Kleros Mediation Bridge Workshop Deck
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"The Kleros Mediation Bridge: Blending Traditional Mediation & Blockchain Arbitration" The slide deck of my presentation with Robert Dean at the ArbTech community and our proposal to use Kleros as a mediation support tool.
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Kleros Mediation Bridge Workshop Deck
- 1. FEDERICO AST President, Kleros federico@kleros.io The Kleros Mediation Bridge ROBERT DEAN Driver Trett robert.dean@drivertrett.com
- 2. What Is Med-Arb? Mediation-Arbitration is a hybrid dispute resolution process that combines the elements of both mediation and arbitration.
- 3. A Hybrid Process At its core, Med-Arb is designed to capitalise on the strengths of both mediation and arbitration.
- 4. How It Works Mediation is a facilitated negotiation process wherein a neutral third party, the mediator, assists the disputing parties in reaching a voluntary settlement.
- 5. How It Works The mediator does not have the authority to impose a decision on the parties. Instead, the mediator facilitates discussions, helps clarify issues, and guides parties toward mutual agreement.
- 6. How It Works The goal of mediation is to help parties find common ground and arrive at a resolution that is acceptable to both.
- 8. Arbitration Arbitration is a more formal process where a neutral third party, the arbitrator, hears the arguments and evidence presented by both sides and then makes a binding decision.
- 9. Arbitration Unlike mediation, the decision in arbitration is typically final and enforceable, similar to a court judgment.
- 10. Why Med-Arb?
- 11. Why Med-Arb? The combination of mediation and arbitration in a single process offers parties a streamlined approach to dispute resolution.
- 12. Why Med-Arb? Med-Arb provides parties with the flexibility and control of mediation, but with the assurance that if they cannot reach a mutual agreement, a definitive resolution will be provided through arbitration.
- 13. Why Med-Arb? This hybrid approach can be especially valuable when parties seek a timely resolution and want to avoid the potential time and expense of litigation.
- 17. How can we have the advantages of the med-arb processes whilst overcoming its challenges?
- 20. First, a bit about Kleros…
- 21. The Contract
- 24. Arbitrator
- 25. Jurors
- 27. Jury Selection
- 29. PNK ERC 20 token that users need to stake to be drawn as jurors.
- 37. How the Kleros Mediation Bridge Works
- 38. Breaking Down the Issues Discovering Core Interests Developing Outcomes Submission to Kleros Kleros Decision Enforcement Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Dispute Kleros Mediation Bridge Process
- 39. Step 1 Parties agree to mediation using Kleros Mediation Bridge.
- 41. Step 2 A mediator works with each party to identify the core issues, breaking a complex dispute into a set of simpler claims over specific issues.
- 42. Complex Dispute Issue 1 Issue 2 Issue 3
- 43. Step 3 The mediator helps each party formulate a demand and a desired outcome for each issue. Also ensure that all required documentation, evidence and arguments are well organized.
- 44. 4.5M 0.8M 1.5M 0.2M 1M 0.1M 2M 0.5M Issue 1 Issue 2 Issue 3 TOTAL Alice Position Bob Position
- 45. Step 4 Issues where an agreement is met are settled. Issues where an agreement is not met are sent to Kleros for neutral evaluation.
- 46. Is an agreement reached in issue 1? End Send to Kleros Yes No
- 47. Is an agreement reached in issue 2? End Send to Kleros Yes No
- 48. Is an agreement reached in issue 3? End Send to Kleros Yes No
- 49. Step 5 Jurors review the issue and vote on the outcome.
- 50. Step 6 The mediator assists parties in creating a legally binding Master Settlement Agreement (MSA), a legal contract formalizing the settlement and outlining terms agreed by the parties.
- 51. Breaking Down the Issues Discovering Core Interests Developing Outcomes Submission to Kleros Kleros Decision Enforcement No Yes Agreement? Step 1 Step 2 Step 3 Step 4 Step 5 Step 6 Dispute
- 54. Space Tourism A French company building a rocketship with the vision of selling luxury cruises to space.
- 55. Big Pharma A Swiss multinational pharmaceutical company sponsoring the rocketship.
- 56. A PR Incident Big Pharma’s drug Reloxitol creates a PR incident that negatively affects the project.
- 60. Complex Dispute Reimbursement Rebranding Repurposing
- 61. Issues Issue 1: Should BP reimburse passengers? Issue 2: Should the project be rebranded? Issue 3: Should the project continue with the original vision or be repurposed into a research rocket?
- 62. Parties agreed that Big Pharma would refund passengers. Issue 1: Should BP Reimburse Passengers?
- 63. Parties agreed that Big Pharma would stay involved in the project under a rebranding. Issue 2: Should the project be rebranded?
- 64. No agreement was reached on the proposal of repurposing the rocket vs seeking additional funding remains disputed. Issue 3: Should the Project Keep the Original Touristic Vision or Be Repurposed?
- 65. Should the rocket project be repurposed as a space lab (Option A) or should additional funding be sought to maintain the original vision of space travel (Option B)? A Decision for Kleros
- 66. What is the solution that people will consider “reasonable”?
- 67. The project should be repurposed into a space lab. Option A
- 69. How Kleros can enhance Med-Arb processes
- 70. Reduces Potential for Bias One of the most frequently voiced concerns with traditional Med-Arb processes when the same neutral individual serves as both mediator and arbitrator, is the potential for bias. There's a risk that confidential information shared during mediation could influence the arbitrator's final decision, even if unconsciously.
- 71. Reduces Potential for Bias As a result, parties might be less candid during mediation, fearing that the mediator-arbitrator could form opinions that might later affect the arbitration outcome.
- 72. Reduces Potential for Bias Kleros operates on a principle of randomised juror selection from a vast and diverse pool of potential jurors. Each arbitration case is assigned to jurors who have no prior knowledge or involvement in the mediation phase of the dispute. This ensures that they come into the arbitration process with a fresh perspective.
- 73. Reduces Potential for Bias By introducing new, decentralised jurors for the arbitration phase, Kleros effectively eliminates any preconceived notions or biases that might arise from information shared during mediation. The jurors only consider the evidence and arguments presented during arbitration.
- 74. Reduces Potential for Bias Knowing that the arbitration phase will be conducted by a fresh set of neutral jurors can enhance trust in the Med-Arb process. Parties can communicate more openly during mediation, secure in the knowledge that this will not influence the potential arbitration phase.
- 75. Reduces Potential for Bias Kleros' integration into Med-Arb allows parties to fully embrace the collaborative nature of mediation, while also being assured of a truly impartial and unbiased arbitration, should it be necessary.
- 76. Simplification as a Catalyst for Resolution Kleros necessitates that disputes, no matter how intricate, be distilled into binary or ranked-choice scenarios. This process compels parties to simplify their arguments, clarify their positions, and zero in on the primary points of contention.
- 77. Simplification as a Catalyst for Resolution As parties work to formulate their disputes into more straightforward scenarios, they often find that many peripheral issues fall away, revealing the crux of the dispute. This clarity can be invaluable during mediation.
- 78. Simplification as a Catalyst for Resolution As discussions become more centered on the core issues, there's an increased likelihood of finding common ground. The very act of simplifying disputes for Kleros can, in many cases, bring parties closer to a resolution during the mediation phase itself.
- 79. Other Advantages of Kleros for Med-Arb The Kleros system can deliver fast verdicts.
- 80. Other Advantages of Kleros for Med-Arb More cost-effective than traditional arbitration processes.
- 81. Other Advantages of Kleros for Med-Arb All decisions are recorded on the blockchain, ensuring transparency and accountability.
- 82. Other Advantages of Kleros for Med-Arb Case data can be anonymised / redacted where required.
- 83. Best Practices with Kleros Med-Arb Ensure parties understand the decentralised nature of Kleros.
- 84. Best Practices with Kleros Med-Arb Encourage parties to familiarise themselves with Kleros' dispute resolution process.
- 85. Best Practices with Kleros Med-Arb Include a med-arb clause in the contract, adapting the clause to include Kleros as an Arbitrator.
- 87. FEDERICO AST President, Kleros federico@kleros.io The Kleros Mediation Bridge ROBERT DEAN Driver Trett robert.dean@drivertrett.com