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Blind Bidding in ODR

Blind Bidding in ODR

Why can blind bidding be a helpful dispute resolution technique?



Full Transcript

It is normally used only when there is a monetary issue. The typical example of where they have been very successful is in the context of complaints with insurance companies. Say where it is clear that you have a car accident. Someone hits you at the back of your car. We know who is paying. He’s paying, the person who hits the back of your car. What is not clear sometimes is the amount that the other party will be paying. That’s where the disputes often lie, on one single monetary issue.


Sometimes they end up in litigation for months, if not years, to determine this single amount. So the blind bidding system basically helps parties to relieve the bottom line offers. How much they are willing to pay, how little they are willing to accept. Only if these offers overlap, then the middle range, the middle point, will be considered to be a settlement.


If these offers don’t meet, these confidential offers, parties could still explore other ways of resolving the dispute through mediation. If that fails, litigation, arbitration may be the last option, where a third neutral party will impose the settlement.

About the mediator

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Pablo is a Senior Lecturer and a non-practising Spanish attorney. He conducts research in the field of dispute resolution, civil procedure and consumer law. He was invited to be a keynote speaker in two international conferences, and he has been invited as a speaker at many other conferences in 15 different countries. He was invited to participate in expert meetings by various organisations, including the UN Commission for International Trade Law... View Mediator