Mediation

Arbitration

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In the context of mediation proceedings, parties are actively and responsibly involved in finding a solution to their dispute that meets their respective interests. The mediator, appointed by or on behalf of the parties by the DIS, acts as a neutral third party and is solely responsible for the proceedings. The mediator provides the parties with different procedural options and works towards reaching an amicable and satisfactory resolution of the dispute.

Parties can already agree on mediation as a dispute resolution method when concluding the contract by including the DIS mediation clause in their contract. Parties can also agree on mediation proceedings after a dispute has already arisen.

Advantages of Mediation

Mediation offers numerous advantages:

  • A confidential, quick, flexible and cost-efficient dispute resolution method for parties wishing to resolve their disputes amicably.
  • Mediation offers the parties a highly controllable form of dispute resolution since the parties retain the decision-making authority throughout the entire proceedings.
  • Mediation enables the parties to resolve their disputes without irreparably damaging their business relationships. The disputing parties usually continue to cooperate after a successful mediation.
  • A successful mediation usually results in an agreement between the parties, which is  binding under private law. If mediation is combined with arbitration, an agreement can also be recorded in the form of an arbitral award on agreed terms.
  • If parties are unable to reach an amicable settlement, they can still turn to arbitration or state court proceedings to resolve their dispute.

DIS Mediation Proceedings

The DIS has offered Mediation Rules for the business community since 2010. 

To commence a mediation under the DIS Mediation Rules, the party wishing to initiate the proceedings (applicant) shall send a written request to the other party (opponent). The request shall contain the names and contact details of the parties and their counsel. The request shall also contain a short summary of the dispute, the facts and circumstances which gave rise to the dispute, the asserted claims and, if possible, the amount in dispute.

The mediation proceedings begin once the DIS Main Secretariat has received a copy of the request and payment of DIS procedural fee.  

The parties may freely choose and nominate a mediator. If the parties fail to nominate a mediator within one month, each party may request the nomination of a mediator by the Appointing Committee of the DIS. The DIS may also propose names of potential mediators to any party upon request.

After the mediator has accepted the appointment, the case file is transmitted to him or her. Consequently, the mediator discusses the procedure with the parties to help them reach an agreement. However, the mediator does not intervene in the proceedings with his/her own proposals for solutions.

Mediation proceedings are terminated:

  • if the parties have come to an agreement and settled their dispute,
  • by declaration of one party, provided that at least one mediation session or no mediation session within two months after the confirmation of the mediator has taken place,  
  • if a mediator is not nominated within the set time limit and neither party requests the DIS to nominate a mediator,
  • the mediator declares the mediation to be terminated by written declaration to the parties, or
  • the mediation is not conducted for a period of three months after the commencement of the proceedings.

Costs of Mediation Proceedings

The costs of mediation are based on the Schedule of Costs for DIS Mediation Proceedings.

According to the Schedule of Costs, the DIS procedural fee is €250. The fee for nomination of a mediator by the DIS is also €250. The hourly rate of a mediator is €300, unless the parties and the mediator agree otherwise. The fees are subject to the applicable VAT.

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