Dispute mediation

Why mediation?

Mediation is an alternative to a trial.

Mediation has many advantages compared to the trial. In general, the mediation session can be reached much faster than the main hearing of the trial. Mediation is cheaper and more flexible for the parties than a full trial. If an amicable settlement is reached, the appeal phase will be omitted. The settlements are often based on the needs and interests of the parties, which are specifically focused on the future, while the trial resolves what has happened in the past.

The most important thing in mediation, however, is that the procedure is based on the parties' right to self-determination. This means, for example, that the parties themselves are allowed to influence the course of mediation and that the parties themselves determine the terms of any mediation. It is also essential that the parties are listened to and understood in mediation and that the parties have a slightly better understanding of each other's perspectives.

According to statistics and experiences, between 70% and 80% of mediation ends in a settlement. In addition, the potential for a settlement will increase in the future, as the parties have often already had a constructive dialogue. Disputes in mediation rarely end up being decided by a judge.

Where can mediation take place?

Civil and application matters may be settled in public courts. Mediation is usually carried out by the district court, but it is also possible to initiate mediation in a matter appealed to the court of appeal.

There are other alternative dispute resolution procedures for many different categories of matters. For example, consumer counselling and the Consumer Dispute Board deal with disputes related to consumer protection, and there is a separate mediation procedure for criminal matters. In such a case, the court may declare the settlement concluded enforceable.

What kind of disputes may be settled by mediation?

Such civil and petitionary matters may be subject to mediation that could also be heard by a court. The dispute may concern, for example, an agreement, a matter of inheritance, compensation for damage, property dispute, employment dispute, neighbourhood dispute or room rental dispute.

Also disputes related to child custody, right of access and child maintenance may be settled by mediation. You can read more about mediation related to children here.

Mediation is voluntary, which is why commencement of mediation requires that all the parties to the dispute con-sent to it. Mediation also requires that the matter is amenable to mediation and that a settlement is appropriate in view of the claims of the parties. The court decides whether mediation is to be commenced.

What does mediation cost?

A court fee is charged for mediation in the same manner as for any other matter dealt with by the court, but the fee is lower than the fee charged for a trial in a civil case. You can read more about the fees here.

The parties may engage the services of a legal counsel if they so wish. In that case, the parties must pay for the counsel's fee and other expenses themselves instead of claiming them from the opposing party. Legal aid may be granted to a party on the basis of his or her financial position.

If the mediator with the parties' consent uses an expert assistant in the mediation, the parties shall pay for the ex-pert's fee and other expenses. However, in the mediation of custody disputes, the use of an expert assistant assigned by the municipality is free of charge for the parents.

How to proceed?

The parties may either together or separately request at the district court that mediation be commenced. The written application, which may be freely formulated, must include the names and contact information of the parties to the mediation as well as a short description of the dispute.

The parties to a dispute may also request mediation in a case already subject to legal proceedings before the court. The judge may also suggest mediation. If mediation is commenced, the mediator must be some other judge than the one who dealt with the case in the trial. In this case, no separate fee is charged for the mediation.

Mediation procedure

Successful mediation requires that both parties have a genuine desire to reach a settlement in the case.

The mediator shall be a judge who has undergone court mediation training. It is not his or her job to resolve the dispute, but to help the parties themselves to find a solution to their disputes that everyone can accept. Mediation serves the needs of the parties and thus the agreement reached is not directly based on the application of the law.

If special expertise is needed in the matter to be settled, the mediator may, with the consent of the parties, use an expert assistant in the mediation. For example, in mediation of custody disputes, the mediator is usually assisted by a psychologist or social worker who is familiar with parenting and the development of the child.

The mediation session must be held as soon as possible. Usually, an entire day is reserved for mediation. The general goal is to complete the process from start to finish in one day. It is, however, possible that the mediation process continues for several days.

The mediation process consists of the following stages: commencement, establishment of facts, negotiation and con-clusion. During the establishment of facts, the objective of the mediator is to clarify the background of the dispute, the reasons for the dispute and the parties' interests in the case. Mainly, mediation consists of discussions conducted between all the parties present, but if need be, the mediator may also discuss with the parties in private.

Mediation is usually public, but it is rare that there are any outsiders present. The parties may, however, request that mediation be conducted without any public present. Private discussions between the mediator and a party are al-ways confidential and closed for the public. No minutes will be drawn up on mediation and discussions will not oth-erwise be recorded.

Settlement may be confirmed

If the parties reach a settlement during the mediation, the mediator may, at their request, confirm the settlement. In that case, the settlement constitutes an enforceable decision, by virtue of which for example an agreed payment, damages or maintenance payment may be recovered through enforcement measures. If the settlement is not con-firmed, it is deemed an ordinary agreement that is legally binding on the parties.

If no settlement is reached

A mediation process shall be concluded if one of the parties no longer wishes to continue it. The mediator may also conclude the process, if he or she notices that a settlement cannot be reached.

If court proceedings were initiated in the matter before the mediation, they shall be continued. Mediation will not slow the proceedings in court proceedings, but – if there is no settlement – the matter will return to its so-called normal place to wait for the trial. In court proceedings, the matter is handled by a different judge than in mediation. The mediator shall not inform the judge dealing with the matter in court of the content of the mediation. Circumstances put forward by a party during the mediation in order to reach a settlement must not be invoked before the court.

Further information on court mediation is available at district courts .

Out-of-court mediation

If the parties have reached an agreement during out-of-court mediation, the settlement may, upon application, be confirmed as enforceable in the district court. In that case, for example an agreed compensation may be recovered through enforcement measures, if necessary. Mediation provided by the Finnish Bar Association and other corresponding procedures constitute out-of-court mediation. A settlement reached in mediation in criminal cases may also be confirmed as enforceable insofar as the settlement concerns a civil matter (damages).

An agreement made in out-of-court mediation cannot, as a rule, be confirmed by the district court if the matter concerns child custody, right of access or child maintenance. Agreements of this kind are made and confirmed within the social welfare services with the child welfare officer present.