Why do leaders choose mediation over litigation?

Leadership is the ability to inspire and build confidence in others. This is the reason why leaders value relationships and emotional intelligence. Successful leaders create environments where people want to belong. These environments to thrive, though, need methods to be maintained in the events of a conflict. Mediation provides a great opportunity for this.

Advantages of mediation:

The parties, by their own free will, participate in the procedure, the purpose of which is to maintain and restore their relations.

As per Art. 6 (2) of the Mediation Act: “Within a mediation process, all questions shall be resolved by mutual agreement between the parties.” The parties may reach an agreement or not. In case of an agreement, their relationship would be preserved. But in scenarios when the parties do not reach an agreement, mediation is an indicator of their good will and willingness to solve their problems together. Moreover, the parties often reach an agreement at a later stage, owing it to the mediation procedure..

The parties determine their priorities and interests in accordance with their desires and values.

While, on the other hand, in court proceedings the court is guided solely by the statutory rights and obligations of the parties, as well as by the evidence collected on the case..

The parties determine the outcome of the mediation procedure.

If they choose to conclude an agreement, they determine the content of the agreement themselves, as well as their rights and obligations under it. Therefore, there is no losing side in mediation. The mediator assists the parties in exploring the possibilities and assessing the advantages and disadvantages of the case, while a judgment is a necessary result of a court proceeding, the content of which is determined by the judge and always has a winning and losing side.

Confidential, cheaper and faster than court proceedings.

The participants in the mediation procedure are obliged to keep a secret for all circumstances, facts and documents, which they got familiar with in the course of the procedure. The mediator shall not be interrogated as a witness on those circumstances, entrusted to him by the participants and relevant to the resolution of the dispute, except with the explicit consent of the participant, who has entrusted the information.On the other hand, the principle of court proceedings is that court cases are being considered in open court hearings, which most of the times are public, meaning that everyone has the right to attend. In the mediation procedure the parties themselves determine the timing of the mediation meetings.

Subject to mediation may be a significant part of the court proceedings:

Commercial and administrative disputes

Disputes between merchants on commercial transactions, membership in companies and other disputes between natural and/or legal persons, including in cases with a cross-border element.

Civil, customer and labour disputes

Any disputes between individuals, family, household, real estate, obligations, property and non-property disputes, tenancy disputes. Employment contracts – termination, compensations, remuneration, work experience, etc.

Criminal Law Disputes


Mediation may also be conducted in cases provided in the Criminal Procedure Code.

The agreement

The content and form of the agreement reached in the mediation procedure shall be determined by the parties. The form can be oral, written and notarized. In the agreement, the parties may provide for liability in cases of failure to fulfil their obligations.

The agreement only binds the parties, involved in the dispute, and cannot oppose to persons who did not participate in the procedure. The agreement binds the parties only for what they have agreed to.

Executive power

An agreement on a legal dispute reached in a mediation procedure has the power of a court settlement and is subject to approval by the district courts in the country. The court approves the agreement after its confirmation by the parties, if it does not contradict the law and good morals.


Now would you prefer mediation?…

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