About Neutral Evaluation

What is Neutral Evaluation?

Neutral Evaluation (NE) is a confidential process by which the parties to a dispute may obtain a reasoned opinion on the facts, evidence and legal merits of specific issues within their case from an independent third party known as a Neutral. Alternatively, NE can also be utilised to resolve entire cases if parties so wish.

What are the advantages of Neutral Evaluation?

• Streamlines Issues – Assists in identifying, clarifying and focusing on the key issues and supporting evidence required to prove one's case.
   

• Reality Check – Provides objective, independent and unbiased evaluation of the merits of the case by a respected, independent Neutral. This serves as an indication for parties of a probable outcome and its costs should the dispute be heard by a court.
   

• Speed and Economy – Resolves disputes faster and more economically. This avoids the destructive effect and the delay of on-going litigation in resolving a dispute. Corporate resources are freed up to focus on the parties’ core business.
   

• Facilitates Settlement Negotiations – When the Neutral's opinion is rendered, parties are in a better position to negotiate solutions.
   

• Confidentiality – The Neutral's opinion is confidential and the information disclosed during the process is on a without prejudice basis.

What types of disputes are suitable for Neutral Evaluation?

Generally, all types of civil disputes are suitable so long as parties are committed to the prompt and cost effective resolution of the dispute, and participate in the process in good faith.

Neutral Evaluation may be best suited for disputes that would be filed in the High Court of Singapore.

When do you use Neutral Evaluation?

Disputes with the following characteristics may be particularly suited:

• Resolution of specific issues which will streamline litigation or facilitate amicable settlement - These may include preliminary issues which can be disposed of early, allowing for time and costs to be saved if the matter proceeds to trial. Resolution of specific issues could also act as a reality check and facilitate amicable settlement.
   
• Technical or specialised subject matter – In areas such as intellectual property, medical negligence, defamation, shipping, banking and finance, construction or where the case may turn on expert opinion, a specialist neutral can be appointed.

How are Evaluators appointed?

SMC, having industry experience, would be able to appoint the right Neutral for the right case. Where the parties prefer freedom of choice in appointing their Neutral, SMC will advise parties and provide a choice of the most appropriate Neutrals for the case, based on the nature of the dispute.