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Mediation is the dispute settlement method in which a third neutral person freely and voluntarily chosen by the parties intervenes in order to:
- Articulate the communication between the parties involved;
- Encourage the parties to reach a win-win settlement;
The mediator does not settle the dispute, but rather stimulates the parties to reach an agreement.
Mediation occurs without the intervention of lawyers and without the analysis of documentary evidence. The information transmitted to the mediator is confidential and can not be reused in other procedures. Therefore, the mediator may not act as arbitrator for the same case.
The main advantage of this mechanism is to preserve the business relationship once the dispute ends. When effective, mediation provides significant results in time saving, conservation of image and mobilization of financial resources.
Mediation may be engaged at any time by simple consent of the parties concerned. The judicial or arbitral proceedings in progress shall be suspended during the procedure. When the parties contractually foresee a compulsory mediation in case of dispute, the ritual must be observed.