Guide toJCAA Mediation

1.

General matters ................................................................................................... 1(1)

Type of disputes to be handled (Article 1 of the Mediation Rules) ............................. 1(2)

Prior consultation and explanation of mediation procedures ..................................... 1

2.

Commencement of mediation procedures ........................................................ 1(1)

Request for mediation (Articles 12 and 13 of the Mediation Rules) ............................ 2(2)

Notice of Request for mediation (Articles 12.5 and 13.4 of the Mediation Rules) ....... 3(3)

Consent of the other party to mediation (Article 13.5 of the Mediation Rules) .......... 3(4)The other party's written response (Article 14 of the Mediation Rules)...................... 4

3.

Appointment of mediators (Article 15-18 of the Mediation Rules) ............. 4(1)Number of mediators .................................................................................................. 4(2)When the parties have agreed on the method of appointment of mediators .............. 4(3)When the parties have not agreed on the method of appointment of mediatorS ....... 5(4)If the parties do not notify the JCAA of the appointment of mediators within thetime limit ................................................................................................................................ 5(5)challenge of mediator .................................................................................................. 6

4.

Mediation procedures (Article 21-22 of the Mediation Rules) ..................... 6

5.

Private, confidentiality and handling of materials submitted during

mediation (Articles 23 and 24 of the Mediation Rules) ........................................... 7
6.

Termination of the mediation procedure (Articles 25, 26 and 28 of theMediation Rules) ........................................................................................................... 7
7.

Mediation costs to be borne by the parties to the dispute (Articles 30-35of the Mediation Rules) ................................................................................................ 91.

Filing fee (Article 33 of the Mediation Rules) .............................................................. 92.

Deposit (Article 35 of the Mediation Rules) ................................................................ 93.

Mediator's remuneration (Article 30 of the Mediation Rules)................................... 104.

Mediator's expenses (Article 32 of the Mediation Rules) .......................................... 10

5.

Administrative fees and other reasonable expenses (Article 34 of the MediationRules) 11
6.

Settlement of expenses paid to the JCAA (Article 35 of the Mediation Rules) .......... 11

7.

Certification of the settlement agreement ..................................................... 11This guide illustrates a summary of the mediation procedure under the Commercial
Mediation Rules of the JCAA (the "Mediation Rules").

1. GENERAL MATTERS(1) TYPE OF DISPUTES TO BE HANDLED (ARTICLE 1 OF THE
MEDIATION RULES)The JCAA mediates "commercial disputes". A typical example is a business dispute
between two companies. If you are unsure whether a dispute is a "commercial dispute"or not, please contact the JCAA.

(2) PRIOR CONSULTATION AND EXPLANATION OF MEDIATIONPROCEDURES
If you are considering using the JCAA's mediation process for your commercial dispute,please contact the JCAA and we will explain the mediation process.
The JCAA’s contact is as follows:<Arbitration and Mediation Department >E-mail: mediation@jcaa.or.jp
Tel: +81-3-5280-5161
Hirose Building 3F, 3-17 Kanda Nishiki-cho, Chiyoda-ku, Tokyo 101-0054
Business hours: Monday - Friday 9:30 - 17:00
Closed: Saturdays, Sundays, national holidays and December 29th - January 3rd

2. COMMENCEMENT OF MEDIATION PROCEDURES

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(1) REQUEST FOR MEDIATION (ARTICLES 12 AND 13 OF THE
MEDIATION RULES)
When applying for mediation to the JCAA, the applicant will submit to the JCAA atthe address stated in I (2) a written request for mediation stating the followings:⚫

the Parties’ full names (if a Party is a legal entity or other association, the corporatename and the name of the Party’s representative), street address and other contact
details (including telephone number and e-mail address)⚫

the full name, street address and other contact details (including telephone number
and the e-mail address) of applicant’s counsel, if the applicant is represented bycounsel⚫

a summary of the dispute (including the claim(s) if it is identifiable)

In addition to the matters listed above, it is also recommended that the parties’agreement or the applicant’s opinion on the following matters, if any, be stated in theapplication for mediation:⚫

the mediator’s name or the procedures for appointment of the mediator (including
the number of the mediators)⚫

the process for conducting the mediation proceedings (including whether theMediator shall suggest to all the parties its proposals for settlement⚫

the time limit for concluding the mediation⚫

the language(s) of the mediation⚫

possibility of enforcement based on the settlement agreement⚫

the calculation method for the mediator’s remuneration2

At the time of filing an application for mediation, the applicant must provide the JCAA
with a written copy of the mediation agreement, if one already exists.
When a counsel represents the applicant during mediation proceedings, counsel must
submit a power of attorney to the JCAA along with the application for mediation.
Upon receipt of an application for mediation, the JCAA will request the applicant to pay
the filing fee of JPY 50,000 (plus consumption tax if the applicant is located in Japan) toJCAA's bank account.

(2) NOTICE OF REQUEST FOR MEDIATION (ARTICLES 12.5 AND 13.4 OF
THE MEDIATION RULES)The JCAA will notify the applicant and the other party of the application for mediation
after confirming that the application for mediation has been made in compliance withthe Mediation Rules. A copy of the application for mediation will be attached to such
notice to the other party.
If the parties already have a mediation agreement, the mediation process will commenceon the date the JCAA issues the notice of application for mediation.

(3) CONSENT OF THE OTHER PARTY TO MEDIATION (ARTICLE 13.5 OF
THE MEDIATION RULES)
If there is no mediation agreement between the parties, the JCAA will, at the time ofgiving notice of the application for mediation, ask the other party to respond within twoweeks of receipt of the notice as to whether or not to participate in the mediation process
under the JCAA's Mediation Rules.
The other party, if participating in the mediation process under the JCAA Mediation
Rules, will submit to the JCAA a written consent to mediation within the above timeframe. Upon receipt by the JCAA of the written consent, the mediation process will begin.
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If the other party gives consent, the JCAA will notify the applicant of such consent.

(4) THE OTHER PARTY'S WRITTEN RESPONSE (ARTICLE 14 OF THE
MEDIATION RULES)
The other party will submit to the JCAA a written response within two weeks from thedate of commencement of the mediation proceedings, stating its views on theapplication for mediation.
If a counsel represents the other party during mediation proceedings, counsel must
submit a power of attorney to the JCAA.

3. APPOINTMENT OF MEDIATORS (ARTICLE 15-18 OF THE
MEDIATION RULES)(1) NUMBER OF MEDIATORSMediation is conducted by a single mediator unless the parties have agreed to mediatewith more than one mediator. In such case, the parties must notify JCAA of the agreed
number of mediators within two weeks of the date of commencement of the mediation
proceedings.

(2) WHEN THE PARTIES HAVE AGREED ON THE METHOD OFAPPOINTMENT OF MEDIATORSThe parties will appoint one or more mediators in accordance with their agreement.
The parties appointing a mediator need to receive from the mediator a written
acceptance of appointment as mediator and declaration of impartiality andindependence. The format can be downloaded from the JCAA’s Website( https://www.jcaa.or.jp/en/mediation/flow.html).
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The parties will submit to the JCAA a notice of appointment of mediator stating thename, address, other contact details (telephone number and email address), andoccupation of the mediator, together with the above written acceptance and declarationof impartiality and independence.
If the JCAA determines that a mediator appointed by the parties is clearly unsuitable tomediate a settlement, the JCAA will ask that parties to appoint another mediator within
the time frame specified by the JCAA and notify the JCAA of the appointment.

(3) WHEN THE PARTIES HAVE NOT AGREED ON THE METHOD OFAPPOINTMENT OF MEDIATORSThe parties will, within four weeks of the commencement of the mediation process,appoint one or more mediators and notify JCAA of the appointment in the manner
described below:⚫

Where the number of mediators is one, the parties will agree on one mediator.

⚫

Where the number of mediators is two, each party will appoint one mediator.

⚫

When the number of mediators is three, the applicant and the other party
will appoint one mediator each, and the two selected mediators will appointa third mediator.

(4) IF THE PARTIES DO NOT NOTIFY THE JCAA OF THE APPOINTMENTOF MEDIATORS WITHIN THE TIME LIMITThe JCAA will send each party a list of mediator candidates that it considers areappropriate for the case.

5Each party shall return the list of mediator candidates to JCAA within one week ofreceipt of the list, noting any candidates it objects to and ranking any remaining
candidates in the order in which it wishes to have them serve as mediator.
Upon receipt of the list of mediator candidates returned by the parties, JCAA will
appoint an arbitrator taking into account their ranking and notify the parties of theappointment.

(5) CHALLENGE OF MEDIATORThe parties may challenge the appointed mediator if they have reasonable grounds todoubt the impartiality or independence of the mediator (Article 18 of the Mediation
Rules). Upon receipt of the application for challenging the mediator, JCAA will decideon this application, if necessary, after consulting with the Proceedings Committee.

4. MEDIATION PROCEDURES (ARTICLE 21-22 OF THE MEDIATIONRULES)The mediator will discuss with the parties how to proceed with the mediation process,including:⚫

language used in the mediation procedure⚫

schedule and method of submission of documents and supporting materials to themediator⚫

date and place of mediation session⚫

whether or not a proposal for settlement is suggested by the mediator and, if so, when
it is to be proposed⚫

duration of the mediation procedure

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The mediator may confer individually with one of the parties if necessary. In that case,the mediator is not allowed to disclose the information to the other parties unless thedisclosing party has consented to this disclosure.
If the mediator is not an attorney and wishes to obtain expert advice on the interpretation
and application of laws and regulations, the mediator may obtain advice from anattorney as nominated by the JCAA. Mediation proceedings will stay if the mediator isadvised by the attorney and will be resumed after the advice has been obtained.
The mediator may proceed with the mediation in such manner as he or she sees fit,hearing the parties' views, as long as it is not contrary to the Mediation Rules.

5. PRIVATE, CONFIDENTIALITY AND HANDLING OF MATERIALSSUBMITTED DURING MEDIATION (ARTICLES 23 AND 24 OF THE
MEDIATION RULES)
The mediation process is private and closed to the public. The mediator, the parties, theircounsels, and assistants, JCAA officers and employees, and any other person involvedin the mediation process may not divulge information about the mediation process toothers, unless otherwise agreed to by the parties.
In principle, neither party may give evidence in court or arbitration proceedings of,among others, any allegations made, or views expressed by the other party in themediation proceedings and any proposals made by the mediator.

6. TERMINATION OF THE MEDIATION PROCEDURE (ARTICLES 25,26 AND 28 OF THE MEDIATION RULES)
The mediation procedure must be completed within three months of the appointmentof the mediator. If the parties agree otherwise or the JCAA deems it necessary, the term
will be extended.

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The mediation procedure will be terminated for the following reasons:⚫

a copy of the settlement agreement in respect of all the disputes subject tomediation is submitted to the JCAA.

⚫

the other party fails to submit the reply to the JCAA within the time limit underArticle 14.1. However, where there is more than one respondent, the mediation
proceedings shall be terminated only with regard to the respondent failing tosubmit the reply.

⚫

all the mediators are not appointed or confirmed by the JCAA due to a party’s
objection under Article 17.5 within three months from the date when the JCAA
initially sends the parties the list of candidates for mediators.

⚫

the time limit for concluding the mediation proceedings under Article 25 hasexpired.

⚫

the mediator or the JCAA receives a notice of withdrawal by any party. However,where the number of the parties is three or more, the mediation proceedings shallbe terminated only with regard to the withdrawing party.

⚫

when two weeks have passed from the day following the date on which the partiesor the JCAA receives the decision from the mediator that there is no likelihood ofsettlement on the grounds that, among others, any party appears unwilling toreach settlement or the difference in the parties’ positions does not close. However,
the mediation proceedings shall not be terminated if all the parties request themediator to continue the mediation proceedings within this time limit.

⚫

the JCAA notifies the parties in writing of its decision to terminate the mediation
proceedings under Article 35.2 on the ground that a party has failed to pay thedeposit to the JCAA.

If the mediation proceedings are terminated, the JCAA will notify the parties and themediator thereof.

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If the parties have reached a settlement, they will submit one original of the settlementagreement to the JCAA.
In order to evidence that the settlement agreement has resulted from mediationadministered by the JCAA, the mediator will sign the settlement agreement in any of thefollowing cases:-the parties have agreed to enforcement based on the settlement agreement; or-all parties so request

7. MEDIATION COSTS TO BE BORNE BY THE PARTIES TO THEDISPUTE (ARTICLES 30-35 OF THE MEDIATION RULES)
1.

FILING FEE (ARTICLE 33 OF THE MEDIATION RULES)At the time of filing an application for mediation, the applicant must transfer the fee of
JPY50,000 (plus the consumption tax if the applicant is located in Japan) to the bankaccount designated by the JCAA.
If the applicant does not pay the filing fee, the application for mediation is deemed notto have been filed and the application for mediation will be returned to the applicant
with a note to that effect.
The JCAA will refund the filing fee to the applicant if (i) there has been no priormediation agreement and (ii) the other party notifies the JCAA of its non-consent to themediation process or fails to notify the JCAA of its consent to the mediation process,within two weeks of its receipt of notice of the application for mediation. The JCAA does
not refund the filing fee after the mediation proceeding have been initiated (see Article2(7)) of the Rules)
2.

DEPOSIT (ARTICLE 35 OF THE MEDIATION RULES)The JCAA requests the parties to pay deposit to cover the mediator’s fee and expenses,
the JCAA administrative fee and other reasonable expenses.
9-Initial deposit: The JCAA requests the parties to pay the deposit when the mediation
proceedings start. The JCAA decides the amount of initial deposit taking

intoaccount the number of arbitrators, the complexity of the disputes and other relevant
circumstances.
-Additional deposit: the JCAA requests the parties to pay an additional deposit of theJCAA finds the existing amount of deposit would be insufficient based on the hours
the mediator has spent and the expected hours to be spent.

If one of the parties fail to pay a deposit, the mediation proceedings will stay or terminate
unless the other party pays on behalf of the non-payment party.

3.

MEDIATOR'S REMUNERATION (ARTICLE 30 OF THE MEDIATIONRULES)

The mediator's remuneration is JPY50,000 per hour (not including consumption tax)
multiplied by a reasonable amount of time spent in the mediation process unless theparties agree otherwise. The parties may agree to adopt a fixed amount of mediator's
remuneration or other methods of calculation.
The mediator’s remuneration will be paid from the deposit made by the parties to theJCAA.

4.

MEDIATOR'S EXPENSES (ARTICLE 32 OF THE MEDIATION RULES)

The parties will bear the mediator’s actual costs of the followings and theiraccommodation:⚫

transportation expenses (business-class airfares and equivalent class fares for othermodes of transportation)10

⚫

cost of post, courier, telephone calls, copies or any other expenses that the JCAA
finds reasonable taking into consideration the nature of the case.

⚫

if the mediator is required to use overnight accommodation, the mediator will bepaid JPY 60,000 per night as the flat rate of per diem allowance which covers hotel
charges, meals and other personal living expenses.

Mediator’s fees will be paid from the deposit made by the parties to the JCAA.

5.

ADMINISTRATIVE FEES AND OTHER REASONABLE EXPENSES(ARTICLE 34 OF THE MEDIATION RULES)

The parties will be responsible for 10% of the total amount of the mediator's
remuneration as the JCAA administrative fee.
If the JCAA arrange for interpreters, venues, etc., the parties shall be responsible for any
expenses incurred.
The JCAA administrative fees and other reasonable expenses will be paid from thedeposit made by the parties to the JCAA.

6.

SETTLEMENT OF EXPENSES PAID TO THE JCAA (ARTICLE 35 OF
THE MEDIATION RULES)

If there is any amount remaining after subtracting (2) through (4) above from the deposit
paid by the parties to JCAA, it will be refunded to the parties after the termination of themediation proceedings.

7.

CERTIFICATION OF THE SETTLEMENT AGREEMENT

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At the request of either party to enforce the mediation agreement, the JCAA will provide
an attestation confirming the content of the settlement agreement and that the settlementagreement has resulted from mediation administered by the JCAA.
At the request of either party, the JCAA will share a copy of the documents exchanged
during the mediation proceedings except for any ex-parte communication between themediator and the other party. The duration of preserving such documents is a reasonable
period of time exceeding 10 years from the end of the mediation process.

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