthepartiesagree,thentheparties,orany
one of the parties, shall notify ADC that the dispute has not been resolved and
that the dispute is to be referred to conciliation. At the same time each party
shall:

(i)

pay half (or such other proportion as may be agreed by the parties and ADC) of
theADCregistrationfeesetoutinclause13andSchedule1inforceonthedate
the dispute is referred to conciliation (or such other time as ADC in its absolute
discretionconsidersappropriate);and

(ii)

provideADCwithabriefstatementofthekeyfactsandissuesthateachconsiders
willariseintheconciliation.

2.

SelectingaConciliator

(a)

Uponreceivingtheregistrationfeeandthestatement(s)referredtoinclause1(c),
fromtheparties,ADCwillselecttwoormoreappropriatelyqualifiedconciliators
andprovidethepartieswithdetailsofeachperson'squalificationsandexperience
togetherwithinformationconcerningthefeeschargedbytheperson.

(b)

Withinseven(7)daysofreceivingthedetailsandinformationconcerningthefees,
each party shall provide ADC with a list setting out its order of preference in
relation to the proposed conciliator. If any party believes that a person whose
detailshavebeenprovidedisunsuitabletoactastheconciliatorofthedisputefor
somereason(suchaswellknownbyaparty)theyshouldnotifyADCaccordingly.

(c)

Upon receipt of the lists of preferences ADC will determine whether the parties
have identified a preferred conciliator. If so, ADC will appoint the preferred
conciliator.

(d)

If the parties have failed to identify a preferred conciliator, and the agreement
made by the parties has provided for an alternative method of appointing the
conciliator, ADC will follow that method. If the parties have not specified any
alternativemethod,orthealternativemethoddoesnotresultintheappointment

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of conciliation within a reasonable time, ADC will, in its absolute discretion,

appointaconciliator.
(e)

UponappointmentofaconciliatorADCwillprovidetheconciliatorwiththedetails
ofthedisputeprovidedbythepartiesandrequesttheconciliatortoadviseADCif
theremaybeanyconflictofinterestoranyreasonforperceptionofbiasinthat
personactingasconciliatorofthedispute.Ifsoadvised, ADCwillinformallthe
parties.Ifthepartiesstillwishtocontinuewiththatconciliatortheymustprovide
ADCwithastatement,inwriting,thattheyareawareoftheconflictofinterestor
facts that may give rise to a perception of bias but wish to proceed with the
appointmentofthatconciliator(seealsoclause3).Ifthepartiesdonotwishto
continue with that conciliator ADC will, in its discretion, appoint another
conciliator.

3.

NeutralityofConciliator

(a)

The conciliator is independent and impartial and has no vested interest in the
outcomeofthesettlementofthedispute.

(b)

If the conciliator becomes aware at any stage of any circumstance that might
reasonably be considered to affect adversely his or her capacity to act
independentlyorimpartially,theconciliatormustinformthepartiesimmediately.
Theconciliatormustinsuchcircumstancesterminatetheproceedings,unlessthe
partiesagreeotherwise.

(c)

The conciliator will not later act for any party in, or relating to, any arbitral or
courtproceedingsorexpertdeterminationinrespectofthedispute.

4.

ConciliationAgreement/Fees/ConductofConciliation

(a)

Within fourteen (14) days of appointment of the conciliator, the parties and the
conciliatorshallsignaConciliationAgreement.TheConciliationAgreementshall
be generally in the form of the agreement which will be provided to the parties
after the matter is registered with ADC, or as amended in writing and signed by
thepartiesandtheconciliator.TheConciliationAgreementshallbeincorporated
into,andformpartoftheseGuidelines.

(b)

Following execution of the Conciliation Agreement by the parties and the

conciliator,ADCshallprovidethepartieswithanestimateofthefeesthatwillbe
incurredbytheconciliationandADCintheconciliation.Unlessotherwiseagreed
betweentheparties,theconciliatorandADC,thepartiesshallprovideADCwitha
security deposit in the amount of the estimate within fourteen (14) days of
receiving such estimate and in any case before the commencement of the
conciliation.Thesecuritydepositmaybeutilisedinaccordancewithclause13of
theseGuidelines.

(c)

Thepartiesshallconferwitheachotherandtheconciliator,ifnecessaryatapre
conciliation meeting, to determine what further steps (including production of
furtherdocumentationtotheconciliator)needtobetaken.

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5.

Date,TimeandPlaceofConciliation

(a)

The conciliation shall take place as soon as practicable after ADC receives the
securitydepositandanyfurtherdocumentationagreedtobeprovidedhasbeen
forwardedtotheconciliator.Theconciliationshallbefixedforadate,timeand
placeagreeabletothepartiesandtheconciliator.

(b)

Intheeventthatthepartiescannotagreeontheplaceforholdingtheconciliation,
the conciliator shall nominate the place. The parties agree to be bound by the
conciliator'sdecisionand willdoallthingsnecessarytoenter intoanynecessary
agreementtosecureuseofthatvenue.

6.

AuthorityofConciliator

(a)

Each party to the dispute shall cooperate with, and abide by any reasonable
directionsgivenbytheconciliatorandADCwiththeaimofefficientresolutionof
thedispute.

(b)

Theconciliatordoesnothavetheauthoritytoimposeasettlementontheparties,
but will attempt to help them to reach a satisfactory resolution of the dispute.
The conciliator is authorised to conduct joint and separate meetings with the
partiesasandwhentheconciliatorconsidersappropriate.

(c)

If necessary, the conciliator may seek the consent of the parties to enable the
conciliator to obtain expert advice concerning specialist technical aspects of the
dispute.Ifthepartiesagreetotheappointmentofsuchanexpertandagreetobe
responsible for the expenses of obtaining such advice ADC will, in consultation
with the parties and the conciliator, make the arrangements for appointing the
expert.

(d)

If thepartiesselecta dispute resolution process thatprovidesforthe disputeto

be referred to expert determination in the event that the conciliation is
unsuccessful,thepartiesandtheconciliatoragreethattheconciliatorcannotact
astheexpert.

(e)

Unless otherwise agreed by the parties, the conciliator may, at any stage of the
conciliationproceedings,makesuggestionsforsettlementofthedispute.

7.

RepresentationsandAttendance

(a)

Ifapartyisanindividual,thatindividualmustattendtheconciliation.Iftheparty
is a company, a representative authorised by the company must attend the
conciliation.Thatpersonmusthaveauthoritytosettlethematter.

(b)

Eachpartyisentitledto bringitslegalrepresentativeandanyotherperson with

information or knowledge relevant to the resolution of the dispute. Unless the
partiesandADCotherwiseagree,atleastseven(7)dayspriortotheconciliation,
each party shall inform ADC, the conciliator and the other parties who will be
attendingtheconciliationonitsbehalf.

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8.

SeparateSessions

(a)

Each party (with or without their advisers) may meet separately with the
conciliator.

(b)

Any information revealed in those separate sessions will not be revealed to the
other parties by the conciliator, unless otherwise agreed by the party in the
separatesession.

9.

Confidentiality

(a)

Thepartiesagreethatasfaraspossible,theconciliationisconfidentialandthatall
persons attending the conciliation will sign a confidentiality agreement. This
agreement extends to any settlement proposal, statement made in, or
information prepared for the conciliation. However, the requirement of
confidentiality will not prevent a party from making necessary disclosures of
information to its legal advisers, insurers or other necessary parties such as a
partys board of directors or its employers or, to other members of a group
makingupapartytotheconciliation.Intheeventthataconciliatoristoactasan
arbitratorinproceedingsinvolvingtheparties,therequirementofconfidentiality
in this clause 9 will also not prevent the conciliator from disclosing confidential
informationbeforeconductingsubsequentarbitrationproceedingsinaccordance
with the applicable legislative provisions allowing for a conciliator to act as an
arbitrator.
Allpartiesmustunderstandattheoutset,thatexceptionstoconfidentialityexist
andifnecessarythepartiesshouldseektheirownadviceontheseexceptions.

(b)

Subjecttoclause11,thefollowingwillbeprivilegedandthepartiesagreenotto
calluponorseektosubpoenatheconciliatororanyofficer,employee,oragentof
ADC to give evidence or to produce documents or to rely on or introduce as
evidenceinanyarbitralorjudicialproceedings:
(i)

viewsexpressedorsuggestionsmadebytheconciliatororeitherparty
withrespecttoapossiblesettlementofthedispute;

(ii)

admissionsmadebyeitherparty;

(iii)

proposals for settlement of the dispute made by the conciliator or

eitherparty;

(iv)

the fact that either party has indicated a willingness to accept a

proposalforsettlementmadebytheconciliator;

(v)

documentspresentedattheconciliation,suchaspositionpapers,unless
thosedocumentsareotherwisediscoverable,ornotesmadewithinthe
conciliationbytheconciliatororbyanyparty;

(vi)

anymatterarisinginconnectionwiththeconciliation.

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GuidelinesforCommercialConciliation2015

(c)

The parties agree not to seek to join the conciliator or any officer, employee or
agentofADCtoanylegalproceedingsbroughtbythirdparties,whetherornotthe
proceedingsrelatetothisdispute.

(d)

Every aspect of every communication within the conciliation shall be without

prejudice.However,ifthedisputeissettledthentheagreementwhichisreached
shallberecordedinwritinginaSettlementAgreement,signedbyallthepartiesto
thedispute.ThepartiesagreethatanysuchSettlementAgreementmayberelied
uponbythepartiesasevidenceofthesettlementofthedispute.

(e)

No statements or comments, whether written or oral, made or used by the

parties,theirrepresentatives,byanypersonattheconciliationorbyanyofficer,
employeeoragentofADCinpreparationfororinthe courseoftheconciliation
shallbereliedupontofoundormaintainanyactionfordefamation,libel,slander
or any related complaint against any one of those persons listed above, and the
partiesagreethatthisdocumentmaybeproducedandrelieduponasacomplete
defencetoanysuchaction.

(f)

Notranscriptofrecordsiskeptoftheconciliationorapreconciliationmeeting.

10.

TerminationoftheConciliation

Theconciliationmaybeterminated:
(a)

by a party giving written or oral notice to each party to the conciliation and the
conciliator;

(b)

uponexecutionofawrittenSettlementAgreementinrespectofthedispute;

(c)

by the conciliator giving written or oral notification to the parties if, after
consultationwiththeparties,theconciliatorformstheviewthatheorshewillbe
unable for whatever reason to assist the parties to achieve resolution of the
dispute. If the conciliation is terminated in accordance with this clause, and the
parties so request, ADC shall appoint a further conciliator to complete the
conciliation.

11.

EnforcementoftheSettlementAgreement

Intheeventthatoneormoreofthedisputedissuesisoraresettled,anypartytothe
conciliationmayenforcethetermsoftheSettlementAgreementreachedattheconciliation
byjudicialproceedings.
12.

Liability

Exceptinthecaseoffraud:
(a)

thepartiesreleaseADC,itsofficers,employeesandagentsandtheconciliator
fromanyliabilityofanykindwhatsoeverarisingoutoforinconnectionwiththe
conciliatorsappointmentandortheconciliation.

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(b)

thepartiesjointlyandseverallyindemnify,andwillkeepindemnified,ADC,its
officers,employees,servantsandagentsandtheconciliatorforandagainstany
claimfornegligenceorbreachofanytradepracticesorfairtradinglegislation
whichmayariseinconnectionwith,orresultingfrom,theconciliator's
appointmentoranyactoromissionarisingoutoforinconnectionwiththe
conciliation.Theindemnityisexpresslygivenforthebenefitoftheparties
indicatedandmaybeenforcedbythemindividuallyifnecessary.

Thisdocumentmaybeproducedandrelieduponasacompletedefencetoanysuchclaim.
13.

Fees

(a)

The parties agree they are equally responsible for the costs of the conciliation,
includingroomhire,ADC'snonrefundableregistrationfeeasspecifiedinSchedule
1,anyfurtheradministrationfeesduetoADCasspecifiedinSchedule1,andthe
conciliatorsfee(ofwhich10%ispayabletoADC)andanyotherdisbursements.

(b)

ThepartiesshallforwardtoADCtheirhalfshareorothersuchproportionofthe
securitypaymentasrequiredbytheseGuidelines.

(c)

TheconciliatorandADCmaysubmitprogressiveinvoicestothepartieswhichcan
bedrawndownagainstthesecuritydeposit.

(d)

Intheeventthatthesecuritydepositisinsufficienttocovertheanticipatedfees
and disbursements of the conciliator or ADC the parties agree to submit such
furthersecuritydepositasmaybereasonablyrequestedbyADCortheconciliator.

(e)

If the further security deposit is not received by ADC within seven (7) days of
ADC'sortheconciliator'srequest,(orsuchshorterperiodasADCortheconciliator
mayreasonablyrequire),theconciliatorandADCmaysuspendprovisionoftheir
services in the conciliation until such time as the further security deposit is
received.

(f)

In the event that the conciliation is suspended in accordance with the above
clause the parties agree that neither ADC, its officers, employees, servants or
agentsnortheconciliatorshallhaveanyliabilitywhatsoevertothepartiesandthe
parties will indemnify ADC, its officers, employees, servants or agents and the
conciliatorfromandagainstanysuchclaimbyanyperson.Thisdocumentmaybe
producedandrelieduponasacompletedefencetoanysuchclaim.

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SCHEDULE1
1.

2.

Foreachconciliation,ADCchargesaregistrationfeeasfollows:
a.

$1,100(inclusiveofGST)whichcoversregistrationandthefirst5hoursof
administrationbyADC;or

b.

inthecaseofaconciliationinwhichtheclaimsofmorethanoneaggrieved
party are consolidated, ADC may in its absolute discretion charge each
party $550 (incl. of GST) which covers registration the first 5 hours of
administrationbyADC.

ADCmayinitsabsolutediscretionchargeafurtheradministrationfeeattherateof
$250.00(incl.GST)perhourafterthefirst5hoursofadministrationcoveredbythe
registrationfee.

Thisdocumentmaybecopied,butonlyiftheADC
Copyrightstatementbelowisincludedonthecopies:

AustralianDisputesCentre,2015

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