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ISTANA KEHAKTMAN
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Our Ref i JK/MA 38 Jld .5

All HighCourtJudges;
DaLe
')3 August 2010

All JudicialCommissioners of the HighCourt;

AIISessions CourtsJudges;
All Registrarsof the HighCourts;
All Magistrates;
All Registrarsof the SubordinateCourts;
Malaysia.

PracticeDirectionNo.5of 2010
PracticeDirectionon Mediation

1. The Chief Justiceof Malaysiaherebydirectsthat with effectfrom 16

August2010,all Judgesof the HighCourtand its DeputyRegistrars and all
Judgesof the Sessionscourt and Magistrates and their Registrarsmay,at
the pretrialcasemanagement stageas stipulated underorder 34 Rule4 of
the Rulesof the HighCourt1980or by orderfordirections providedin Order
19 Rule 1(1) (b) of the Subordinate CourtsRule 1980,give such directions
thatthe partiesfacilitatethe settlementof the matterbeforethe courtby way
of mediation.

1 .1 Theterm"Judge"in thisPracticeDirection includesa Judgeor Judicial

Commissioner of the High Court, Judge of the SessionsCourt,
Magistrate
or a registrarof the HighCourt.

2. Objective

2 .1 The objectiveof this practicedirectionis to encouragepartiesto arrive

at an amicablesettlement withoutgoingthroughor completing a trialor
appeal.The benefitof settlementby way of mediationis that it is
acceptedby the parties, expeditiousandit is final.

..-..,.'.'..,:;......].'.,,.....-.'..'.....
(Sila nyatakannjukan kami apabila nrcnjawabsurat ini)
2.2 This PracticeDirectionis intendedto be onlya guidelinefor setilement,
The Judgeand the partiesmaysuggestor introduce any othermodes
of settlementsso long as such suggestionsor directionsare
acceptableto the parties.

2.3 Advocatesand solicitorsshall cooperateand assist their clientsin

resolving
the disputein a conciliatory
andamicablemanner.

3. Whento suggest

3.1 Judgesmay encouragepartiesto settletheir disputesat the pretrial

casemanagement or at anystage,whetherpriorto, or evenaftera trial
has commenced.lt can even be suggestedat the appealstage.A
settlementcan occurduringany interlocutory application,
e.g. at an
application
for,summary judgment,strikingout or at anyotherstage.

4. Types of cases

4.1 The followingare examplesof cases which are easy to settle by

mediation,
e.g;

(a) Claimsfor personalinjuriesand other damagesdue to road

accidentsor any othertortiousacts becausethey are basically
monetaryclaims;

(b) Claimsfor defamation;

(c) Matrimonialdisputes;

(d) Commercial
disputes;

(e) Contractual
disputes;and

(0 Intellectual
Propertycases.

5. Modesof Mediation

5.1 Mediation
maybe in thefollowing
modes:

(a) Judge-led
mediation;
or

(b) by a mediator by bothparties.

agreeable
5 .2 lf a Judgeis ableto identifyissuesarisingbetweenthe partiesthatmay
be amicablyresolved,he shouldhighlight thoseissuesto the parties
and suggesthowthoseissuesmay be resolved.

5.3 The Judgecan requestto meetin hischamberin the presenceof their

counsel,and suggestmediationto the parties.lf they agree to the
mediationthen the partieswill be askedto decidewhethertheywould
wishthe mediationto be thejudge-ledor to be referredto a mediator.

5.4 The procedurein AnnexureA will applyto a judge-ledmediation and

the procedurein AnnexureB will applyif it is referredto othermediator.

6. General

6.1 Agreementto Mediate

(a) When the partiesagree to mediate,each of the partiesshall

complete
the mediationagreementas in "Form1".

6.2 Confidentiality

(a) All disclosures,

admissions and communications madeundera
mediation session are strictly "without prejudice". Such
communications do notform partof any recordand the mediator
shall not be compelledto divulgesuch recordsor testifyas a
witnessor consultantin any judicialproceeding,unlessall
parties to both the Court proceedingsand the mediation
proceedings consentto its inclusion
in the recordor to its other
use.

6.3 Resultsof Mediation

(a) A returndate of not morethan one (1) monthfrom the datethe

case is referredto mediation,shallbe fixedfor partiesto report
to the Courton the progressof mediation; and in the eventthe
mediation processhasended,the outcomeof suchmediation.

(b) Wheremediation failsto resolvethe dispute,the Courtshall,on

the applicationof eitherof the partiesor on the Court'sown
motion,givesuchdirections as the Courtdeemsfit.

(c) Exceptwith the agreementof the Court,all mediationmust be

?
 completednot laterthanthreemonthsfromthe datethe caseis
referredfor mediation.

(
(DATO', IM
Chief
Federal of Malaysia

c.c

ChiefJusticeof Malaysia
lstanaKehakiman
PUTRAJAYA

AttorneyGeneralof Malaysia
AttorneyGeneral'sChambers
PUTRAJAYA

PresidentCourtof Appeal
lstanaKehakiman
PUTRAJAYA

ChiefJudgeof Malaya
lstanaKehakiman
PUTRAJAYA

ChiefJudgeof SabahandSarawak
lstanaKehakiman
PUTRAJAYA

DeputyChiefRegistrar
lstanaKehakiman
PUTRAJAYA

Registrarof the Courtof Appeal

lstanaKehakiman
PUTRAJAYA
Registrar
of the HighCourtin Malaya
lstanaKehakiman
PUTRAJAYA

Registrar
of the HighCourtin SabahandSarawak
HighCourtof Kuching
SARAWAK

Directors
of the courtsof Malaysia.

Director
of Management
Division
lstanaKehakiman
PUTRAJAYA

Headof Judicial
Adiministration
Division
lstanaKehakiman
PUTRAJAYA

Headof Information Division

Technology
lstanaKehakiman
PUTRAJAYA

President
Malaysian BARCouncil
MajlisPeguamMalaysia
1 3 , 1 5d a n1 7 L e b o hP a sa rB esar
5OO5O KUALALUMPUR

Chairman
SabahLawAssociation
3rd Floor,120GayaStreet,
88000 KotaKinabalu. Sabah
Tel : (088)232662 Email: sabahlaw@tm.net.mv

Chairman
TheAdvocates' Association
of Sarawak
TheBarRoom,Kompleks Mahkamah
JalanGersik,PetraJaya
93050Kuching. Sarawak
Tel : 082-448077
FaxNumber:082-449427
E-mail: aas@sarawak-advocates.
org.mV
 E (JU D GE -L EMEDIATION)
A N N E X U RA D

1. Unlessagreedto by the parties,the Judgehearingthe caseshouldnot

be the mediatingJudge.He shouldpassthe caseto anotherjudge.lf
the mediationfailsthen it will revertto the originaljudgeto hearand
completethe case.

2. The procedure
shallbe in the manneracceptable
to bothparties.

3. Unlessagreedto by the parties,the Judgewill not see the parties

withouttheirlawyers'presenceexceptin caseswherethe partiesis not
represented.

4. lf the mediationis successful,

the Judge mediatingshall recorda
consentjudgmenton thetermsas agreedto by the parties.

ANNEXUREB (MEDIATION
BY ANY OTHERMEDIATOR)

1 . Me d i a to r

1 .1 A mediatormay be chosenby the partiesfromthe list of certified

mediatorsfurnishedby the Malaysian
Mediation Centre("MMC")
set up underthe auspicesof the Bar Council,or any other
mediatorchosenby the parties.

1.2 Such a mediatorshallfacilitatenegotiationbetweenthe parties

in the disputeand steerthe directionof the mediationsession
with the aim of findinga mutuallyacceptablesolutionto the
dispute.

1 .3 lf the parties'so
desiretheymay appointmorethan(1) mediator
to resolvetheirdispute.

1 .4 Any mediatorso chosenby the partiesmay agreeto be bound

by the MMCCodeof Conductand the MMCMediation Rules,or
not at all.

2. Procedure

2.1 lf partiesagree that they be bound by the MMC Mediation

Rules,upondirectionof the Court,the Plaintiff's
solicitorshall,
within (7) calendardays notifyin writingto'the MMC. Upon
receivingsuch notification,
MMC shall then proceedwith the
6
 F

mediationprocessas providedunder the MMC's Mediation

Rules.

3. SettlementAgreement

3.1 Any agreementconsequentupon a successfulmediationmay

be reducedintowritingin a SettlementAgreementsignedby the
partiesbut in any casethe partiesshallrecordthe termsof the
settlementas a consentjudgment.
FORM1

A GR EEMENT
TO M EDIATE

CaseNo
Judge/
Mediator

Parties : Plaintiff

Defendant

ThirdPariy

Mention/HearingDate

We, the solicitorsrepresentingthe abovementioned parties hereby

consentto referthismatterfor mediationfor the purposeto reachan amicable
of all parties.
settlemeniand to the satisfaction

We also agreethat all disclosures, admissions and communications

made under a mediationsessionare strictly"withoutprejudice". Such
communications do not form part of any recordand the mediatorshallnot be
compelledto divulgesuch recordsor testifyas a witnessor consultantin any
judicialproceeding,
unlessall partiesto boththe court proceedings and the
mediationproceedingsconsentto its inclusionin the recordor to its otheruse.

(Plaintiff's
Solicitor's
Signature) (Defendant's
Solicitor's
Signature)

(ThirdParty'sSolicitor's
Signature)
Dated: