Neutral Evaluation
What is Neutral Evaluation?
Neutral Evaluation is a process by which the parties to a
dispute may obtain an objective, non-binding opinion on the
merits of their case from an independent third party (called
the Evaluator) to assist them in resolving their dispute
amicably. All the parties to the dispute have to agree to
have the matter evaluated, as Neutral Evaluation is a
voluntary process.
What are the advantages of Neutral Evaluation?
The Evaluator will render his written opinion within 28 days
after the filing of the parties' case submissions or the
date of the last site visit (if any), whichever is later.
- Savings in Money & Time
Since it is an expedited process, it may cost considerably
less than litigation or arbitration. The amount of
preparation for Neutral Evaluation should be much less than
that required for court or arbitral proceedings.
- Confidential
The parties to Neutral Evaluation can decide that the
matters that are disclosed to an Evaluator are to remain
confidential.
Unlike court proceedings and arbitration, Neutral Evaluation
is flexible and much less formal.
What types of disputes are suitable for Neutral Evaluation?
What types of disputes are suitable for Neutral
Evaluation?
Generally, Neutral Evaluation is suitable for less
complex disputes that do not require much time or resources
to resolve. Examples of cases that are referred for Neutral
Evaluation include renovations and construction defects
cases. In such cases, the Evaluator would be expected to
render an opinion on whether the subject of the complaint is
in fact a defect and on the cause of the subject of the
complaint (e.g. wear and tear, design defect, poor
workmanship or non-compliance with material specifications).
When do you go for Neutral Evaluation?
Neutral Evaluation is particularly useful where the parties
have reached a deadlock in their negotiations and would like
an objective assessment of the situation before proceeding
further. Neutral Evaluation will provide a more structured
framework for the parties to assess their legal rights and
liabilities and thereby assist them in their further
negotiations and other dispute resolution efforts. The
Evaluator, in rendering a non-binding opinion, acts as an
impartial expert on the merits of the dispute.
What will be included in the Evaluator's opinion and how can
the opinion be used?
The Evaluator will provide the parties with an objective and
confidential assessment of their legal positions and discuss
the likely outcome of the dispute. In some cases, he may
also suggest an apportionment of liability or quantum.
The Evaluator's opinion can assist the parties in resolving
their dispute amicably as it can serve as a platform for
further negotiations between the parties and form the basis
of a settlement between them. If the parties so choose, they
can also agree beforehand to be bound by the Evaluator's
opinion.
Who are the SMC Evaluators?
The SMC has a Panel of Evaluators who are well-respected
experts in their respective fields. For instance, Evaluators
from the construction industry are experienced professionals
of high standing who have been specially nominated by
various industry bodies and then selected to sit on the
SMC's Panel of Evaluators.
How are Evaluators appointed?
The parties will attempt to choose up to five mutually
acceptable Evaluators and the SMC will try to appoint an
Evaluator in accordance with the parties' preferences. If
the parties are unable to agree on any mutually acceptable
Evaluators, each party will provide the SMC with a list of
five Evaluators who are acceptable to that party. The SMC
will then appoint an appropriate Evaluator, having regard to
the nature of the dispute. The parties may, if they have
valid reasons, object to the appointment of a particular
Evaluator. When this happens, the SMC will appoint another
person.
What is the difference between Neutral Evaluation and
Mediation?
In Mediation, the Mediator acts as a manager of the process
of negotiations between the disputing parties, regulating
the process and steering the direction of the discussion
with the aim of finding a mutually acceptable solution.
Generally, the Mediator does not assess the merits of the
dispute or provide the parties with his opinion as to what
their legal rights are. Whether there is any settlement or
not depends on whether the parties mutually agree to accept
the terms of the settlement.
In Neutral Evaluation, the Evaluator provides an objective
assessment of the merits of the case. This means that the
Evaluator will give an opinion as to the cause of the
problem and who is at fault.
Will a Neutral Evaluation session be conducted?
The Evaluator will express his opinion on the basis of the
Summaries and documents submitted to him by the parties. In
Neutral Evaluation, there will be no hearings or meetings
unless the Evaluator decides that a meeting is necessary.
Should there be a meeting, the disputants themselves should
attend. In the case of a company, a representative who is
well acquainted with the subject matter of the dispute
should attend. Lawyers are also encouraged to attend as they
can help their clients with advice on the law.
How to refer a case for Neutral Evaluation?
The parties are encouraged to make an online submission of
the electronic application form for Neutral Evaluation at
the SMC's DisputeManager.com website . The parties may also
write to the SMC directly to request for Neutral Evaluation
using the Application for
Neutral Evaluation Form. The SMC
will subsequently advise if the case is suitable for Neutral
Evaluation and what the fees to be paid are.
If a request for Neutral Evaluation is made by only one
party, the SMC will contact the other party or parties to
invite them to come for Neutral Evaluation. Neutral
Evaluation will only proceed with the agreement of all
parties.
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