Contact us:
1058 Sofia, 9 Iskat Str.
Tel.: (+359 2) 8117 560, 8117 561,
8117 547, 8117 546
Fax: (+359 2) 987 32 09
E-mail: acourt@bcci.bg
Web: www.mediation.bcci.bg

ABOUT MEDIATION

NATURE AND ADVANTAGES OF MEDIATION

Mediation is a voluntary and confidential procedure aimed at out-of-court dispute resolution and involving a third party – mediator that assists the parties to the dispute in reaching a mutually acceptable settlement - Art. 2 Mediation Act (MA).

DIFFERENCES BETWEEN MEDIATION, LITIGATION AND ARBITRATION

• In the court and arbitration proceeding the dispute is resolved by a judge or arbitrator.

In mediation parties resolve their dispute on their own, assisted by a mediator.

• In the court and arbitration proceeding the resolution is based on the applicable law. In mediation the resolution is based on parties interests.
• The court and arbitration proceedings are formal and based on strict rules, provided for by a statute or any legal regulations. In mediation there are clear stages and rules, bur it is much less formal, flexible and controled by the parties than the court or arbotration proceedings.

• Voluntary procedure, controled by the parties

The parties have control over the dispute and its outcome. They are directly engaged in the negotiations for the dispute reolution.

They reach and prepare an agreement on their own that corresponds to their needs and interests.

The voluntary nature of mediation means that even if parties have agreed to refer their dispute to mediation, they are not obliged to continue with the mediation procedure after the first meeting. Thus, parties always control mediation. Whether the mediation procedure will continue or not depends entirely on parties decision.

The voluntary nature of mediation means as well that it can not be imposed a resolution to parties in dispute. In order to reach an agreement, parties should voluntarily agree thereon.

• Fast

In most of the cases mediation takes a few days.

Since in many cases mediation is held at an earlier stage of dispute before the relations have worsen, an agreement can be reached much faster than in litigation.

• Economic

Mediation is less expensive compared to litigation and arbitration procedure.

Parties save funds by reducing the expenses and the time for resolution.

• Preserves and improves parties’ relations

Mediation helps parties overcome the hostility in their relations and to to establish grounds for their future relations based on practical sense and mutual interests.

• Confidential

Mediation is confidential regarding all circumstances, data and documents that become known to the participants in the course of the mediation procedure – Art. 7 MA.

Confidentiality serves to encourage frankness and openness in the process by assuring the parties that any admissions or offers for settlement will not have any consequences beyond the mediation process. They cannot, as a general rule, be used in subsequent litigation or arbitration. The BCCI Charter and Mediation Rules contain detailed provisions preserving confidentiality in relation to the existence and outcome of the mediation.

• Impartial

The parties are assisted by an impartial mediator.

• Facilitated

The Mediator facilitates and actively assists the parties to communicate better and to seek and evaluate possible resolutions of their dispute.

Mediator may assist parties to explore options that still have not considered on their own.

Mediators are carefully selected based on their professional knowledge and experience. All mediators have passed the mediation training required by the law. Most of them have qualification in the field of commercial mediation.

• Convenient

Mediation is conducted in a friendly and comfortable environment and at time convenient to parties.

• Effective

About 80% of the mediation cases result in agreement which is executed voluntarily by the parties, because they have reached the agreement with joint efforts.

• Win-win

In mediation both parties win since they reach a mutually acceptable agreement created by them, which corresponds best to their needs and interests.

• New field for professional and personal development – representative and advisor in mediation
• Opportunity for addintional and new qualification – mediator
• Opportunity for new clients – higher competitiveness

• Reducing the work load of the court which gives the court more time to focus on the more complicated cases.
• Faster and favourable conclusion of court procedures – by approval of a settlement agreement.

• Mediation creates new culture of personal and business communication and dispute resolution.
• Resolution of conflicts in a fast and non-aggressive manner establishes good conditions for sucessfull business activities and protects legal and social stability.