On 1 April 2023, the Singapore International Commercial Court ("SICC") announced that the Supreme Court of Singapore and the Supreme People's Court of the People's Republic of China had signed a Memorandum of Understanding ("MOU") on Cooperation on the management of international commercial disputes in the context of the Belt and Road Initiative ("BRI") through a Litigation-Mediation-Litigation ("LML") framework.
The two courts concluded the MOU in view of the increasing complexity of international commercial disputes particularly in the context of the BRI ("BRI disputes"). The development of an LML framework to resolve BRI disputes is in recognition of the flexibility and efficiency afforded by mediation, which not only saves the parties' time and costs but also preserves business relationships in the course of the dispute resolution process.
Key features of the MOU include the following:
- SICC and the China International Commercial Court ("CICC") will each develop and implement the LML framework for the management of BRI disputes.
- The LML framework in each court may be developed in collaboration with any domestic or foreign mediation expert and any domestic, foreign or international mediation institution in accordance with their respective procedural laws and rules of court.
- Both courts will share information on their LML framework and other dispute management practices, including information on procedural rules, case management protocols, and enforcement processes relating to SICC and CICC.
- Both courts agree to promote the LML framework by recommending to the parties to disputes the adoption of the prescribed LML Model Clauses in appropriate circumstances.
The signing of the MOU demonstrates the strong commitment of the two countries to collaborate to enhance the resolution of BRI disputes.
