A New Practice Direction from Malaysian Chief Justice on Mediation

The Chief Justice of Malaysia, Tun Zaki Azmi has issued a  new practice direction to  the judiciary to encourage mediation in the Malaysian courts. These judiciary worldwide are sending a clear message to litigants that the courts should not be seen as the first recourse to justice and now disputing parties will have the option of going for court assisted mediation, a free service to the public as long as solicitors and barristers are not engaged or the option of a special one-day mediation at the Malaysian Mediation Centre of the Bar Council.

Mediation has become very popular in Kuala Lumpur. This new practice direction of the courts brings more formality to this process which has been ongoing since the start of the year with judges nudging the parties along towards mediation and other alternative dispute resolution processes.

In a recent communication in support of the Chief Justice’s new practice correction, the Malaysian Bar Council president, Ragunath Kesavan urged members to encourage their clients to consider the non-advesarial process offered or a judge-led/court-assisted mediation.

According to the Malaysian Court Service, between March and September,  27% (202) of the cases had been successfully mediated, 30% (228) were unsuccessful and 43% (327) were still pending.

Federal Court judge Datuk Seri Raus Sharif, managing judge of the Commercial Division, said parties in 228 commercial cases there agreed to court-assisted mediation between March and July 15 and that 31% (71 cases) had been successfully mediated and disposed of.

“It is still voluntary, but we hope the mindset of parties will change with time,” he said, adding that parties maintained their right to proceed to trial if mediation failed.