Distinguish between commercial mediation and litigation mediation

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Commercial mediation and litigation mediation these two methods of dispute resolution have their own benefits. Commercial mediation helps find solutions that save time and money while maintaining good relationships. Meanwhile, mediation in litigation often takes place within the legal framework, protecting the rights of the parties according to the law. Below, Long Phan will help you clearly understand these two types of mediation through comparison. Welcome to follow!

What is the difference between commercial mediation and litigation mediation?
What is the difference between commercial mediation and litigation mediation?

Concept of commercial mediation and litigation mediation

  • Pursuant to Clause 1, Article 3 of Decree 22/2017/ND-CP, commercial mediation is a method of resolving commercial disputes agreed upon by the parties and supported by a commercial mediator as a mediator resolves disputes according to the provisions of this Decree.
  • Pursuant to Article 10 of the Code of Civil Procedure 2015, conciliation in civil proceedings is the court’s responsibility to conduct conciliation and create favorable conditions for the litigants to agree on the matter resolve civil cases according to the provisions of this Code.

Compare commercial mediation and litigation mediation

Alike

  • Both are methods of dispute resolution
  • Both are based on common principles such as: respecting the litigant’s right to self-determination and ensuring the independence of the judge.

Different

Criteria Mediation in commerce Mediation in litigation
Legal basis Decree 22/2017/ND-CP Code of Civil Procedure 2015 (amended and supplemented in 2022)
Subject proceeds Commercial mediators are in charge of resolving disputes.

Commercial mediators must meet the conditions according to Article 7 of Decree 22/2017/ND-CP.

Judges are in charge of dispute resolution when these agencies resolve disputes at the request of the parties.
Classify Pursuant to Clauses 5 and 6, Article 3 of Decree 22/2017/ND-CP, conciliation includes conciliation according to regulations and conciliation according to cases. There is no classification on the type of mediation
Resolution conditions Pursuant to Article 11 of Decree 22/2017/ND-CP, the condition for a mediator to resolve a dispute is prior agreement. Pursuant to Clause 1, Article 205 of the Code of Civil Procedure 2015, the condition for conciliation of proceedings is that there must be a lawsuit filed in Court and the Court accepts and resolves it according to the provisions of the Code of Civil Procedure.
Time to resolve Mediation is conducted by the parties before requesting a settlement in Court or Arbitration. Mediation is conducted within the period of preparation for the first instance trial
Compulsory It is not mandatory but depends on the agreement of the parties Some disputes must go through conciliation procedures, as prescribed in the Labor Code, Land Law and Law on Marriage and Family.
Criteria for comparing commercial mediation and litigation mediation
Criteria for comparing commercial mediation and litigation mediation

Procedures for recognition of successful conciliation

Commercial mediation

Procedures for recognizing successful commercial mediation results outside of court, as prescribed in Article 419 and Articles 363, 364, 365 of the Code of Civil Procedure 2015, include the following steps:

Step 1: Receive and process requests
The Court receives and processes applications for recognition of successful out-of-court conciliation results according to the provisions of Articles 363, 364 and 365 of the Code of Civil Procedure 2015.

Step 2: Open a meeting to consider the request
Within 10 days of the Court’s decision to open the meeting, the application review session will be held according to the provisions of Articles 367 and 369 of the Code of Civil Procedure 2015.

Step 3: Issue a decision to recognize successful conciliation results
The judge issues a decision to recognize if the conditions are met according to Article 417 of the Code of Civil Procedure 2015. This decision is sent to the relevant parties and the Procuracy at the same level.

Step 4: Execution of decisions
The recognition decision is enforced in accordance with the law on enforcement of civil judgments.

Mediation in litigation

Conciliation procedures in proceedings under Clause 4, Article 210 of the Code of Civil Procedure 2015 take place according to the following steps:

Step 1: The judge disseminates legal regulations related to the case, helps the parties understand their rights and obligations, and analyzes the legal consequences of successful mediation so that the parties can voluntarily agree.

Step 2: The parties presented their opinions:

  • Plaintiffs and their rights defenders state the content of the dispute, requests for lawsuits, and views on resolution.
  • The defendant and his or her rights defender present objections and counterclaims (if any).
  • Relevant people state their opinions and independent requests (if any).
  • Other participants express their opinions (if any).

The judge then determines the agreed points and requests additions if necessary.

Step 3: The judge concludes on the issues that have and have not been agreed between the parties.

Step 4: Make a decision to recognize the agreement between the parties. After 7 days, if no one changes their opinion, the Judge will issue a decision to recognize the successful conciliation result.

Steps to recognize successful mediation of two forms of mediation
Steps to recognize successful mediation of two forms of mediation

Consulting services on the order and procedures for conducting commercial mediation and litigation mediation

With the strong development of trade and economics, it is inevitable when doing business that disputes leading to lawsuits are common. Therefore, Long Phan provides comprehensive services to support you, including:

  • Consulting on legal regulations on commercial mediation;
  • Consulting on procedures to request recognition of successful commercial mediation results;
  • Customer representative submits a request for recognition of successful conciliation results;
  • Consulting and supporting the preparation of necessary documents and records for commercial mediation;
  • Consulting and representation during the commercial mediation process;
  • Support negotiations and agreements between parties during the mediation process
  • Consulting and representing to handle disputes if mediation fails.

To carry out the procedures for conducting commercial mediation and litigation mediation, you need to prepare sufficient evidence and supporting arguments. If you have difficulty preparing documents to participate in mediation or need advice and support on commercial mediation, please contact via Hotline: 0906735386. Long Phan always accompanies you.

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