Conciliation

ADR Services

WHAT IS CONCILIATION

Conciliation is a type of Alternative Dispute Resolution (ADR) procedure whereby the parties come together in order to settle their disputes through an agreement.

A third party called the “Conciliator” is appointed who is neutral and helps the parties find common grounds in order to settle their disputes. Although similar to mediation, it differs in that the Conciliator will provide his/her expert opinion whilst trying to solve the underlying issue which gave rise to the dispute. Therefore, the Conciliator will provide his/her views on the matter whilst at the same time helping the parties understand each other’s strengths and weaknesses.

Secondly, the Conciliator will provide the parties with a settlement proposal of what he believes would be best for them, whilst the mediator will generally refrain from making a proposal but will prepare an agreement based on what has been agreed between the parties.

WHAT ARE THE BENEFITS OF CONCILIATION

  1. Conciliation is fast and cost-effective. It is aimed at getting the parties to understand each other’s point of view and thereby encourages the continuance of cooperation between the parties.
  2. The Conciliator will not only hear the dispute but will also provide expert and experienced opinions on how to solve the dispute.
  3. Conciliation offers informality and flexibility: i.e. the parties remain within their comfort zone whilst the rules are not rigid as the parties will generally dictate the course that it will take.
  4. Unlike the court, it is a confidential process with the parties in the dispute avoiding reputational damage.
  5. Party autonomy is ensured in that the parties will be able to choose the time of the Conciliation as well as the language. Currently, the Cyprus Consumer Center for ADR offers solution to disputes in two languages: Greek and English.

As has been suggested, “For effective conciliation, it is necessary that the parties to dispute should be brought together face to face at a common place where they can interact with each other & with the conciliator to arrive at a settlement of the dispute. The importance of conciliation is that in other proceeding decision is given by the presiding authority & it is binding accordingly. But in conciliation there is amicable settlement where parties themselves have reached to the decision i.e. settlement & which is binding as per their decision”

The Cyprus Consumer Center for ADR provides for specific Conciliation Rules for Consumers and Traders to settle their disputes. Our rules are based on UNCITRAL Conciliation Rules and on the spirit of Directive 2013/11/EU of the European Parliament and of the Council of 21 May 2013 on alternative dispute resolution for consumer disputes.

Cyprus Consumer Center Conciliation Rules

CONCILIATION FEES

i) FOR CONCILIATION IN CIVIL AND COMMERCIAL DISPUTES

Filing Fees for a Request (payable by either one or both parties)

€50 non-refundable filing fee, to file the dispute with the Center.

Conciliation Fees

Amount of the Dispute in Euro (€) Trader Fees in Euro (€)
Up to 10.000 600
10,001 -50,000 900
50,001 – 100,000 1200
100,001 – 500,000 1700
500,001 and over 2500
  1. All the above fees are exclusive of VAT and are payable prior to the initiation of the Conciliation.
  2. The above fees are based on 8 hours of Conciliation. For every extra hour required for Conciliation the following fees are payable:
  • An additional fee of €80 plus VAT per hour for disputes between €0 – €10,000.
  • An additional fee of €120 plus VAT per hour for disputes over €10,000.

ii) FOR CONCILIATION IN CONSUMER DISPUTES

Filing Fees for a Consumer who files the Request

€20 non-refundable filing fee, to file the dispute with the Center.

Conciliation Fees

Amount of Purchased Goods or Services in Euro (€) Consumer Fees in Euro (€)* Trader Fees in Euro (€)
Up to 500 20 80
501 – 2.000 40 160
2.001 – 10.000 80 320
10,001 -50,000 160 640
50,001 – 100,000 320 1280
100,001 and over 640 1700
  1. All the above fees are exclusive of VAT and are payable prior to the initiation of the Conciliation.
  2. The above fees are based on 8 hours of Conciliation. For every extra hour required for Conciliation the following fees are payable:

(a) An additional fee of €20 plus VAT per hour for the Consumer and €60 plus VAT per hour for the Trader for any disputes between €0 – €10,000.

(b) An additional fee of €40 plus VAT per hour for the Consumer and €100 plus VAT per hour for the Trader for any disputes over €10,000.

* For financial disputes, no Conciliation Fee is payable by the Consumer. For all other cases, the maximum amount payable by the Consumer is €800