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

Filing Fees:

€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 – 500,000 640 2560
500,001 and over 800 5120
  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 there will be:
  • An additional fee of €20 per hour for the Consumer and €80 per hour for the Trader for any disputes between €0 – €10,000.
  • An additional fee of €40 per hour for the Consumer and €160 per hour for the Trader for any disputes over €10,000
  • The maximum amount payable by the Consumer is €800

Other expenses:

The expenses of the trader do not include the cost of using sites owned/leased/licensed by the Center to resolve the dispute. These expenses are chargeable at €100 per day + VAT in case facilities owned/leased/licensed by the Center are used. They are not payable in case the Trader is committed to ADR through an annual subscription to the Center or where the Center decides to exempt the Trader from such expenses.