Sabah Law Society to mediate contract disputes arising from pandemic

KOTA KINABALU – Contractual disputes arising from the pandemic can now be referred to the Sabah Law Society (SLS) for mediation.

President Roger Chin, in a statement today, said the body has been appointed by Putrajaya to provide such services to parties involved in contractual disputes in the state.

Trained and accredited mediators will assist the public via the newly formed Covid-19 Mediation Centre, he said.

“SLS’ appointment is in line with the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 that came into force on October 23.

“The mediation service is open to all, with the disputed sum limited to RM300,000, whereby disputing parties can attempt to resolve matters without involving a court hearing.”

For those who qualify, especially the B40 and M40 groups, the mediation will be subsidised by the government, he said.

The scope of mediation covers:

– Construction contracts or construction consulting contracts, and any other contracts relating to the supply of materials, equipment or construction workers;

– Performance bonds or their equivalent issued pursuant to a construction contract or supply contract; professional services contract; or, lease or rental of non-residential immovable property;

– Event contracts for the provision of any venue, accommodation, facilities, transportation, entertainment, catering or other goods or services, including any business meetings, incentive trips, conferences, exhibitions, sales events, concerts, shows, weddings, parties or other social gatherings or sporting events, for participants, attendees, guests, patrons or spectators for the assembly or event;

– Contracts by a tourism enterprise; and,

– Contracts relating to religious pilgrimages.

Meanwhile, the establishment of the first international arbitration centre in Borneo, with the support of the judiciary and members of the Bar, is on track, albeit slowed down by the virus crisis.

Chin said SLS hopes the mediation services will be assigned to and provided by this arbitration centre in the near future. – The Vibes, November 26, 2020