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GUIDE to CONCILIATION AT JSE

OUTLINE OF CONCILIATION AT THE JAPAN SHIPPING EXCHANGE

Fair and Practical Means of Resolving Disputes

    In addition to arbitration, The Japan Shipping Exchange, Inc. ("JSE") offers conciliation under the "JSE Conciliation Rules" (the "Conciliation Rules") as an alternative way of resolving disputes. Under this system, a third party is invited as a conciliator to hear the parties to a dispute in order to settle the dispute amicably.

    In the arbitration proceedings arbitrators examine the validity of a demand made by a party and render an arbitration award binding on the parties, whereas in the conciliation proceedings a compromise between the parties involved in a dispute is sought. The two systems are entirely different in nature.

A Number of Highly Qualified Conciliators

    A successful conciliation system requires discerning and qualified conciliators who can instantly assess the case and a secretariat well experienced in coordinating the proceedings.

    During more than 70 years of facilitating arbitrations and drafting standard forms, JSE has appointed innumerable practitioners with expertise, experience and discernment as arbitrators and/or members on the JSE's Documentary Committee. Most of them have endeavored to share and acquire knowledge directly through such activities as well as through the general meetings of each committee.

    When an application for conciliation is filed, the secretariat recommends to the parties the most suitable candidates from among the persons mentioned above according to their particular needs.

    By the appointment of such conciliators, the JSE secretariat helps to provide equitable, reasonable and practical conciliation which is both speedy and economical.

Attendance of the Parties Is the Key

    JSE conciliation is carried out, in principle, attended by the parties in order that they might explain first-hand the involved in the dispute and their employees details of the dispute and answer questions asked by the conciliator.

    The conciliator may propose a compromise as appropriate, and attendance of a person authorized to make decisions facilitates progress of the proceedings.

    It is, therefore, desirable for the parties to apply for and act in the conciliation themselves, and not be represented by an attorney.

    This booklet introduces by way of examples the various forms required in the JSE conciliation proceedings in order to assist parties to apply for and use JSE conciliation.