Dispute resolution through commercial mediation consultancy

Dispute resolution through commercial mediation is one of the dispute resolution methods that parties should consider using. However, currently, very few businesses are aware of this dispute resolution method, and the level of trust is still low. The following article by Long Phan Consulting Company will help our clients have a comprehensive view of commercial mediation as well as the commercial mediation services we provide.

The latest Commercial Mediation Process

According to Article 14 of Decree 22/2017/ND-CP, The commercial mediation is conducted according to the following process:

• Parties may agree on the order and procedure of mediation or choose the Mediation Rules of a commercial mediation organization.
• If there is no agreement, the commercial mediator conducts the process in a manner they deem suitable for the case, the wishes of the parties, and with the agreement of all parties involved.
• The mediation can be carried out by one or more mediators, as agreed by the parties. A commercial mediator has the right to propose dispute resolution at any time during the mediation process.
• The parties can agree on the time and place for mediation; if not agreed upon, the commercial mediator will make the selection.

Benefits of Commercial Mediation in Dispute Resolution

Currently, commercial mediation has become a popular method of dispute resolution due to the following benefits:

• Justice is established by the parties themselves.
• The confidentiality of the case is effectively ensured.
• Disputes are resolved quickly.
• More cost-effective than resolution through courts and arbitration.
• Parties can control the extent of the dispute, and the cooperative relationship is still maintained after successful mediation.
• The dispute resolution procedure is friendly.

Forms of Commercial Mediation

Dispute resolution through commercial mediation can be conducted in one of the following forms regulated in Article 3 of Decree 22/2017/ND-CP:

First, Institutional Commercial Mediation

This form resolves disputes at a commercial mediation organization according to the rules of that organization. The disputing parties can choose a Commercial Mediation Center or an Arbitration Center registered for commercial mediation.

Institutional commercial mediation has the following advantages and disadvantages:

• Advantages: A professional organization provides a list of mediators with information and guarantees about the mediators’ qualifications; follows established rules and mediation procedures.
• Disadvantages: The disputing parties must adhere to the organization’s rules; they must pay mediation fees according to a fixed schedule.

Second, Ad Hoc Commercial Mediation

This form of dispute resolution is conducted by ad hoc commercial mediators chosen by the parties according to regulations and agreements between the parties.

Ad hoc commercial mediation has the following advantages and disadvantages:

• Advantages: Less influence from the mediation organization as it works directly with one or more mediators as requested. For this mediation method, the parties can apply procedures prescribed by law, apply the rules of a specific mediation organization, or agree to develop a suitable procedure.
• Disadvantages: Without an organization to resolve the dispute, it may lack professionalism, leading to a waste of time and costs without achieving the desired effectiveness.

Contents of Dispute Resolution through Commercial Mediation Consultancy

Our consulting services for dispute resolution through commercial mediation are designed to meet the diverse requirements of our clients. Specifically, the scope of services includes, but is not limited to:

Which Disputes Should Be Resolved through Commercial Mediation

Parties involved in a dispute have the right to choose different dispute resolution methods. However, for disputes within the scope that can be resolved through commercial mediation, the method of commercial mediation should be chosen before considering other dispute resolution methods. Therefore, Long Phan Consulting Company will provide advice and propose the most suitable dispute resolution method for clients.

Issues to Address Before Mediation

• Advise on selecting the commercial mediation method according to regulations or specific cases.
• Guide and advice on drafting a request for a mediation document.
• Consult on various mediation fees and how to pay them.
• Develop a plan and advise on how to agree on selecting an appropriate mediator.
• Draft, amend, and supplement the client’s statement of case to be sent to the Arbitration Center.
• Propose solutions for dispute resolution.

Commercial Mediation Process and Procedures

• Provide detailed advice on the sequence and procedures for mediation if the parties choose the mediation rules of a commercial mediation organization.
• Advise and construct the sequence and procedures for mediation if the parties do not select the mediation rules of a commercial mediation organization.
• Advise, adjust, and change to the most optimal dispute resolution plan.

Post-mediation Actions

Firstly, if the mediation is successful:

• Advise on the order, procedures, and preparation of documents required to request the court to recognize the successful mediation outcome to ensure the agreement is implemented in reality.
• Plan to establish mechanisms to implement the commitments made in the successful mediation if it falls under the case where the mediation outcome cannot be recognized by the court.
• Develop and draft mechanisms for implementing the agreed-upon mediation commitments and responsibilities in case of breach of agreement.

Secondly, if the mediation is unsuccessful:

• Advise on the next steps whether to continue negotiating, mediate, or to initiate litigation.
• Choose the form of dispute resolution through court litigation or arbitration.
• Advise on the order and procedures for dispute resolution through court or arbitration.
• Draft plans and strategies for an effective dispute resolution process.
• Prepare documents and evidence as the basis for dispute resolution.
• Draft petitions during the dispute resolution process as they arise.
• Present arguments, assessments, and considerations of the disputed issue to find suitable and effective solutions.
• Advise on enforcement issues after the court decision becomes legally effective.

Commercial Mediation Consultation Process

The consultation process of Long Phan Consulting Company for clients in need of commercial mediation consultancy is conducted as follows:

• Step 1: Receive customer information

Gathering personal information from the client, the dispute issue they are facing, their desires, and receiving any documents and files provided by the client.

• Step 2: Preliminary analysis, evaluation, and classification of the client’s issue.
• Step 3: Provide preliminary advice to the client and quote the service fee for the client to consider and decide.
• Step 4: After the service fee has been quoted, if the client agrees with the fee, proceed to sign the service contract.
• Step 5: Plan the execution.
• Step 6: Carry out the agreed tasks in the service contract and regularly report progress to the client.
• Step 7: Evaluate effectiveness.

Some frequently asked questions about dispute resolution by commercial mediation

Here are some frequently asked questions that customers can refer to:

Is it mandatory to have a lawyer present in commercial mediation?

No, it is not mandatory to have a lawyer present in commercial mediation. However, having a lawyer present can help you protect your rights and ensure that the agreement reached is fair and legal.

What is the average time to complete a commercial mediation?

Commercial mediation is usually much shorter than litigation. A mediation can be completed in a few days or weeks, depending on the complexity of the dispute.

Is the result of commercial mediation legal?

A commercial mediation result is an agreement between the parties and is legally binding. The parties can request the court to recognize the mediation result to ensure its enforceability.

What types of disputes are commonly resolved by commercial mediation?

Commercial mediation is suitable for many types of disputes, including contract disputes, intellectual property disputes, real estate disputes, and disputes between businesses.

What are the advantages of commercial mediation over litigation in court?

Commercial mediation saves time and money, maintains business relationships, ensures confidentiality, and allows the parties to control the dispute resolution process.

Is the commercial mediation process flexible?

The commercial mediation process is very flexible. The parties can agree on the order, procedures, and time of mediation.

Does commercial mediation ensure confidentiality?

Commercial mediation ensures high confidentiality. All information and documents disclosed during the mediation process are kept confidential.

If the mediation fails, can the parties continue to litigate?

Yes, if mediation fails, the parties still have the right to continue litigation in court or arbitration.

Does commercial mediation help maintain business relationships?

Commercial mediation helps maintain business relationships better than litigation, because the parties find a common solution themselves instead of having a court or arbitration decide.

Does commercial mediation apply to disputes between individuals and businesses?

Yes, commercial mediation can apply to disputes between individuals and businesses, as long as the parties agree to use this method.

When a dispute occurs, one of the disputing parties can choose various resolution methods such as Court, Arbitration. Additionally, there is a resolution method considered optimal, swift, effective, and particularly maintaining the partnership relationship, which is commercial mediation. If you have questions or need consultation and guidance on dispute resolution, you can contact Long Phan Consulting Company via Hotline: 0906.735.386 for detailed and specific support.