The Draft Law on alternative Dispute Resolution procedure by way of mediation (a mediation process)
On March 11, 2010 the President of the Russian Federation Dmitry Medvedev introduced in the State Duma the draft of Federal law No. 341071-5 “On alternative dispute resolution procedure by way of mediation (a mediation process)” ( “the Draft law”). It is to be applicable from January 1, 2011.
Abroad mediation has long been known as one of the most preferable methods of dispute settlement. Russian Draft law was elaborated to create respective legal conditions for integration of the alternative dispute resolution procedure where a mediator participates. Mediation should facilitate business partnership relations, constitute ethics of business turnover and harmonize social relations.
Adoption of the Draft law will be the first considerable step to integrate the institute of mediation and therefore to increase the efficiency of civil disputes resolution in the
We would like to draw your attention to the essential provisions of the Draft law:
1 As determined in the Draft law a mediation process can be applied to settle civil disputes including those connected with entrepreneurship and other economic activities, as well as family and labour disputes. Cases when such disputes affect or may affect public interests or interests of third parties not involved in the mediation process can not be put under the mediation process.
2 To applicate a mediation process parties shall conclude a written agreement on application of the mediation process. The agreement can be concluded both before a dispute arises (a mediation clause), and after it has arisen (as well as after a trial or an arbitration has begun).
§ A mediation process begins from the date the parties conclude a written agreement on the mediation process. One of the parties sends an offer for mediation process to another party (or upon the party’s request an offer is sent by a mediator or by an organisation providing services on mediation). The offer shall include all the basic terms and shall put the order and time limit of the mediation process.
§ The time limit of the mediation process does not exceed 180 days, except if the mediation process is applied after a dispute has been submitted to the court or the arbitration court. In this case the time limit of the mediation process does not exceed 60 days.
§ The Draft law determines a minimum scope of requirements to mediators, yet the parties are entitled to determine additional requirements for a mediator settling a particular dispute.
§ To terminate a mediation process parties shall conclude a written mediation agreement. This agreement includes information about the parties, the subject of the dispute, the applied mediation process, the mediator, and agreed by the parties obligations and conditions and time limit for their fulfilment.
3 In the frameworks of the Draft law elaboration such legislative acts as the Civil Code of the Russian Federation, the Arbitrazh Procedure Code of the Russian Federation, the Civil Procedure Code of the Russian Federation, and the Federal Law “On arbitration courts in the Russian Federation” (draft law No. 341063-5 “On amending some legal acts of the Russian Federation in connection with adoption of the Federal law ”On alternative dispute resolution procedure by way of mediation (the mediation process)”) are to be amended as well in the following course:
§ Parties can settle a dispute by concluding an amicable agreement or using other conciliatory measures, including a mediation process if it does not contradict the federal laws.
§ The limitation period is interrupted if filing a claim in the procedure prescribed by the law, making a mediation agreement by the parties, as well as commitment of actions indicating recognition of a debt by a liable person.
§ If the parties represent an agreement on the mediation process in the course of a trial, the court can postpone the proceedings for a time limit not exceeding 60 days.
§ If the parties represent an agreement on the mediation process in the course of arbitral proceedings, the arbitral tribunal shall issue an order on the mediation process.
§ A dispute shall not be submitted to an arbitration court if a contract comprises a mediation clause.
The Draft law is currently considered by the State Duma, so the present edition may be amended. We will inform you on the progress of consideration of the document and on any substantial amendments which can be introduced.
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We hope the information above is helpful for you.
For more information on ALRUD Dispute resolution practice please visit our Web-site
or contact directly ALRUD Senior Partner Vassily Rudomino [email protected]
and Partner Alexander Zharskiy [email protected]
ALRUD Law Firm
Please note: We would like to draw your attention to the informational purposes of this newsletter and to the fact that it cannot be a ground for making a decision in each particular case.