Mediation

The innovation and willing to engage in new projects are among the distinguishing features of Vlasova, Mikhel & Partners team. Even before the adoption of the Law on Mediation, founder  of the firm Liliya Vlasova became involved in mediation. She has been trained in Russia and became the first in the country qualified mediator. In 2011-2012 she led the pilot project on the use of mediation to resolve the economic and other disputes in the economic system of justice. This project allowed Liliya Vlasova to gain practical experience in commercial mediations. Currently, Liliya Vlasova is one of the most experienced mediators in Belarus, an internatioanal coach. Her expertise has received international recognition. She is an expert on commercial mediation for the European Bank for Reconstruction and Development (EBRD) and the International Organization for the Development of Law (IDLO). She is the only lawyer in Belarus recommended by Who's Who Legal 2016 in Mediation.

How does a mediation process work?

Mediation - confidential negotiations between the conflicting parties with a neutral person - mediator. The neutrality of the mediator consists in the fact that he can not offer or impose upon the parties its decision controversial issues. The mediator will organize the negotiation process, helps the parties to establish communications, identify their interests and, ultimately, to achieve mutually beneficial agreements to resolve disputes. The agreements are fixed in the mediation agreement, the observance of which is guaranteed by the possibility of applying to the court for enforcement.

What is a commercial mediation?

When we talk about commercial mediation, then we mean the use of mediation in resolving:

• Disputes arising from business agreements (including foreign trade agreements) and employment contracts;
• Disputes between business owners;
• Disputes between owners and management;
• Internal conflicts in a company.

What are the Benefits of Mediation?

Mediation is the best way to resolve conflicts because it is cos-t and time-saving and gives us a lot of other intangible benefits (confidentiality and preservation of reputation).

If we compare the resources that we need to spend in court and mediation, the mediation seems more attractive way to resolve disputes. For example, consider the most common dispure for debt recovery in the amount of 10 000 rubles.

Why is a Mediation?

	Court	Mediation
Costs	525 bel. rubles (~ 200 €) – State duty for consideration of the case in the court of 1st instance; 210 bel. rubles (~ 75 €) – State duty for consideration of the court of appeal; 300 - 500 bel. rubles (~ 100 - 180 €) – attorney fees per day.	300 bel. rubles (~ 100 €) - one mediation session, costs are divided, usually between the parties equally
Terms	2 – 6 months	1-2 mediation sessions (3-6 hours)
Execution	No data on volume of voluntary execution of court decisions	85-92% of  voluntary execution
Conditions of holding  procedure	Formal, publicity	Informal (procedural matters agreed between the parties), confidentiality
Result	The court's decision	A mediation agreement and possibility of its enforcement

 

How to start a business entity to use mediation as a method of dispute resolution?

The most simple way, by agreement with the other side, start to include a mediation clause in the labor and economic contracts, including foreign trade. Example text mediation clause can be as follows:

Pre-judicial method of resolving disputes mediation clause:

1. All conflicts, disagreements and disputes arising out of this agreement, the parties undertake to settle in mediation procedure as a mandatory pre-trial resolution of the dispute, under the conditions and in the manner prescribed by applicable law.
2. In the event of a dispute, one party transfer to the other party a written offer to settle the dispute in the mediation procedure. The other party within seven (7) days from the date of receipt notices of its approval (disagree) to participate in the mediation procedure.
3. The Party initiated a mediation is responsible for choosing a mediator for resolving the dispute), and indicates a candidate in the proposal.
4. The timing and venue of the mediation the parties carry out jointly with the participation of a mediator.
5. Pre-trial procedure for settling the dispute is considered to be met in the case of:
   • impossibility to give a proposal for resolving the dispute in the mediation procedure (the unknown location of the second part, the return of unclaimed mail or any other cause) or no response to the offer of 7 (seven) days after the delivery by the other party;
   • not reaching an agreement on contentious issues in the mediation procedure;
   • conclusion of a mediation agreement between the parties;
   • mediator's decision to terminate the mediation procedure in case of absence of the parties or their representatives to conduct negotiations without prior notice to the mediator, as well as in case of violation of the Rules of mediation, agreed between the parties in the Agreement on the use of mediation.
6. The cost and fees of the mediator shall be shared equally by the parties (other options). The remuneration and terms of payment shall be established by agreement of the parties and the mediator, and is fixed in the Agreement on the use of mediation.

If the dispute is already in the court, at the preparatory meeting (only) the parties have a possibility to apply to the court to use mediation. To confirm the intention, the parties are obliged to submit to the court the signed agreement on the use of mediation. In this case, the court takes the decision to leave the dispute without the permission of the plaintiff and returns 100% of the paid registration fee.

The latest information about VMP mediation cases is in the 'News' section.

Liliya Vlasova, the mediator (mediator certificate #2, issued by the Ministry of Justice of the Republic of Belarus, 03.06.2014), senior partner, director of "Vlasova Mikhel & Partners'.