Iraq
In your jurisdiction, are there any formal ADR procedures available for resolving commercial disputes other than litigating (or arbitrating) to a final hearing?
In Iraq, there are no formal, codified ADR procedures specifically established by law for resolving commercial disputes outside of litigation or arbitration. Iraqcurrently lacks a statutory framework governing mediation, conciliation, or other ADR methods. However, parties frequently agree to attempt resolving disputes through informal ADR processes, including negotiation, mediation, and conciliation, before resorting to arbitration or litigation proceedings. The terms, confidentiality, and enforceability of these processes depend largely on the agreement between the parties.
Although ADR is not formally regulated in Iraq, it is increasingly viewed as a valuable means of resolving commercial disputes. Furthermore, Iraq’s signing of the Singapore Convention on Mediation in April 2024 - though not yet ratified - signals potential future formalization and greater acceptance of ADR, particularly in cross-border disputes.
Does engaging in ADR have any effect on potential or existing litigation or arbitration?
Engaging in ADR does not have a direct or formal effect on litigation or arbitration proceedings under Iraqi law. There are no statutory provisions that pause or stay court or arbitral proceedings pending ADR.
Is ADR compulsory and if so are there any consequences if a party fails to engage in ADR? If it is not compulsory are there any plans for this to change?
The Iraqi government has not signed any formal pledge to adopt or consider ADR in all cases, nor is ADR compulsory under Iraqi law. There is currently no statutory requirement for parties to attempt ADR before initiating litigation or arbitration, and no legal consequences for failing to engage in ADR. However, where parties reach a settlement through ADR the settlement may be submitted to the court for approval, at which point it becomes binding and enforceable as a judicial decision. In this way, ADR can effectively bring ongoing litigation to an end.
Can the parties agree, in advance of any potential dispute, to engage in ADR?
Yes, parties may agree to attempt resolving their dispute through ADR before escalating the matter to arbitration or litigation.
When does ADR generally take place?
ADR may take place at any time including before or during arbitration or litigation.
Is ADR subject to without prejudice privilege and/or confidential? If not, is there any other means to protect confidential information?
There are no formal provisions under Iraqi law that specifically grant ADR communications ‘without prejudice’ privilege or statutory confidentiality. Since Iraq does not yet have a comprehensive legal framework governing ADR, such protections are not codified. However, in practice, confidentiality is commonly observed and expected, particularly in mediation and conciliation. The extent of confidentiality will largely depend on the terms of the ADR agreement signed by the parties.
Does the output from ADR create precedents?
No, ADR in Iraq is a private process.
Who bears the costs of ADR?
The allocation of costs is determined by mutual agreement between the parties. This allocation may be influenced by various factors, including the provisions of the underlying contract, the nature of the ADR procedure employed, and the result of the dispute resolution process.
Is your jurisdiction subject to any specific rules for cross border ADR?
There are currently no specific domestic rules in Iraq governing cross border ADR. As mentioned, while Iraq has signed the Singapore Convention on Mediation, it has not yet ratified it, and therefore the Convention is not yet in force domestically.
Are there any particularly unusual features of ADR in your jurisdiction that you are aware are different to other jurisdictions?
Labor disputes in Iraq fall under the exclusive jurisdiction of the Iraqi courts. Consequently, such disputes cannot be resolved through arbitration. Additionally, parties cannot be obligated to resolve disputes through ADR mechanisms. Nevertheless, employers and employees may enter into a settlement agreement prior to the initiation of litigation.
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