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11 J. Int'l Arb. 111 (1994)
MEDALOA: A Practical Technique for Resolving International Business Disputes

handle is hein.kluwer/jia0011 and id is 257 raw text is: MEDALOA: A Practical Technique for Resolving
International Business Disputes
While flying back from Taiwan after a lecture on the use of ADR in the United
States, I invented the term MEDALOA to describe a novel combination of mediation
and last-offer arbitration, both of which have achieved recognition in the United
States as practical dispute resolution processes. This article was written at the
suggestion of the editor of this journal, to describe the mechanics of this new hybrid.
MEDALOA has a nice ring tb it, harmonious with the folklore of the Pacific, which
so encourages peaceful resolution of disputes.
Many international business disputes arise during contractual negotiations, or
involve a contract that may or may not contain an arbitration clause. Others result
from non-contractual relationships. Most business controversies are settled through
direct negotiations, but the parties may sometimes decide to seek the assistance of a
professional mediator. Where parties agree to submit to mediation, they often resolve
their differences. Where monetary issues remain unresolved, the parties may attempt
to close the gap by utilizing a combination of mediation and last-offer arbitration
Many kinds of monetary disputes may be appropriate for MEDALOA: claims by
injured persons against insurance carriers or self-insured businesses; property damage
claims; demands for compensation for breach of contract; disputes over the value of
property or intellectual rights-virtuilly any claim that can be settled for a monetary
amount. MEDALOA can also be used to resolve controversies over negotiated salaries
or market prices under long-term supply contracts.
In mediation, the parties try to settle their dispute, with the help of the impartial
mediator. The mediator may suggest ways to come to an agreement, but is not
authorized to impose any particular settlement upon the parties.
If parties want to use a mediator to help them resolve an existing dispute, they
may enter into a submission to do so. If they are unable to settle the dispute, they still
have the option of arbitrating.
In arbitration, the parties present their case to a neutral person for a final and
binding decision.
When the dispute involves a question of value or a monetary claim, parties may
prefer last-offer arbitration, submitting their last demand and last offer to a neutral
person, authorized to select one or the other, and agreeing to be bound by that
*Former President of the American Arbitration Association, New York, U.S.A.
Copyright © 2007 by Kluwer Law International. All rights reserved.
No claim asserted to original government works.

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