6 - Perspectives and Challenges of Multi-tier Dispute Resolution in Japan

Summary

Multi-tier dispute resolution, a combination of mediation and arbitration or litigation, has recently been gaining in importance in international business transactions. While arbitration has the advantages of being confidential, professional and effective across borders owing to the 1958 New York Convention, mediation, geared towards amicable settlements, is time- and cost-efficient and supportive of preserving commercial relationships. Both methods can complement each other in ‘med-arb’, ‘arb-med’ or ‘arb-med-arb’. This chapter discusses cardinal issues surrounding multi-tier dispute resolution in Japan, particularly the enforcement of agreements to mediate as a condition precedent to arbitration or litigation, and the methods of combining mediation and arbitral procedures. At the same time, this contribution sheds light on recent developments and efforts being made in Japan to enhance international arbitration and mediation. This trend will soon bring about legislative reforms and may possibly result in the ratification of the 2019 Singapore Convention on Mediation.