Alternative dispute resolution (ADR) provides methods for settling disputes outside of litigation. In Second Life, ADR can help resolve commerce and business disputes in a neutral way. The eJustice Centre was created to offer ADR services through mediation and arbitration. Trained professionals conduct mediation to help parties find compromise. If mediation fails, arbitration judges make a binding decision. Their goal is to establish trust and neutrality in resolving conflicts for Second Life residents.

1. Alternative Dispute
Resolution
in Second Life

2. What is it?
• A way to settle disputes processes and techniques
that fall outside of the government judicial process
• It usually includes negotiation, moderation, and
arbitration
• "Alternative" dispute resolution is usually
considered to be alternative to litigation
• ADR can increasingly be conducted online or by
using technology, and it may have or not a
government’s support

3. What is it not?
• It’s not enforcement (both parties have to
agree)
• It’s not tied to a single country’s legal
system or any arbitrary system
• It’s best used to settle commerce and
business disputes

4. How does it work?
• Usually both parties try first to negotiate: they settle
their differences without any third parties
• If negotiation fails, an independent mediator
participates with both parties in a mediation: it will
suggest a possible resolution, but not force anyone to
accept it
• If mediation fails, both parties can agree on arbitration
instead: an independent party (usually formally trained
as a judge) will decide the outcome, based on
audiences with both parties

5. But how are resolutions enforced?
• There is no real enforcement. Both parties, at
the beginning of the process, deposit an
amount equivalent to the issue under
discussion as an escrow with the ADR office.
• After a decision has been reached, the ‘winner’
will get the total amount (minus fees).
• In real life, both parties often forfeit the right
to litigate further (thus the purpose of using
ADR)

6. Why ADR in Second Life?
• Second Life is a shared, collaborative environment,
where users have complete freedom about the
choices they make
• While Linden Lab imposes some “social
conducts” (the Community Rules), commerce is
completely unregulated
• Abuse Reports to Linden Lab regulate behaviour,
but rarely have a successful result, and the
proceedings are not transparent

7. Why another ADR office?
ADR systems have been implemented among
residents, but...
• The moderators are not impartial
• It takes volunteering time
• Moderators are not trained professionals and
cannot present credentials
• They have no easy way to reach residents requiring
mediation and arbitration

8. The Solution?
• Providing ADR requires absolute neutrality of
the mediators and trust of residents in that
neutrality, as well as in the ability of solving
conflicts
• A neutral system requires a neutral entity to
run it
• It cannot depend on “whims” and volunteer
time; it requires a professional organisation and
full-time commitment

9. The eJustice Centre
• Sponsored by the Portuguese Ministry of Justice
• Staffed by real life mediators/arbitrators and
students of the New University of Lisbon’s Law
School; built by the University of Aveiro
• Modelled after real life Arbitration Centres
• Uses UNCITRAL Model Law as adapted for
specific use within Second Life (Portuguese Law
is an option for Portuguese residents)
• Residents can opt for mediation first and
arbitration later, or only arbitration

10. Submitting a Request for Mediation
1. SL Resident with a request for mediation goes to the eJustice Centre
and fills a form on a notecard including the name of the other party
and a description of the issue
2. The notecard is dropped on a device, and a process number is
generated (further data can be added later to the process, via the Web
or SL; witnesses can be named to be notified)
3. The other party is notified. If they agree to mediation, a meeting
between both parties is arranged
4. Both parties deposit an escrow with the eJustice Centre
5. A mediator will be present in the meeting, and will give tips and
suggestions on how to find a compromise. The suggestions are not
binding, the decision will come from both parties together
6. If the mediation is successful, the winner gets the money held in
escrow (minus fees; currently zero)

11. Arbitration after Moderation
1. If the moderation fails (ie. the parties are not able
to agree on a final decision), the next step is
arbitration
2. A new meeting is set up and this time the two
parties will meet with a panel of arbitration judges
3. The claims are reviewed, and the arbitration judges
will make a decision on the issue
4. The winner gets all the money held in escrow
(minus fees)