How does the commercial mediation process work?

Commercial mediation process is the process of resolving commercial disputes based on the agreement of the parties with the support of a mediator. This method promotes a spirit of cooperation and helps save costs and time compared to other forms of dispute resolution. This article will delve into the commercial mediation process in Vietnam.

What is commercial mediation? Classify

Commercial mediation is a method of dispute resolution agreed upon by the parties and supported by a commercial mediator as a mediator to resolve the dispute. According to Decree 22/2017/ND-CP, commercial mediation is classified as follows:

• Regulatory commercial mediation: Dispute resolution at a commercial mediation institution and its mediation rules.
• Ad hoc commercial mediation: Dispute resolution is conducted by ad hoc commercial mediators selected by the parties according to the regulations and agreements of the parties.

Commercial mediation differs from other dispute resolution methods such as court or arbitration in terms of flexibility and higher information security. The parties can proactively choose the mediator, mediation rules and mediation location.

>>> See more: Commercial Mediation – Legal Regulations You Need to Know.

Conditions for resolving disputes by commercial mediation

To resolve a dispute by commercial mediation, the prerequisite is that the parties must have a mediation agreement. According to Article 6 of Decree 22/2017/ND-CP, a conciliation agreement can be made before, during or after a dispute occurs. This means that parties can include a mediation clause in the contract at the outset, or when a dispute arises, or even during the process of resolving the dispute by other means.

Rights and obligations of the parties during commercial mediation

During the commercial mediation process, participating parties have rights and obligations as prescribed in Article 13 of Decree 22/2017/ND-CP, specifically as follows:

The disputing parties have the following rights:

• Selecting the mediation process and procedures, commercial mediator, location and time to conduct mediation;
• Agree or refuse mediation; request suspension or termination of mediation;
• Request that the mediation be conducted publicly or privately;
• Express your will and decide on the content of mediation;
• Other rights as prescribed by this Decree and relevant laws.

The disputing parties have the following obligations:

• Correctly present the truth and details of the dispute, provide information and documents related to the dispute at the request of the commercial mediator;
• Implement successful conciliation results;
• Pay remunerations and costs for commercial mediation services, unless otherwise agreed by the parties;
• Other obligations according to the provisions of this Decree and relevant laws.

>>> See more: Commercial mediation: How to effectively resolve business disputes.

Commercial mediation process

According to the provisions of Article 14 of Decree 22/2017/ND-CP, the parties have the right to choose the mediation rules of a commercial mediation organization to conduct mediation or agree on the mediation order and procedures themselves.

In case the parties do not have an agreement on the order and procedures for mediation, the commercial mediator will conduct mediation according to the order and procedures that the commercial mediator finds appropriate with the circumstances of the case, the wishes of the parties and approved by the parties.

The normal mediation process is as follows:

Step 1: Request mediation:

The requesting party needs to prepare a request for conciliation and send it to the conciliation agency or conciliation center. This application should clearly state basic information about the dispute, the reason for requesting conciliation and contact information of the parties involved.

At the same time, in the request, the requesting party needs to specifically state the content of the dispute, relevant evidence, and their desire to resolve the dispute.

Step 2: Receive and review the request:

• The conciliation center will review the validity of the request. If the request meets the conditions, the center will notify the parties about the receipt of the request.
• After receiving the request for conciliation, the center will notify the defendant about the conciliation, and provide information about the time and location of conciliation.

Step 3: Organize mediation:

• The mediation center will appoint one or more mediators with experience in the field of dispute to conduct mediation.
• The mediator will organize a meeting between the disputing parties to discuss the issue, listen to each party’s opinions and find a suitable solution.

Step 4: Mediation results:

• When successful conciliation results are achieved, the parties prepare a document on the successful conciliation results. The document on the results of successful conciliation is enforceable against the parties according to the provisions of civil law.
• In case successful conciliation results are not achieved, the parties have the right to continue conciliation or request an Arbitrator or Court to resolve the dispute according to the provisions of law.

Prestigious and professional consulting and support services in commercial mediation

Long Phan Consulting Company provides professional consulting and support services in commercial mediation. Our team of experts has extensive experience and knowledge, helping clients achieve the best results during the mediation process. Our services include:

• Consulting on conditions for applying commercial mediation methods;
• Consulting on principles during the mediation process;
• Consulting and planning effective mediation options;
• Consulting on the rights and obligations of the parties when participating in commercial mediation;
• Consulting on choosing a suitable mediator;
• Consulting and developing mediation procedures if you do not choose the mediation rules of a commercial mediation organization;
• Consulting and guiding the commercial mediation process;
• Drafting applications and related documents for the conciliation process;
• Consulting and guidance on collecting evidence documents;
• Consulting on the value of documents recording conciliation results;
• Advise on solutions when conciliation fails;
• Consulting and answering other related issues.

Questions related to the commercial mediation process

Customers can refer to more related questions about the commercial mediation process below:

What rights and responsibilities does a commercial mediator have?

The conciliator has the right to request the parties to provide relevant information and documents and organize conciliation meetings. Their responsibility is to keep information confidential, ensure neutrality and assist the parties in reaching an agreement.

How long does commercial mediation usually last?

Mediation time depends on the complexity of the case and the cooperation of the parties. However, mediation is often quicker than court proceedings or arbitration.

Are successful conciliation results recognized and enforced like a court judgment?

The conciliation document is legally valid and enforceable for the parties. However, it is not enforced by an enforcement agency like a court judgment, but is based on the voluntariness of the parties. In case of necessity, the parties can request the Court to recognize the successful conciliation results.

In what cases should commercial mediation be chosen instead of court or arbitration?

Commercial mediation is suitable for disputes where the parties wish to maintain a business relationship, need flexibility and information security, and wish to save time and costs.

If either party does not comply with the successful mediation, what can the other party do?

The other party can sue in court to request the other party to perform the obligations committed in the successful conciliation document.

Does the commercial mediation process ensure information confidentiality?

The commercial mediation process is carried out on the principle of information confidentiality. The mediator and relevant parties are responsible for keeping information about the case confidential.

During the mediation process, can the parties themselves make proposals to resolve the dispute?

The parties have the right to proactively make proposals to resolve disputes during the mediation process. The mediator will assist the parties in discussing and finding the optimal solution.

Conclude

Commercial mediation is an effective dispute resolution method, helping parties maintain business relationships and save costs. If you need advice or support on commercial mediation, please contact Long Phan Consulting Company via the hotline: 0906735386 for the best support.