INTERNATIONAL MAIL
May 18, 2004
Mr. Johnson Smith, CEO
Eagle Trade, Inc.
620 - 5th Avenue
New York, N.Y. 10002
The United States of America
Re: Eagle Trade, Inc. et al v. Duck Trading Co., Ltd.
Dear Mr. Smith:
As a preferred and commonly used method to solve business disputes in China, I
would propose that you consider mediating your dispute with Duck Trading Co., Ltd.
Mediation can save your time and money, and we can always proceed to judicial
proceedings if the mediation turns out unsuccessful.
Mediation as practiced in China is a structured process that is guided by a trained
professional. A mediator does not resolve the allegations or impose a decision on
the parties. Instead, the mediator helps the parties to agree on a mutually
acceptable resolution. Therefore, mediation is a voluntary form of dispute
resolution. The goals of mediation are to resolve issues and rebuild work
relationships so that the parties can move forward. Mediation gives the parties the
opportunity to discuss the issues, clear up misunderstandings, solve underlying
problems and develop a resolution.
The mediation process is strictly confidential, and it will not be used to establish
evidence, facts or procedures. In a sense, mediation does not determine guilt,
blame or fault in a matter. However, mediation does produce legally binding
settlement agreements. Violations of settlement agreement will be reported. In
this sense, mediation does not limit or restrict your right to use formal judicial
processes if the mediation is unsuccessful, as long as time frames are observed.
As aforementioned, mediation is an efficient process that saves time and money.
Successful mediation avoids a time consuming investigation and achieves a prompt
resolution of the allegations and claims. The majority of mediations are completed
in one session, which usually lasts for one to five hours. Some of the other
advantages of mediation in China include but not limited to:
1. Mediation is fair. Mediators are neutral third parties who have no interest
in the
outcome. Their role is to help the parties resolve the issues.88
2. Mediation is a confidential process. The sessions are not tape-recorded or
transcribed. Notes taken during the mediation are destroyed and will not
be admissible in court.
3. Settlement agreements reached during mediation do not constitute an
admission of guilt.
4. Mediation avoids lengthy and unnecessary litigation. Research shows that
the majority of mediations produce outcomes satisfactory to all involved
parties.
Although mediation is not a mandatory pre-trial procedure, please consider the above
information carefully and come back to me before June 1, 2004 to advise how you
would like to proceed with the matter.
Sincerely,
Zhang, Wang & Lee, L.L.P.
Deguang Zhang, Esq.
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