To Len, it will be advised that the parties should waive of any potential conflict of interest. Mediator is a neutral party that is involved in the process. Advantages of Mediation are that it is cheaper and faster than actual litigation process. Unlike conciliation, mediation is not about giving any opinion. It is about the parties reaching a decision. This can be an advantage or disadvantage based on the situation. Mediators should use formalized procedures for conciliation. UNICTRAL, European Union directive for mediation and international rules are applied. Formalized procedures like ICC rules or other informal mediation rules can be applied if the parties involved in the process give consent. This ensures that harmonization of the process is entailed.
Disadvantages of mediation are that there is no formal discovery process. Mediation does not guarantee a solution or stand. Settlement is not guaranteed in this process. Even during the mediation process, the stakeholders involved can file litigation and arbitration. Legal precedent from previous cases of mediation cannot be applied. It is only an informal channel that has been used for cheaper expediency process.
To conclude, mediation should be used in places to avoid costs and reduce litigation times. It is a very flexible process that allows the parties to form their own unique set of contractual terms and agreement. There are a number of advantages to this process. Nevertheless, it also has some inherent issues. Mediation should be the first form of legal remedy employed in cases of any issues by the parties before filing for arbitration.
Issue that has been identified in this case is that the merchandise had become damaged during the course of transportation. S20 states that the risks involved in the transport process are with the seller. Transportation was subcontracted to YSL (Yorkshire shipping limited). The shipper in this case is Moore steel and the Ship owner is YSL. These are potential issues. Purpose of this analysis is to find ways in which Moore Steel can claim from YSL for the liabilities incurred and remedies that are sanctioned by law. Small prints in the Incoterms allow mandates to change based on the nature of the merchandise. Precedent set in the case of Grant v Norway sets the precedent of what factors are considered in the case. While the actual precedent set by the case is debated in the modern times. Factors considered in the bill of lading have been clearly elucidated in this case.