- Informal Mediation is the beginning of the formal DRC procedures.
- There are certain filing requirements as well as a twenty-one day timeframe within which the parties work towards a resolution.
- Informal mediation affords both parties with an opportunity to submit a written account of what transpired, along with supporting documentation.
- Once both disputants have had a chance to contribute, the DRC staff will help them reach an amicable, voluntary settlement.
- If the parties cannot agree to settle their dispute, a formal mediation or an arbitration option may be elected.
- Formal Mediation is an option that can be used regardless of the dollar value of the claim.
- Both parties must agree to use this option and the mediation is carried out by an independent third party mediator that can be selected from a roster maintained by DRC.
- If the parties do not agree to use formal mediation, or should a mediation not succeed in generating a settlement acceptable to both parties, then either party may proceed with arbitration.
- Unlike arbitration, all of the details of a formal mediation remain confidential. If a party later defaults on their obligations, the terms of the settlement can be enforced the same as an arbitration award, provided the parties execute a written settlement agreement with the mediator.
DRC Membership is an important part of our screening for new trading partners. DRC has been a great help, not only in resolving disputes, but also with their educational initiatives and involvement in developing best practices within the industry.