FAQ

What is mediation?
Mediation is a confidential process through an independent and neutral third party ‘mediator' who assists the disputants to negotiate and reach a mutual decision to their dispute.    Trained mediators do not impose a decision upon the parties, unlike arbitration. Through their facilitation and technical skills they assist the parties to explore the issues in depth and reach the best possible joint decision to the dispute.
What is arbitration?
Arbitration is a procedure in which a dispute is submitted, by agreement of the parties, to one or more arbitrators who make a binding decision on the dispute. In choosing arbitration, the parties opt for a private dispute resolution procedure instead of going to court.
What is the “Free Arbitration Zone”?
The Free Arbitration Zone (FAZ) guarantees that all international disputes under the BCDR-AAA, where those involved agree to be bound by the outcome, will be final and binding and not subject to challenge in the Kingdom of Bahrain. In the FAZ the BCDR has the jurisdiction to hear a dispute if the parties agree in writing to settle it through the Chamber. For the FAZ to work effectively, parties must agree that a non-Bahraini law will be applied and that the award should be enforced outside of Bahrain and in the country whose law has been selected to govern the dispute.
What are the advantages of ADR?
In contrast to litigation, arbitration offers simpler, client-focused rules and more flexible scheduling leading to a faster resolution reached within a fixed time period with the benefits of the awards generally being confidential. The fixed time period also leads to fixed, and therefore reduced, costs. In addition, disputing parties may choose the location and governing law for the arbitration. This is assisted by the New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards allowing for the enforcement of arbitral awards in other countries with relative ease. ADR is also enforceable, independent, and has set international standards guaranteeing quality and professionalism.
Who chooses the mediator or arbitrator?
The BCDR-AAA can provide the parties with experienced mediators and arbitrators, and ensure quality management with the support of the in-house case management office and its trained professionals. Furthermore, parties will have access to the AAA's international roster of mediators and arbitrators. Parties can specify to the BCDR-AAA what particular background and expertise they are seeking and the Chamber will provide them with a list of candidates matching the required qualities. Alternatively, parties can choose a mediator or arbitrator independently.
Where will the arbitration or mediation take place?
In accordance with Article 13 of the BCDR-AAA Arbitration Rules, if parties cannot agree on the place of mediation or arbitration, the administrator may provisionally determine the location. This is subject to the power of the tribunal to determine the final place of arbitration within 60 days after its constitution. All such determinations shall be made while taking into consideration the contentions of the parties and the circumstances of the dispute to be resolved.
What are Statutory ADR Tribunals?
Under Section One of the Royal Decree No. (30) of 2009, the Chamber shall have jurisdiction to settle the following disputes, originally within the jurisdiction of Bahrain courts or other entities having judicial jurisdiction, for cases in which the value of the claim exceeds BD500,000 (approximately US$1.3 million) and: <ol> <li> Disputes among financial institutions licensed according to the provisions of the Law of Central Bank of Bahrain or between these institutions and other institutions, companies, and individuals.</li> <li>International Commercial Disputes. The dispute shall be deemed international if the location of one of the disputant parties or the place where a substantial part of the organisations of the commercial relationship is to be performed, or the location most closely connected with the dispute is outside the Kingdom. </li> </ol> A dispute is deemed commercial if its subject matter, contractual or non-contractual, concerns relationships of a commercial nature including any transaction of supplying goods or services or the exchange thereof, distribution agreements, commercial representation or commercial agency, managing rights before others, hiring to purchase, construction of factories, consultation services, engineering works, issuing licenses, investment and financing, banking transactions, insurance, franchising agreements, joint ventures, any other forms of industrial or commercial cooperation, and transporting commodities or passengers by air, sea or land.
Can the verdict be challenged?
Parties to the dispute may challenge before the Cassation Court requesting nullification of the award issued by the Dispute Resolution Tribunal in any of the following cases: <ol> <li>The challenging party was not properly served a notice of the appointment of a member of the Dispute Resolution Tribunal or the dispute resolution procedures, or was not enabled to present his defence;</li> <li>The composition of the Dispute Resolution Tribunal or the dispute resolution procedures is contrary to what is stipulated in the regulation;</li> <li>The award of the Dispute Resolution Tribunal contradicts the public order in the Kingdom of Bahrain;</li> <li>If an act of deception or fraud that influenced the Dispute Resolution Tribunal award was committed by a party or his representative;</li> <li>If after the Dispute Resolution Tribunal award, an admission that papers upon which the award was based were forged or were adjudicated forged, or if the award was based upon testimony of a witness which was adjudged false;</li> <li>If after the Dispute Resolution Tribunal award, a party obtained decisive papers of the case, the submission of which was obstructed by his opponent;</li> <li>If the Dispute Resolution Tribunal award ruled in a matter not claimed by the opponents or by more than what had been claimed. However, if it was possible to isolate the orders related to the claims of the opponents from the other orders, then it is not permissible to annul from the dispute resolution tribunal award other than that part which contains the orders related to the matters which the award had adjudicated in matters not claimed by the opponents or by more than they claimed;</li> <li>If the dispute resolution tribunal award contradicts another award having res judicata status provided that all the opponents in both cases are the same persons and status and the subject matter of the case is the same subject matter in the previous case.</li> </ol>
How are fees determined in Statutory ADR Tribunal cases?
Fees are determined according to the Law of Judicial Fees and are calculated based on the amount of the claim or the relief sort. Case fees are divided into three types: relative fee for claims of a determined value; fixed fee for claims of an undetermined value; and, other fixed fees. Full details can be found under the<a href="http://www.bcdr-aaa.org/en/filing-a-case/section-1/filing-fees.html"> Filing Fees</a> section.
How is the Dispute Resolution Tribunal constituted?
In accordance with Article 40, the Tribunal is required to be constituted of three members within two months from the date a case is filed. By default, the Tribunal must be made up of two judges from the Chamber's Roster of Judges and should include a Registrar appointed as a third member. The Registrar will be taken from the Chamber's Neutrals Roster or from that of an accredited BCDR-AAA institution. The Registrar will be appointed based on experience, qualifications and the nature of the case. Both parties may agree to each appoint one member to the Tribunal. In this instance, it must be agreed that each party will equally incur the fees and expenses of two of the appointed Tribunal members. In both cases, the Tribunal is to be chaired by the senior judge. The Chamber's Judge Roster is prepared by the CEO, taken from a list of judges delegated by the Supreme Judicial Council, being of High Court of Appeals level or higher. The members of The Tribunal shall be neutral and independent. When designated and/or being appointed to a case, each member is under obligation to disclose to the Chamber's Registrar any condition or reason that may raise doubts with regard to the member's neutrality or independence.
Under which law will the tribunal be held?
Parties to the dispute may agree upon the applicable law relevant to the subject matter of the dispute provided that the provisions of the agreed law do not contradict the public order in the Kingdom. If the parties do not agree upon the applicable law, the Law of Bahrain shall be the applicable law to the subject matter of the dispute. For further information, please refer to the <a href="http://www.bcdr-aaa.org/en/rules-regulations/legislative-decree-30-establishing-the-bcdr-aaa.html">Legislative Decree No.(30)</a>.
Can I choose my own lawyer?
Yes. However, it is not permitted for non Bahraini lawyers to represent disputants unless accompanied by a Bahraini lawyer licensed before the Cassation Court. For further information, please refer to the <a href="http://www.bcdr-aaa.org/en/rules-regulations/legislative-decree-30-establishing-the-bcdr-aaa.html">Legislative Decree No.(30)</a>.
Where is BCDR-AAA?
The BCDR-AAA is situated in the Diplomatic Area of Manama, Bahrain and is easily accessible from within the region. Bahrain International Airport is only a short car journey away and is serviced by 38 airlines, connected to over 50 destinations worldwide.
What is the Chamber’s jurisdiction by law?
The Chamber has jurisdiction to settle the following disputes originally within the jurisdiction of Bahrain courts or other entities having judicial jurisdiction, for cases which the value of the claim exceeds BD500,000: <ol> <li>Disputes among financial institutions licensed according to the provisions of the Law of Central Bank of Bahrain or between these institutions and other institutions, companies, and individuals.</li> <li>International Commercial Disputes. The dispute shall be deemed international if the location of one of the disputant parties or the place where a substantial part of the obligations of the commercial relationship is to be performed, or the location most closely connected with the dispute is outside the Kingdom.</li> </ol> In addition, parties to the dispute before the Chamber may agree upon the applicable law relevant to the subject matter of the dispute provided that the provisions of the agreed law do not contradict the public order in the Kingdom. If the parties did not agree upon the applicable law, the Law of Bahrain shall be the applicable law to the subject matter of the dispute. Furthermore, if the parties have agreed to choose a law other than the Law of Bahrain, parties are obliged to submit that law to the Dispute Resolution Tribunal in accordance with the regulations and procedures cited in the regulation.
When should parties contact the BCDR-AAA?
Parties should contact BCDR-AAA when there is agreement by all parties in the dispute to seek a resolution outside of litigation. See "How do I file a case?" below for further details on instigating a case at BCDR-AAA. Parties need not wait until they are in conflict to approach the BCDR-AAA. Pre-emptive action can be taken in the form of a future disputes clause inserted into contracts that are tailored to the parties' needs.   Furthermore, if the contract already exists, parties can work with the BCDR-AAA to administer the arbitration or mediation clause via a post-contract dispute clause. Finally, if parties are already in the midst of a dispute, the BCDR-AAA can assist in bringing them to the table when there is no mention of ADR in the contract.   Model clauses are available on this website, <a href="http://www.bcdr-aaa.org/en/services/draft-clauses.html">Draft Clauses</a>, and parties are encouraged to contact us for further information.
What are the accepted languages for BCDR-AAA cases?
Parties to the dispute may choose the language by consensus. If the parties do not agree upon a chosen language for the dispute resolution procedures conducted before the Chamber: for Section One cases, Arabic will be the language to be used; under Section Two, if a chosen language cannot be agreed, the administrator will determine the most appropriate language.
How do I file a case?
BCDR-AAA has created a user-friendly process to file a case for any type of dispute resolution case, regardless of geographic location. To file a case simply visit the ‘<a href="http://www.bcdr-aaa.org/en/filing-a-case/">Filing a Case</a>' section of our website and follow the instructions. If you would like to discuss this further or have any questions, a fully trained, bilingual team of staff is always ready to answer any questions. Simply send us a question through the email section on ‘<a href="http://www.bcdr-aaa.org/en/contact-us.html">Contact Us</a>', or alternatively pick up the phone and call us on: +973 17-511311.
How much will it cost?
Under Section One: Statutory ADR Tribunal, all fees are calculated in accordance with the Kingdom of Bahrain's Judicial Fees Legislative Decree and are based on the amount of the claim or relief being sought. The full fee structure can be found under the <a href="http://www.bcdr-aaa.org/en/filing-a-case/section-1/filing-fees.html">Filing Fees</a> section of this website.
Is the BCDR-AAA an independent body?
Yes. The July 2009 statute establishing the BCDR-AAA into Bahraini law provides for independence "by statute" and the Chamber's own mission statement guarantees the Chamber's independence. In addition, the unique joint venture with the American Arbitration Association indicates the independence of the Chamber, which is reflected through the appointment of two senior members of the AAA, the CEO and SVP on to the BCDR-AAA's Board of Trustees.
Who manages the cases at BCDR-AAA?
Each case that appears before the BCDR-AAA is managed by an allocated ‘Case Manager'. The Case Manager is an independent, neutral administrator for the dispute and will remain with the case from the moment of filing to the closing of the case. Case Managers duties include: setting and managing deadlines; arranging meeting times for the exchange of all case documents and memoranda; filing of all submissions; requesting evidentiary procedures and overseeing the notification process.
Who are the mediators and arbitrators?
In addition to the BCDR-AAA's internationally trained mediators and arbitrators, parties will also have access to the AAA's international roster of mediators and arbitrators. Parties can specify to the BCDR-AAA what particular background and expertise they are seeking and the Chamber will seek to provide them with a list of candidates possessing those qualities. Alternatively, the parties can choose a mediator or arbitrator independently.
Does the BCDR-AAA invest in training and development?
Training and development of mediators and arbitrators locally and across the region from legal and non-legal backgrounds is very important. The BCDR-AAA invests heavily in training to an international standard such as at the AAA in New York and the Chartered Institute of Arbitrators (CIArb) in London as well as providing workshops for lawyers and judges.

BCDR-AAA - Bahrain Chamber for Dispute Resolution.

FAQ