Blind bidding is a simple process suitable at any stage of a dispute, though it is often used early, before or instead of mediation. It is completed in a day or half-day, remotely by phone or email, with a mediator engaged at a fixed fee.
A mediator, appointed by IPOS, oversees the process. The parties agree in advance to make three bids during the day, along with any conditions such as inclusion of legal costs. Each round, both parties submit their bids to the mediator, who confirms whether there is a match, an overlap, or a gap. A match settles the matter on those terms. If there is an overlap, settlement is at the midpoint between the bids. If there is a gap, the process continues for up to three rounds.
If no match or overlap is found after three rounds, the mediator ends the process. All bids remain confidential. The mediator may, if appropriate, suggest revealing final bids if the gap is small.
Any settlement is subject to contract.
Blind bidding offers a cost-effective way to try and resolve disputes, with confidentiality maintained unless agreement is reached. If settlement is not achieved, other dispute resolution routes, like mediation, arbitration or litigation, remain open.
Parties can also agree extra terms, for example, disclosing final offers if they are within a certain amount, or splitting the difference as a basis for further negotiation.
No papers are needed by the mediator apart from joint instructions on how the offers will work and any agreed directions.
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