International Arbitration, Mediation, and ADR in Taiwan

Insights 2021/02/18
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International Arbitration in Taiwan

There are four established arbitration bodies in Taiwan: the Chinese Arbitration Association; the Taiwan Construction Arbitration Association; the Chinese Construction Arbitration Association; and Chinese Labor Dispute Arbitration Association. If an arbitration clause between the parties is in force, they will be qualified to enter an arbitration award regarding an international dispute. However, if the arbitration award is determined pursuant to foreign laws other than Taiwanese laws, it shall be deemed as a foreign arbitration award pursuant to Article 47 of the Taiwanese Arbitration Law. A foreign arbitration award shall be recognized by Taiwanese Courts for enforceability according to Article 49 of the Taiwanese Arbitration Law. Further to this, Taiwanese Courts shall oversee the selection and of disqualification of arbitrators and the revocation of an illegal arbitration award which has procedural or evidentiary defects. The court can also investigate evidences if requested by one of arbitration bodies mentioned above.

Mediation and ADR

Taiwanese laws provide three main kinds of alternative dispute resolution: mediation; settlement in court; and arbitration. All of these have become more and more important and commonly used in Taiwanese society, whether in criminal cases or civil disputes. In a criminal law case, a defendant can get a more lenient sentence when he reaches a settlement with the victim.

Generally, mediation and settlement in court are commonly used in small cases, whereas arbitration is usually adopted in very professional cases like financial, construction, labour or intellectual property disputes. Mediation is also mandatory in family law cases under the Taiwanese Code of Family Procedure.

The mediation result as shown on the mediation transcript, issued either by the court or by the local mediation committee, will be enforceable like a judgment.

Authour: Hung Ou Yang

Managing Partner
Taipei
+886-2-2707-9976
[email protected]

Disclaimer: While every effort has been made to ensure the accuracy of this publication, it is not intended to provide legal advice as individual situations will differ and should be discussed with an expert and/or lawyer. For specific technical or legal advice on the information provided and related topics, please contact the author.