Alternative Dispute Resolution In Second Life®

Slide 1: Alternative Dispute Resolution in Second Life

Slide 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

Slide 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

Slide 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

Slide 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)

Slide 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

Slide 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

Slide 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

Slide 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

Slide 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)

Slide 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)