Blind-bidding

Blind Bidding is a simple system which can really work when the only real issue is the payment of money and it is clear which party will be making the payment.

It can be done at any time and is usually done within just a couple of hours and for a fixed price. The process operates remotely, by telephone or email.

The parties agree to make three bids over the course of the slot and the basis on which they are to be made, eg to include legal costs or not. For each round each party submits a bid to the neutral who reports whether there is a match, an overlap or a gap. In the unlikely event of a match in a bidding round there is a settlement. In the event of an overlap in a single round, settlement is effected at the midpoint between the bids. If there is a gap, the parties are invited to make their next bid until completion of three rounds.

If there is no match or overlap after three rounds, I, as the neutral, will declare an end to the process and all information about the level of the bids will remain confidential. However the neutral may suggest to the parties that there may be some advantage to them in revealing their final bids (if, for example, the gap seems a narrow one).

This settlement process cannot be described as a mediation as the parties do not meet, there is no exploration of the issues and the activity is limited to up to 3 blind bids made by each party. But it is quick and cheap. The international law firm Dentons has published a helpful blog article on it here.