Frequently Asked Questions about AMC Mediation
Frequently Asked Questions about AMC Mediation
Mediation is according to the Law 3898/2010 defined as "the structured procedure, regardless of its name, by which two or more parties having a dispute, attempt to solve it with the assistance of a Mediator". The disputing parties by agreeing that their dispute will be regulated by the provisions of the aforementioned Law, they resort to a mutually acceptable solution, by which they negotiate, under the assistance of a specially trained, non-partial and independent third party, the Mediator, in order to find conductive solutions which better correspond to their interests. In case this assisted negotiation leads to a positive outcome, the parties' agreement is being kept in a record, which will take the form of an enforcement order and be enforced within the State or abroad.
The main difference between Mediation and Arbitration depends upon the fact, that in Mediation the parties attempt to resolve their particular dispute through negotiation with the assistance of the Mediator, who is the decision maker of the relevant dispute. In Mediation the parties are bound by the outcome of the procedure, only in case they sign the relevant resolution agreement which may become an enforcement order. On the other hand, Arbitration resembles more the State's court process, since each dispute is being judged in a binding way by the Arbitral Tribunal, consisted of Arbitrators, who are being selected by the parties and whose final decision results in res judicata and is enforceable.
- is governed by non- disclosure and confidentiality. According to Article 5 of the AMC Rules of Mediation, the Mediator, the parties, their assignee lawyers, the Mediation Coordinator, the German Hellenic Chamber of Commerce including its agents, any requested expert, technical assistants and interpreters are obliged to be confidential in every stage of the procedure from the beginning, during the proceedings and at the time of the completion of the Mediation procedure, the subject- matter of the dispute, as well as any other information of which the aforementioned persons take cognizance within the framework of each Mediation procedure, except if the parties agree expressly and on paper for the opposite,
- one of its characteristics is the speed of the process. Mediation renders the resolution of a dispute attainable within a small period of time, i.e after intra-day sessions, although often it happens to be resolved within one day. According to Article 9 of the AMC Rules of Mediation, the Mediation Procedure is completed after the lapse of 45 from the day that Mediator has been appointed,
- it costs less compared to the court proceedings, since: a) the administrative charges, Mediator's payment and the attendant lawyer's payment are principally lower than the overall costs of the court proceedings, b) after the record is signed, the dispute is being resolved once, and it is binding upon all parties in the dispute without any further rising of the costs because of the recourse to another degree of jurisdiction, c) because of the concentrated time occupation of the parties with the particular dispute, working hours are not repeatedly lost, especially as it regards executive officers or their employees, something that is inescapable in the case of a trial (through the recurrent preparations or drawn- out trials and long trial dates etc.)
- it is flexible procedure. The parties determine not only the place, time and duration of their meetings, but also the matters of their negotiation, in which, during the Mediation procedure, they may add further issues for discussion (something impossible/inadmissible within the framework of a Hearing), thereby reaching an outcome which completely satisfies their needs and interests,
- it is a creative procedure. Parties are encouraged by the Mediator to find common grounds in order to reach an agreement as it regards both the existing disputes among them, their future relationship and their general interests,
- in general it contributes to the salvage and at the same time, to the preservation of the parties' relationship, which is of paramount importance, especially taking into account the current difficult business environment.
After the conclusion of the “Agreement to Mediate”, the parties express their will to resolve their dispute with the assistance of a Mediator, chosen from the Mediators' list Catalogue of AMC. They may resort to Mediation prior to or after the lawsuit is initiated. It should also be underlined, that even in the case a mediation clause exists, it is a necessary prerequisite that the parties and the Mediator sign the "Agreement to Mediate", which is subsequently ratified by the Mediation Coordinator and the AMC director.
The "Mediation Agreement" (or Settlement Agreement) is drafted and signed by the parties and their assignees, in case the Mediation procedure has a positive outcome. The "Record of Mediation" is drafted by the Mediator, and includes, apart from the name of the Mediator and the other participants in the Mediation procedure, the "Agreement to Mediate" and the "Mediation Agreement", or the ascertainment of the failure to Mediate as well as its reasoning. The original "Record of Mediation" may, after the request of a party, be deposited under the responsibility of the Mediator to the Secretariat of the first Instance Court of the district where Mediation took place. After the deposit of the "Mediation Record", and under the condition that it incorporates the parties' agreement regarding the existence of an enforceable claim, it constitutes according to the provisions of the Civil Procedure Code, an enforcement order.
Commercial disputes may be referred to Mediation under the auspices of the AMC irrespective of whether the parties are members of the German Hellenic Chamber of Commerce or not. A necessary prerequisite is to have the legal right to dispose their disputes. Specifically, the said disputes must not fall within the scope of mandatory provisions and their subject matter must be capable of being settled under the underlying Law. This kind of disputes are e.g. claims deriving from commercial transactions, issues regarding license for the use of trademarks, succession in businesses (especially family businesses) etc.
The Mediator is appointed by the parties from the Catalogue of Mediators of AMC or if the parties agree, with the assistance of the Mediation Coordinator. The Mediation Coordinator appoints the Mediator in case the parties cannot reach an agreement concerning the Mediator.
The Mediation Procedure of the German Hellenic Chamber of Commerce the takes place under the "Agreement to Mediate" in accordance to the AMC Rules of Mediation and in case an issue does not fall under the scope of these Rules, applicable are the provisions of the Greek legislation, and especially of the Law 3898/2010, as it is in force at that point of time.
The cost of the AMC Mediation Procedure includes the administrative costs, the Mediator's payment, as well as -after the relevant agreement of the parties- potential expenses of AMC and the Mediator. The administrative costs and Mediator's payment are to be found in the Payment Table (Annex 2 of the present AMC Mediation Rules), which is a constituent part of the the present Mediation Rules.
The parties equally bare the costs of the Mediation procedure, except it is otherwise agreed.
The sum of the administrative expences, as well as the Mediator's payment for 4 hours are prepaid by the parties, each accordingly. After the deposit of the aforementioned amount, the Secretary of Mediation delivers the folder to the Mediator. The rest of the Mediator's Payment will be deposited partially by the parties, after the relevant invitation on behalf of the Secretary of Mediation. After the completion of the Mediation Procedure the relevant settling of accounts takes place.
The administrative costs are, moreover, being deposited in cases where complete or partial agreement has not been reached.
If Mediation is multiparty, the costs are rising twenty per cent (20%) for every additional party.
The cost of AMC Mediation can approximately be specialized through the special application of cost calculator. (cost calculator, press here).
The parties equally bare the costs of the Mediation procedure, except it is otherwise agreed.
The sum of the administrative expences, as well as the Mediator's payment for 4 hours are prepaid by the parties, each accordingly. After the deposit of the aforementioned amount, the Secretary of Mediation delivers the folder to the Mediator. The rest of the Mediator's Payment will be deposited partially by the parties, after the relevant invitation on behalf of the Secretary of Mediation. After the completion of the Mediation Procedure the relevant settling of accounts takes place.
The administrative costs are, moreover, being deposited in cases where complete or partial agreement has not been reached.
If Mediation is multiparty, the costs are rising twenty per cent (20%) for every additional party.
The cost of AMC Mediation can approximately be specialized through the special application of cost calculator. (cost calculator, press here).