Commercial Mediation: How to Effectively Resolve Business Disputes

Commercial mediation is an effective method for resolving disputes between businesses. Despite its advantages, this method is not widely used because many individuals and organizations do not fully understand the legal regulations and benefits of commercial mediation. This article by Long Phan provides insights into resolving business disputes effectively through commercial mediation. Please refer to the following information.

Commercial mediation

What is Commercial Mediation?

Commercial mediation is a method of resolving commercial disputes through mutual agreement, with a commercial mediator acting as an intermediary to assist in resolving the dispute according to legal regulations. This is outlined in Article 3, Clause 1 of Decree No. 22/2017/ND-CP on commercial mediation, issued on February 24, 2017.

Principles of Commercial Mediation

According to Decree No. 22/2017/ND-CP, Article 4, mediation must adhere to the following principles:

• The parties involved in the dispute must participate in mediation voluntarily and with equal rights and obligations.
• Information related to the mediation process must be kept confidential, except where the parties have agreed otherwise in writing or where the law stipulates otherwise.
• The mediation agreement must not violate legal prohibitions, societal ethics, aim to evade obligations, or infringe on the rights of third parties.

Adhering to these principles makes commercial mediation more effective, helping parties resolve disputes quickly.

Conditions for Applying Commercial Mediation

According to Article 6 of Decree No. 22/2017/ND-CP, the conditions for applying commercial mediation include:

• Disputes can be resolved through mediation if the parties have agreed to mediation. The form of mediation agreement can be established directly in a contract or as a separate document, but it must be in writing and ensure clarity and consistency between both parties.
• Parties can agree to mediate either before or after a dispute arises or at any stage of the dispute resolution process.

These conditions provide flexibility and clarity to ensure cooperation and respect among the involved parties.

Why Choose Commercial Mediation?

Choosing commercial mediation to resolve disputes offers several advantages over other methods:

• It is a simple, flexible process that saves time and costs for the parties involved.
• With a spirit of goodwill and cooperation, businesses are more likely to reach an agreement quickly compared to litigation procedures in court.
• The regulation of the method of implementing mediation provided in Decree No. 22/2017/ND-CP offers businesses various options for choosing appropriate methods and processes, avoiding complex legal procedures and prolonged costs.
• Mediation allows businesses to demonstrate goodwill, understand each other better, and maintain and develop business relationships, which is the ultimate goal of commercial activities.

In summary, with the legal recognition of commercial mediation and its numerous benefits for businesses in dispute resolution, this method is a valuable option for companies to consider.

Procedure and Steps for Conducting Mediation

According to Article 14 of Decree No. 22/2017/ND-CP, the procedure for conducting commercial mediation is outlined as follows:

Step 1: Selecting Mediation Principles

• The parties have the right to choose the Mediation Rules of the commercial mediation organization or to agree on the mediation process and procedures themselves.
• If the parties do not agree on the mediation process and procedures, the commercial mediator will conduct the mediation according to the procedure and methods deemed appropriate by the mediator based on the case details, the parties’ wishes, and the parties’ approval.

Step 2: Choosing the Mediator

The dispute may be mediated by one or more commercial mediators as agreed by the parties.

Step 3: Determining the Location and Time of Mediation

• At any stage of the mediation process, the commercial mediator has the right to propose solutions to resolve the dispute.
• The location and time of the mediation will be determined according to the parties’ agreement or by the choice of the commercial mediator if the parties do not reach an agreement.

Step 4: Mediation Outcome

• When a successful mediation outcome is achieved, the parties will prepare a written document outlining the successful mediation. This document is legally enforceable according to civil law regulations.
• If the mediation does not result in a resolution, the parties have the right to continue mediation or request arbitration or court resolution according to legal provisions.

Step 5: Recognizing the Mediation Outcome

• The document outlining the successful mediation outcome will be reviewed and recognized according to civil procedural law.

Commercial mediators play a crucial role in facilitating negotiations between the disputing parties, ensuring that the mediation process is conducted fairly and reflects the intentions of all involved parties.

Note: The mediation process terminates under the following circumstances:

• When the parties reach a successful mediation outcome.
• When the commercial mediator deems it unnecessary to continue mediation, after consulting with the parties.
• At the request of one or more of the disputing parties.

Commercial mediation procedures

Enforceability

According to Article 15, Clause 1 of Decree No. 22/2017/ND-CP, when a successful mediation outcome is achieved, the parties must prepare a written document outlining the result. This document is enforceable according to civil law regulations.

According to Clause 8, Article 419 of the 2015 Civil Procedure Code, the decision to recognize the agreement of the parties has legal effect immediately upon issuance and is not subject to appeal or further review.

Effective Commercial Dispute Resolution Consultation

Our commercial dispute resolution services offer the following specific tasks:

• Assessing risks and advantages for clients in relation to the arising dispute;
• Advising on choosing an appropriate method for resolving commercial disputes;
• Representing clients in negotiations with counterparts;
• Advising on legal issues regarding rights and obligations in dispute resolution;
• Drafting and reviewing settlement agreements to ensure clients’ interests are protected.
• Advising on risk management during operation to avoid potential disputes.

Long Phan’s commercial dispute resolution services will ensure client satisfaction by saving time and costs, and protecting the interests of your business.

Consultation on Resolving Disputes through Commercial Mediation

Properly applying commercial mediation not only helps resolve disputes effectively but also lays the foundation for long-term and sustainable cooperation between business parties. The above article from Long Phan provides information on effective commercial dispute resolution through mediation. For more detailed information, please contact Long Phan at hotline 0906.735.386. Thank you!