Qatar
In your jurisdiction, are there any formal ADR procedures available for resolving commercial disputes other than litigating (or arbitrating) to a final hearing?
Yes, there are multiple ADR procedures available in Qatar such as expert determination, mediation and conciliation.
Expert determination is a process whereby the parties agree to jointly appoint an independent expert to determine specific issues in dispute. The process of expert determination is usually set out in a written agreement between the parties, which will set out the terms of reference for the expert, the procedure to be followed, and the timeframe for the expert to make a determination. The parties can also agree to use a certain set of rules to govern the process. Expert determination can be a useful tool for resolving disputes in a cost-effective and timely manner, particularly where the parties want a quick and final resolution to a technical issue.
Mediation is where the parties appoint an independent, impartial third party to facilitate the resolution of a dispute between them. The mediator cannot make a binding decision or impose a solution on the parties but can assist them in reaching a mutually acceptable settlement. Mediation is a flexible, confidential and informal process.
Conciliation is a similar process to mediation. The main difference is that a conciliator will be asked by the parties to provide a non-binding settlement proposal.
Does engaging in ADR have any effect on potential or existing litigation or arbitration?
The new mediation law, Law No. 20/2021, on the Issuance of the Law on Mediation in the Settlement of Civil and Commercial Disputes (the “Mediation Law”), was issued on November 4, 2021. This legislation represents a significant commitment by Qatar to facilitate and encourage the use of mediation as an efficient alternative to litigation. Key exclusions from this law under Article 3 include urgent matters, disputes involving state-owned enterprises like Qatar Energy, tax-related issues, and scenarios where pre-existing arbitration or alternative dispute resolution mechanisms are in place.
The law consists of 33 articles that govern various aspects of mediation, including the requirements and format of mediation agreements, qualifications of mediators, confidentiality of the process, and enforcement of settlement agreements. Specifically:
- according to Article 18, if a plaintiff starts a court case despite an existing mediation agreement, the court is required to dismiss the case if the defendant contests this based on the agreement. Moreover, the plaintiff could face a fine equivalent to double the court filing fees
- under Article 19, if a party does not comply with a mediation settlement agreement, or under Article 27 if a plaintiff files a lawsuit related to the settled matter, the court can impose fines up to QAR20,000
- Article 17 stipulates that parties are exempt from paying judicial fees if they settle their lawsuit through mediation
- the initiation of mediation suspends the legally prescribed periods for filing lawsuits, as outlined in Article 22
The Mediation Law strongly emphasizes the importance of keeping mediation discussions private, with fines of up to QAR20,000 for any breaches of this confidentiality. Additionally, the law outlines clear guidelines on how mediation should be concluded and defines the roles courts play throughout the mediation process. This is designed to make resolving disputes smoother and less contentious, while also keeping the door open for litigation if mediation does not resolve the issues.
Separately, the Qatar International Court and Dispute Resolution Center (“QICDRC”) has also introduced its own mediation rules and it encourages mediation. The court features a mediation office that can administer mediations at the direction of the court, the Employment Standards Office, the Regulatory Tribunal, or through mutual agreement between the parties involved.
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 Singapore Mediation Convention was ratified by Qatar in March 2020. This demonstrates the country’s commitment to supporting international mediation as an effective method for resolving cross-border commercial disputes.
Can the parties agree, in advance of any potential dispute, to engage in ADR?
Yes. A recent judgment by the First Instance Investment and Trade Court set a precedent on the enforceability of a mediation clause pursuant to Qatar Mediation Law No.20/20211. The court dismissed a lawsuit based on a jurisdictional objection raised due to the existence of a Mediation Clause in the contract. If a claimant submits a case in the court for which there is already a mediation clause, the court shall dismiss the case (if the defendant raises such challenge) and impose a fine on the claimant equal to double the Court fees.
When does ADR generally take place?
ADR can take place any time, including before or during litigation or arbitration.
Is ADR subject to without prejudice privilege and/or confidential? If not, is there any other means to protect confidential information?
Under Article 30 of the Mediation Law, all discussions, offers, negotiations, and documents related to mediation are considered confidential by default. Unauthorized disclosure of any of these confidential elements can result in a penalty, with fines starting from a minimum of twenty thousand Qatari riyals. Additionally, QICDRC Mediation Rules, clauses 16 and 17 state that any agreement between the parties shall not be disclosed, except where it is necessary and all discussions, negotiations and documents prepared for or introduced in the mediation process shall be without prejudice.
Does the output from ADR create precedents?
No. ADR in Qatar is a private process.
Who bears the costs of ADR?
Costs are allocated by agreement. The specific allocation of costs can be influenced by several factors, including the terms of the contract, the type of ADR method used, and the outcome of the dispute resolution process.
Is your jurisdiction subject to any specific rules for cross border ADR?
Yes, as we have stated above, Qatar has ratified the Singapore Mediation Convention.
Are there any particularly unusual features of ADR in your jurisdiction that you are aware are different to other jurisdictions?
Article 5 of the Mediation Law has a requirement regarding the mediators’ qualification, who must be fully competent, uphold good conduct and reputation, be recognized for their integrity and impartiality, and possess expertise in their field. Additionally, they must have not been convicted of a crime involving moral turpitude or dishonesty.
Contacts
© Eversheds Sutherland. All rights reserved. Eversheds Sutherland is a global provider of legal and other services operating through various separate and distinct legal entities. Eversheds Sutherland is the name and brand under which the members of Eversheds Sutherland Limited (Eversheds Sutherland (International) LLP and Eversheds Sutherland (US) LLP) and their respective controlled, managed and affiliated firms and the members of Eversheds Sutherland (Europe) Limited (each an "Eversheds Sutherland Entity" and together the "Eversheds Sutherland Entities") provide legal or other services to clients around the world. Eversheds Sutherland Entities are constituted and regulated in accordance with relevant local regulatory and legal requirements and operate in accordance with their locally registered names. The use of the name Eversheds Sutherland, is for description purposes only and does not imply that the Eversheds Sutherland Entities are in a partnership or are part of a global LLP. The responsibility for the provision of services to the client is defined in the terms of engagement between the instructed firm and the client.