WHAT IS MEDIATION
Mediation is defined as a structured process, however named or referred to, whereby two or more parties to a dispute attempt by themselves, on a voluntary basis, to reach an agreement on the settlement of their dispute with the assistance of a physical person called the “Mediator”.
It is a confidential process whereby parties try to settle their dispute without the need to resort to Court whereas however their right to access the Court is not in any way affected.
WHAT ARE THE BENEFITS OF MEDIATION
Mediation is less expensive and more time-efficient than the Court procedure. As the preamble of Directive 2008/52/EC of the European Parliament and of the Council of 21 May 2008 on Certain Aspects of Mediation in Civil and Commercial Matters explains:
“Mediation can provide a cost-effective and quick extrajudicial resolution of disputes in civil and commercial matters through processes tailored to the needs of the parties. Agreements resulting from mediation are more likely to be complied with voluntarily and are more likely to preserve an amicable and sustainable relationship between the parties. These benefits become even more pronounced in situations displaying cross-border elements.”
Mediation provides the opportunity to the parties involved to settle the dispute in a friendly manner and thereby allows them to continue to do business in the future. Furthermore, the contracting parties also benefit from the fact that the proceedings are conducted privately and confidentially which leads to a further advantage given that the reputation of the business of the Trader is maintained.
- The procedure offers flexibility because the “parties remain in control of the decision to settle and terms of the settlement”.
- Even though it is not a Court judgement the parties could proceed with an agreement, which is enforceable by a Court.
- The discussions that take place during the Mediation are without prejudice (i.e. cannot be used against the party in subsequent judicial proceedings), this in turn allows the party to negotiate freely while at the same time reserving the right where the negotiation is frustrated to proceed to the Court.
- The Mediation process is voluntary and furthermore the parties decide who is going to be the Mediator.
Even though the Mediator in the Mediation proceedings does not offer an opinion and makes no binding decisions, his evaluative role should not be regarded as worthless. The Mediator aims to find the cause of the problem and create an understanding between the parties in order for them to be able to move forward. All in all, the Mediation route is not only a risk-free option but also offers the opportunity to the parties to reach a “less traumatic resolution of disputes” while at the same time reserving their right if things turn the ‘wrong way’ to proceed with other Alternative Dispute Resolution (ADR) proceedings or with litigation.
The Cyprus Consumer Center for ADR provides for specific Mediation Rules for Consumers and Traders to settle their disputes. Our rules are based on the ICC 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.
€20 non-refundable filing fee, to file the dispute with the Center.
|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|
|50,001 – 100,000||320||1280|
|100,001 – 500,000||640||2560|
|500,001 and over||800||5120|
- All the above fees are exclusive of VAT and are payable prior to the initiation of the Mediation.
- The above fees are based on 8 hours of Mediation. For every extra hour required for Mediation 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
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.