New Mediation Act

The new Mediation Act came into force on 1 September 2012. Until now, mediation regulation has been absent in Czech law. However, this does not mean that mediation did not occur or was illegal; instead, there was merely no regulation governing mediation, which has raised a number of issues as to the duties of mediators, mediation effects, confidentiality of the mediation process and other related matters. This gap is to be filled by the approved bill from the date of its effect.

Mediation is a modern, alternative method of resolving disputes that is becoming more and more popular both in the Czech Republic and western countries. It is often used as the main way of reaching settlement in a variety of domains such as commercial or family matters. In simple terms, mediation is a process in which an independent and neutral third party – the mediator – assists the opposing parties in reaching a resolution of a dispute or complaint. The Act defines mediation as 'the process in resolving conflicts with the involvement of one or more mediators supporting the communication between the parties engaged in the conflict [...] so as to assist them in reaching an amicable resolution of their conflict by entering into a mediation agreement.'

The main benefits of mediation include, in particular, the fact that, unlike judicial proceedings or arbitration, the result of the conflict rests in the hands of the parties and the final agreement is an expression of their joint will and liability. Therefore, situations that are very often encountered in courtrooms or arbitration rooms in which one of the parties (and often both) leaves unsatisfied do not arise. Mediation is usually much faster and less formal than litigation or arbitration. The independent media-tor, as a kind of intermediary, facilitates the calming of troubled waters and establishing a dialogue where the parties are often unable to have a rational discussion, be it regarding a commercial or family dispute. Foreign experience shows that agreement between the parties can be reached in up to 75% cases.

In an ideal mediation, parties enter into an agreement to mediate with the mediator under which one or several dealings are held between the parties to the mediation and the mediator. The dealings result in a settlement in the form of mediation agreement. This is how the beginning and the (ideal) ending of mediation is defined by the new Act.

The Act does not regulate the performance and effects of any...