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Explaining the Process and Costs

The Arbitration Process

  1. Complete Referral
    Any party to a dispute can refer the dispute to the two phase arbitration process by way of completing the electronic referral form that can be found at the "refer a dispute" in this menu. Alternatively the referral form can be downloaded, completed by hand and sent to the fax number provided at the bottom of the form.
  2. Appointment of a CMO (Case Management Officer)
    This administrative person will be appointed and will be responsible for the management of all the steps in the process. All arrangements will be made by e-mail communication.
  3. Confirmation of Referral
    The CMO will send the electronic confirmation that the referral was received by NAMASA and Equillore. The confirmation will be sent to the referring party within 24 hours.
  4. Referring party will be contacted regarding the initial payment
    The referring party is responsible for the payment of the referral fee of R 3950.00. The referral fee covers the total cost of the first meeting of the process (the conciliation). Although the referring party pays for the referral, one of the issues discussed during the conciliation will be the payment of the referral fee.
  5. Date and venue is arranged
    The date and venue that suits both parties is arranged. The date should provide them with enough time to prepare for the meeting and to submit their Statement of Case.
  6. A mediator is appointed and parties informed electronically
    If one or both of the parties wish to object to the particular mediator, they should contact the Case Management Officer - CMO. Another mediator will then be appointed for the dispute.
  7. Parties are requested to submit a statement of their case
    An electronic request will be sent to both parties by the CMO. The Statement of Case provides the parties with the opportunity to state their side of the dispute. The Statement of Case should preferably not be longer than two pages. The Statement of Case also ensures that the mediator is prepared and informed of the issues and history of the dispute. The mediator will also know the outcome the parties wish to reach. The Statement of Case should be submitted as soon as possible, but at least 4 days before the date of the conciliation.

The two phases of the arbitration process.

Equillore has developed a two tier process for sectional title disputes, conciliation and arbitration.

The initial/first step in the process is a conciliation, chaired by a mediator, which is limited to two hours. The mediator will assist the parties in reaching their own settlement. In this phase of the process the mediator may not make any order. In this process he will inform the parties of their legal position, do reality checks with the parties and assist them in exploring different solutions to their problem.

If the parties are not successful in reaching a settlement, but agree that a further conciliation may help them to come to an agreement, they may have a second conciliation (cost R 3950.00). If the parties find a solution a settlement agreement will be drafted by the mediator which will then be signed by both parties. This settlement agreement is enforceable and can be made an arbitrator's award by any one of the parties.

Only if the dispute cannot be settled will the next phase in the process (the arbitration) take place. The parties (if they are in agreement about this) have the option to request the mediator to act the role of an arbitrator and to make an immediate award based on the information he has available to himself at that stage. The advantage of this decision will be that the mediator, now acting in the capacity of an arbitrator, will bring finality to the dispute without the cost and time involved in postponing the matter for arbitration on a date in the future.

If they cannot agree to the mediator making an immediate award, and if it seems clear that no agreement can be reached, the case will be postponed for a full arbitration. At the end of the conciliation phase the mediator records detailed minutes of the decisions made as outlined above, as well as the issues the parties agree upon and the issues remaining in dispute. The dates and responsibilities for the next steps leading up to the arbitration (any further documents or reports to be submitted) are also recorded. The parties will also be assisted in the election of an arbitrator. The cost involved for a full arbitration will be a management fee of R 3000.00 plus the day fee of the arbitrator elected by the parties. (The parties may even elect the mediator that chaired the mediation to be their arbitrator in the arbitration phase) The parties will be provided with the panel of arbitrators which stipulates their level of seniority, the fees they charge, as well as their areas of expertise that serve. They can therefore budget for the expenses they will incur.

The process up to the next date will then be managed by the same CMO, up to the delivery of the arbitrator's award. At the end of the arbitration the arbitrator will make an award that is final and binding. The arbitrator is contracted to deliver his award within 30 days.