Professional Documents
Culture Documents
SCIENCES
BABES-BOLYAI UNIVERSITY
CLUJ-NAPOCA, 2011
INTRODUCTION
The judiciary is traditionally regarded as one of the three state powers. Hence it is the
duty of the state to organize a justice system, build the necessary legal and tangible
infrastructure, recruit judges and make the services available to the public at a small
cost.
In the wave of liberalization and privatization of public services that swept the western
world, as well as the so-called emerging markets in the late twentieth century,
alternatives to state judicial systems have been introduced. The United Kingdom has
been one of the driving forces of such reforms in Europe; the motto of reform was
"access to justice"1, using alternative dispute resolution methods (ADR).
ADR has proven itself to save time and money, and in many instances, to help the
parties to restore their business relationships and avoid the acrimony of extended
litigation. Indeed, many provincial law societies now require lawyers, as a matter of
professional conduct, to consider the use of ADR for every dispute, and if appropriate,
to inform the client of ADR options.
ADR is becoming a best practice in supply chains where parties agree from the outset
in their contracts to forego court-based litigation and to rely instead on ADR. Parties
can be located in the same jurisdiction or province, or they can be in different
jurisdictions and still use ADR because they opt in by contract to a set of rules for
dispute settlement.
The common formal methods of ADR which are used by the public and businesses
include mediation, arbitration, adjudication, conciliation, negotiation, early neutral
evaluation and expert determination.
Of all of these processes, mediation and arbitration are most common and are well
established and sit parallel to the legal and judicial framework in England and Wales
and also in Romania.
1
ADR in England and Wales: A Successful Case of Public Private Partnership, Loukas A Mistelis, 2006,
pg 2
2
ROMANIA
MEDIATION
In Romania, the first law on mediation was adopted in 2006, respectively Law no.192
relative to mediation and the organization of the mediator profession. In 2009, this law
was modified and completed by Law no. 370. In 2008, the Council of Mediation has
modified the Standard relative to the training of mediators, which was approved in
2007 (Council of Mediation, 2008).
In addition, the Council of Mediation has adopted the Code of Ethics and Professional
Deontology of Mediators (Council of Mediation, 2007). The provisions of the Law no.
192/2006 modified and completed by the Law no. 370/2009 refer to the profession of
mediator, the organization of the activity of mediators, the rights and responsibilities of
mediators, the mediation procedure, the mediation of family conflicts and of criminal
causes.
According to the Article 1 of the Law no. 192/2006 modified and completed by the
Law no. 370/2009, mediation is defined as a way to solve the conflicts on a
conciliatory base, with the support of a specialized third party as mediator, within a
framework of neutrality, impartiality, and confidentiality and with the free consent of
the parties.2
This approach is in line with the content of the Directive 2008/52/EC. However, the
definition provided by the Romanian law states the condition of neutrality of the third
party that provides assistance to those in dispute.
The mediation process is based on the cooperation of the parties to the dispute. The
mediator cannot impose a solution relative to the dispute among parties.
The relevance of the Law no. 192/2006 modified and completed by the Law no.
370/2009, to the commercial disputes, is based on Article 2. According to this article,
the provisions are also applicable to conflicts in consumer protection, when the
consumer claims a damage following the purchase of defective goods or services; the
non-observance of contractual clauses or warranties provided; the existence of abusive
clauses within the contracts concluded between consumers and economic operators; the
2
http://www.dreptonline.ro/legislatie/lege_mediere_profesia_mediator_192_2006.ph
p
3
infringement of other rights stipulated by the national or EU legislation in the area of
consumer protection.
According to Law no. 370/2009, only the person that has obtained the quality of
authorized mediator may practice the profession of mediator. In principle, the
profession of mediator is compatible with the practice of other activities or
professions.3
Article 12 of the Law no. 192/2006 modified and completed by the Law no. 370/2009
stipulates that authorized mediators are registered in the Table of Mediators, drawn up
by the Council of Mediation, and published in the Official Journal of Romania, Part I.
In Romania, Council of Mediation organizes the mediation activity. This body is an
autonomous legal person of public interest.
Among the main responsibilities of the council range the following promotion of the
mediation activity and representation of the interests of the authorized mediators;
development of training standards relative to mediation based on the international best
practices; authorization of the initial and continuous professional training, as well as of
the specialization training; authorization of mediators; supervision of the compliance
with the training standards in the field of mediation; development of the Code of Ethics
and Professional Deontology; making proposals to improve regulation of mediation.
The general principles to be applied by mediators are the following: the freedom of
parties to apply to mediation and to make a decision; nondiscrimination; independence,
neutrality and impartiality of the mediator; trust and moral integrity; professional
secret, confidentiality; conflict of interests; fee setting; responsibility of mediators;
incompatibilities; quality of the mediation process.
The prevalence of commercial mediation is high, primarily because the costs involved
in such a procedure are low compared with those incurred in court trials. Also,
confidentiality and maintaining or strengthening business relationships are other
3
http://www.avocatnet.ro/content/articles/id_17637/Legea-370-2009-pentru-
modificarea-si-completarea-Legii-nr-192-2006-privind-medierea-si-organizarea-
profesiei-de-mediator.html
4
reasons why mediation records a real success on the current Romanian business market
(the mediator keeps secret the information it obtains about the parties during mediation
and it will not disclosed it without the consent of both parties. Also, the discussions that
are taking place during the mediation process are confidential and can not be used
thereafter without the consent of the parties or in some cases expressly provided by
law).
In this area, that mediation may intervene in conflicts which arise in connection with
the execution, interpretation and severance of commercial contracts. Also, if occurring
in electronic commerce disputes, mediation can be applied in particular e-commerce
stores that have been in disputes with customers about delivery orders of various
products.
No matter in what area mediation can be used, in the current Romanian law mediation
is recognized as an effective method of resolving conflicts, the courts having an
important role in promoting it. I refer in particular to the Law no. 202/2010 regarding
some measures to accelerate the settlement process, which contains provisions relating
to mediation by which it changes and augments the civil and criminal procedure codes.
• hourly fee or a percentage for the mediator; is generally considered that a mediation
session lasts about an hour, and for a mediation in several sessions, the first session is
covered up to an hour and a half, i.e. 90 minutes. If the disputes relate to goods of a
certain amount (jointly agreed by both parties), it can also be negotiated a percentage
fee of the value accepted in addition to the hourly fee.
• Although rare it is possible that during the proceedings an expert opinion to be
sought, and its price it is covered on both sides
• Basic principle of mediation is that the payment shall be made equally by those
involved and most often it is estimated (or proposed) an initial time, which is paid, and
in the end the difference is paid for the exceeded time
• Mediation session shall be paid regardless of outcome, whether or not an agreement is
achieved.
ARBITRATION
Along with mediation, arbitration offers a safe and convenient alternative for civil and
commercial dispute resolution. In Romania arbitration is governed by the Code of Civil
Procedure, Book IV “On arbitration”; (Art. 340-370) and is a form of private justice
(Book IV “On Arbitration”; amended by Law no. 59/1993) and enables the
participating parties to conclude on contracts which stipulate that any dispute arising
out of or in connection with those documents (contracts / pre-contracts), including also
the conclusion, execution or their abolition, to be settled by Arbitration.
Arbitration offers a modern and efficient alternative means of dispute resolution that
allows:
- Freedom for the parties involved in the conflict to choose the referee (judge), fact that
can not be done in the traditional judicial system
- The parties, under the Convention compromise, have the opportunity to choose one or
more judges for a ruling in arbitration
5
- A quick resolution of disputes between the parties within 5 months, compared to
cumbersome mechanisms of judicial system that can last for years
- Parties may decide the law or legal system that will govern the contract which
expresses their will and way of solving any disputes.
Both mediation (regulated by Law no. 192/2006) and arbitration are voluntary dispute
resolution procedures. Therefore, civil procedural law recognizes the autonomy of will
of the parties in a dispute subject to arbitration (the freedom to determine the
organization and conduct of arbitration), a similar situation in this respect being also
the mediation procedure.
Regarding the possibility of using electronic means in solving disputes, I mention that
the Romanian International Commercial Arbitration Court at the Chamber of
Commerce and Industry has established an electronic medium for an accelerated
arbitration. Thus, applicants have access to a user-friendly electronic environment,
providing on-line completion of the procedures. The Technical Secretariat of the
Arbitration Court makes available to interested parties a mobile office in order to fill in
the applications electronically and to load the supporting documents in the system at no
extra costs. Thus consumption of time and labor resources of the involved parties is
minimized.
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ENGLAND & WALES
OMBUDSMEN
An ombudsman is a person who has been appointed to look into complaints about an
organization. Using an ombudsman is a way of trying to resolve a complaint without
going to court.
There are a number of ombudsmen:
The Parliamentary and Health Service Ombudsman who investigates
complaints about government departments and certain other public bodies.
They can also look into complaints about NHS hospitals or community health
services
The Local Government Ombudsman who investigates complaints about local
councils and some other local organizations
The Financial Ombudsman Service
The European Ombudsman
The Legal Ombudsman
The Property Ombudsman
The Housing Ombudsman
The Prisons and Probation Ombudsman.
The Energy Supply Ombudsman.
REGULATORS
4
http://www.adviceguide.org.uk/index/your_rights/civil_rights/how_to_use_an_ombu
dsman.htm
7
A Regulator is defined as a body which has been established by Act of Parliament, but
which operates at arm's length from government and which has one or more of the
following powers: inspection; referral; advice to a third party; licensing; accreditation;
or enforcement (e.g. The Consumer Council for Water, The Drinking Water
Inspectorate etc).
NEUTRAL EVALUATION
With this option an independent person looks at the claims made by each side and gives
an opinion, which is non-binding.
The opinion can also be the basis for an agreement between both sides. The evaluator is
often chosen because of their expertise in the subject matter of the disagreement (e.g. a
lawyer with litigation experience).
EXPERT DETERMINATION
CONCILIATION
Conciliation is a less formal form of arbitration. This process does not require an
existence of any prior agreement. Any party can request the other party to appoint a
conciliator.
Parties may submit statements to the conciliator describing the general nature of the
dispute and the points at issue. Each party sends a copy of the statement to the other.
The conciliator may request further details, may ask to meet the parties, or
communicate with the parties orally or in writing. Parties may even submit suggestions
for the settlement of the dispute to the conciliator.
Neutral fact finding is used when a dispute involves an issue requiring expertise, and
that issue is a stumbling block to settlement, the parties may agree on a neutral third-
party to decide that issue. The parties may make the neutral's decision binding or not.
Neutral fact finding can also resolve disputes involving a business entity's internal
affairs, like employment discrimination, where the company needs someone outside the
company to investigate the charges.
8
the same person acts as mediator and arbitrator; in others a different neutral person is
brought in to arbitrate.
The idea of med-arb is to combine the advantages of both mediation and arbitration. If
it is possible, both sides will agree a settlement through mediation. If they can’t agree,
they both know that in the next stage an arbitrator will make a final decision for them.
MEDIATION
In England, mediation has grown rapidly in response to the need to find an effective
option to resolve disputes without lawyers, thus eliminating adversarial nature that a
trial produces. The 80s but especially the 90s were the development period of
mediation in the UK, the primary role being taken by the legal reforms (1996 - English
Arbitration Act, 1999 - Civil Procedure Rules), both recognizing and promoting the
need for alternative dispute resolution methods to reduce the cost and duration of court
trials.
The step change delivered as a result of Lord Woolf’s review of civil justice and his
subsequent Access to Justice Reports of 1995 and 1996 (on 26 July 1996, Lord Woolf
published his Access to Justice Report 1996 in which he “...identified a number of
principles which the civil justice system should meet in order to ensure access to
justice”.), signalled a significant change in the handling of civil court cases. Under
these changes the courts were given a clearly defined role in providing information
about ADR and encouraging its use in appropriate cases. Lord Woolf’s Final Report
stated “the court will encourage the use of ADR at case management conferences and
pre-trial reviews, and will take into account whether the parties have unreasonably
refused to try ADR or behaved unreasonably in the course of ADR.”5
Lord Woolf’s vision for a greater push towards the use of ADR, along with the
introduction of judicial case management was enshrined formally into the court process
through the Civil Justice reforms of 1999. The Civil Procedure Act of 1997 provided
for the establishment of a new code in the form of Civil Procedure Rules (CPR)
governing the practice and procedure to be followed in the Court of Appeal, the High
Court and the county courts.
The Woolf Report on Access to Justice played a pivotal role in raising the profile of
ADR in England.
The Civil Procedure Rules have been amended accordingly to ensure all litigants have
exhausted all methods of resolving and have considered Alternative Dispute Resolution
before actual court proceedings are issued. Pre-action protocols are designed to
facilitate early settlement of the dispute. In addition to this judges have been given
powers to impose on both parties to try mediation if they have not already complied
with the C P R requirements.
The new Civil Procedure Rules indicate clearly the desire of those who are responsible
for the administration of civil justice to bring about radical change in litigation culture.
ADR has been also a feature of Government policy over the last decade, building on
the momentum of the Lord Woolf reforms, Court of Appeal judgments and on the
growth of mediation in the commercial sector as a means of resolving high value
disputes.
5
http://www.justice.gov.uk/docs/solving-disputes-county-courts.pdf
9
In 2001, the Government introduced the ADR Pledge, which was a significant step
forward in terms of support for ADR as it made a commitment that all Government
departments and their agencies would use alternative forms of dispute resolution,
where appropriate and with the consent of the other party in dispute. The ADR Pledge
is currently being renewed and extended, by encouraging both local authorities and
businesses to make a similar commitment to using ADR in appropriate cases. 6
Another key area of activity has been in the development of court-based mediation. In
2004 it was set up the National Mediation Helpline to form the basis of a national
mediation service for all county courts, served by panels of commercial mediation
providers, accredited by the Civil Mediation Council (CMC).
There is currently no authorized regulator or regulatory body for ADR in England and
Wales. Training and accreditation of mediators is provided by a number of
organizations, among whom are the Centre for Effective Dispute Resolution (www.
cedr.co.uk), the ADR Group (www.adrgroup.co.uk), and In Place of Strife
(www.mediate.co.uk).
Mediators are independent and impartial, and their aim is to help the parties reach an
agreement; they do not make decisions for the parties. Other common features of
mediation are: it is voluntary, private, and confidential (unless both parties agree, issues
discussed during mediation cannot be used in court).
The types of conflicts, according to British legislation, which can be addressed through
mediation, are:
Civil conflicts
Family conflicts - In England and Wales, participation in family mediation
is voluntary and is undertaken to resolve disputes arising in the context of
divorce or separation under the provisions of domestic legislation. Family
mediation is at present nearly always conducted face-to-face, and mediators
consider it beneficial for people to reach agreement together. In family
disputes in England and Wales there is no contract in which a family
mediation clause could be inserted. Under the law of England and Wales
couples who marry are not subject to a matrimonial property contract. The
Family Mediation Council was set up in 2007 to harmonize standards for
family mediation in the UK. The council approves family mediation bodies
which meet its requirements. Family mediators who are trained and
accredited by bodies approved by the council are listed on the government-
funded Family Mediation Helpline website.
Commercial/business conflicts - The Civil Mediation Council is the national
body which represents and promotes civil and commercial mediation. At the
end of 2005 it started piloting an accreditation scheme for civil and
commercial mediation providers.
Community conflicts - There is currently no national umbrella organization
for community mediation providers. Mediation UK, which was the national
body for over 120 community mediation services, went into voluntary
liquidation in October 2006.
Labour/Workplace conflicts (The ACAS - Advisory, Conciliation and
Arbitration Service, Code of Practice in Disciplinary and Grievance
Procedures provides for best practice in the area of employer/employee
disputes. ACAS provides an independent and impartial service to prevent
6
Idem
10
and resolve disputes between employers and employees. ACAS conciliators
have a statutory duty to promote settlements in a wide range of employment
rights complaints which have been made, or could be made to an
employment tribunal.
Victim-offender conflicts
Mediation normally takes place at a neutral venue, where the mediator and the parties
establish the issues, the options and negotiate an agreement. The exact length and
proceedings of the mediation depend on the issues at stake: for instance family or
neighborhood mediation requires specific approaches. Commercial and civil disputes
normally involve a meeting of the parties and their solicitors – although often each
party is in a different room and the mediator ‘shuttles’ between the two rooms.
The general principle that applies in civil courts in England and Wales is that the
‘loser’ pays the other side’s costs as well as their own, except in the family courts,
where each side normally pays their own costs. In alternative dispute resolution, the
general principle is that each side pays their own costs.
Mediation costs can vary, depending on the type of mediation. For example:
If one side is eligible for legal aid, the Community Legal Service fund will pay for the
cost of the mediation or other form of alternative dispute resolution. Sometimes, the
organization one is complaining about pays all the costs because they are the
financially stronger side.
Ombudsman schemes tend to be the least expensive to use, as they are free to the
person complaining. Community mediation doesn’t cost much either. It usually
involves face- to-face meetings, so only the travel and other expenses should be paid,
but it may be able to get these back as part of a mediated agreement if both sides agree
to this.
It is not obligatory to seek legal advice when using alternative dispute resolution, but it
is advisable. It is also advisable to ensure that any ADR provider used has accreditation
and carries indemnity insurance.
The resolution achieved through ADR can take the form of a decision or agreement by
the parties, depending on the form of ADR used. Generally, methods such as
mediation, conciliation and neutral evaluation are designed as aids to agreement.
Expert determination, adjudication and arbitration schemes produce decisions though
these may or may not be binding according to the circumstances and methods used.
Some Ombudsmen make binding decisions, others make recommendations.
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ARBITRATION
Arbitration is the most formal of the methods used to settle disputes without using the
courts. The relevant law on arbitration can be found in the Arbitration Act 1996. The
Act contains provisions concerning:
the requirements for arbitration agreements,
very detailed requirements concerning arbitration panels and appointment of
arbitrators,
jurisdiction of the arbitral tribunal,
arbitral proceedings, including legal representation, evidence, appointment of
experts and advisers,
provisions on arbitral awards – their content and biding force,
appeals (very limited).
The Arbitration Act 1996 states that the object of arbitration is to obtain the fair
resolution of disputes by an impartial tribunal without unnecessary delay or expense. It
further states that it is an agreement to submit to arbitration present or future disputes
whether they are contractual or not. The distinguishing feature of arbitration can be
summarized as the decision of a third party, the arbitrator, is binding on the parties. It
also differs from the litigation as both parties involved in the dispute can agree on who
can decide the outcome of the dispute as well as the procedure they would like to adopt
to come to that decision taking into account any statutory provisions.
The agreement to go to arbitration can be made by the parties at any time. It can be
written into a business contract by what is called a Scott v Avery clause or the parties
may just agree on arbitration when a dispute arises.
The parties can agree the number of arbitrators who will hear their dispute. It could be
three, two or just one person. The parties will normally appoint someone who is an
expert in their particular area of business. There is also the Institute of Arbitrators who
will provide trained arbitrators to parties who wish to settle a dispute.
The actual procedure to be followed in any arbitration hearing is left to the parties to
decide. Therefore, arbitration hearings can take many forms. The parties can decide
on a paper arbitration, which means the parties submit everything to the arbitrator in
writing, who will then read everything and make a decision. However the parties can
also have a hearing at which they appear and give evidence and witnesses may be
called.
The decision made by the arbitrator is called an award and is legally binding on the
parties.
12
Speed - Settling a dispute using ADR is usually much quicker than using the
court system.
Expertise - A specialist from within a particular trade or industry is able to
suggest a reasonable solution which will be acceptable to the parties involved.
A judge is unlikely to have specialist knowledge, other then in the law.
Privacy - ADR is conducted in private, therefore avoiding publicity from the
media. The public are also unable to attend.
Parties may be able to remain on good terms - The aim of ADR is to find a
compromise solution which is acceptable to both parties. Court proceedings
create a winner and a loser. Using ADR to settle a dispute means businesses
can remain on good terms and continue to trade with each other once their
dispute is resolved.
Costs to the Parties - All forms of ADR are far cheaper than taking a case to
court.
Costs to the State - Every case resolved using ADR saves the Government
money.
Saving of Court Time - Every case solved through ADR stops the courts being
over burdened with cases.
The online dispute resolution services (ODR) are another mechanism offered by
numerous English organizations to facilitate the resolution of disputes between parties.
Below are only a few examples of such organizations:
Dispute Doctor provides an online mediation service carried out by a
barrister mediator based in Bristol. The parties can web conference by
Skype, return agreements and pay online. There is also a handy Useful
Resources section which contains Guides to Mediation. The areas
covered are divorce and separation (finances), employment and
organizational conflict (i.e. conflict arising out of personal or
professional relationships). Mediations are standard facilitative
mediations, carried out by an accredited mediator. For more difficult
disputes, the mediator employs a problem solving technique called
CLEAR which is a seven step process aimed at helping the parties to
step outside of the problem and look at the issues in a structured and
holistic way.
The Mediation Room run by Graham Ross, a mediator and retired
solicitor with over 20 years experience in IT and the law. He is a
member of the United Nations Expert Panel on Online Dispute
Resolution. He provides a service “where technology meets dispute
resolution enabling people to have their disputes resolved at less cost, in
time and money, and with less damage to underlying business or
personal relationships than by pursuing through the courts or by
arbitration.” The online service provides an online messaging and blind
bidding process, with additional message areas in which client and
lawyer can communicate securely.
E-mediator offers: - A bullet point guide to how and why mediation
works in more than 80% of cases
- A collection of articles written by Consensus Panel members and
guests
- ADR Glossary explaining common terms and acronyms
- Case Studies related to cases settled successfully using
traditional and online mediation
13
- Extracts from the Civil Procedure Rules that relate to ADR.
2. IDRS
IDRS provides dispute resolution services to individuals and businesses. It is a
subsidiary of the Chartered Institute of Arbitrators (CIArb). IDRS administers
independent conciliation, mediation, adjudication and arbitration schemes to settle
complaints and disputes involving individual companies, members of trade
associations, professional bodies, and their customers.
3. CEDR
Centre for Effective Dispute Resolution works with governments, public and private
sector organizations to develop schemes for alternative dispute resolution. It provides
training courses and consultancy services in the area of ADR. It prides itself on being
material in bringing mediation into the mainstream of the English civil justice system,
but its outreach is international as well.
The Mission of the CMC is to influence the policies and practices of the
UK government and other governments, as well as the professions and
the public, increasingly to adopt mediation as an effective means of
dispute resolution.
15
RESOURCES
http://www.civilmediation.org/about-cmc
http://www.cedr.com/news/archive/Individual_member.pdf
http://www.businessandmoney.ro/inpage/aplicabilitatea-institutiei-
medierii-sistemul-drept-romanesc/
http://webarchive.nationalarchives.gov.uk/
+/http://www.dca.gov.uk/civil/final/overview.htm
http://www.idrs.ltd.uk/?p=7&lang=e
http://arno.unimaas.nl/show.cgi?fid=3609
http://www.justice.gov.uk/news/docs/annual-pledge-report-2006-07.pdf
http://www.justice.gov.uk/docs/solving-disputes-county-courts.pdf
http://www.adrnow.org.uk/go/Section_1.html
http://www.juriscom.net/uni/mem/17/odr01.pdf
http://www.avocatnet.ro/content/forum
%7CdisplayTopicPage/topicID_22126/.html
http://www.dreptonline.ro/legislatie/lege_mediere_profesia_mediator_19
2_2006.php
http://www.avocatnet.ro/content/articles/id_17637/Legea-370-2009-
pentru-modificarea-si-completarea-Legii-nr-192-2006-privind-medierea-
si-organizarea-profesiei-de-mediator.html
http://www.adviceguide.org.uk/index/your_rights/civil_rights/how_to_use
_an_ombudsman.htm
http://ec.europa.eu/civiljustice/adr/adr_rom_ro.htm
Civil Justice in England and Wales-beyond the courts (Research Project), Russ Taylor,
2009
ADR in England and Wales: A Successful Case of Public Private Partnership, Loukas
A Mistelis, 2006, pg 2
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