Mediation is a voluntary and confidential process in which a neutral third party, a mediator, assists the parties (two or several) in settling their disputes amicably and/or in avoiding disputes. Mediation also helps to maintain business and personal relationships.

Mediation is often characterized as a cost-effective, fast, flexible, straightforward, and user-friendly way of settling or avoiding disputes.

The mediator’s role is to assist the parties in finding an amicable solution by facilitating discussions, exchange of information, and negotiations between the parties. In facilitative mediation, the mediator does not make decisions or rulings as to the merits of the case.


Why FAI Mediation?

The Mediation Rules have been prepared to provide a flexible, straightforward and user-friendly framework for facilitative mediation. The Arbitration Institute of the Finland Chamber of Commerce (“FAI”) administers mediations under the Mediation Rules (“FAI Mediation”).

Characteristics of FAI Mediation:

Flexibility. The mediation process is regulated only lightly in order to provide the parties and the mediator with the flexibility to tailor the process to the needs of each particular situation.

Voluntary process. FAI Mediation is a voluntary process. The parties can agree to use FAI Mediation before or after the dispute has arisen. The FAI recommends the use of FAI Model Mediation Clause.

Confidentiality. All parties, the mediator, the FAI and any other person participating in the proceedings shall keep the existence and outcome of FAI Mediation confidential.

Speed. In practice, mediation proceedings are often completed in one or two mediation sessions with some preparatory work before the mediation. Typically, a mediation session lasts one day.

Reasonable Costs. Since mediation is typically a speedy process, the costs of mediation are reasonable. The parties pay the costs of FAI Mediation in equal shares, unless otherwise agreed.

Broad Scope of application. All businesses and industries may benefit from mediation. Mediation is suitable for the resolution and avoidance of both domestic and international conflicts and disputes regardless of their size and complexity. Also, the mediation process allows parties to consider the conflict from a broader perspective than merely focusing on the legal aspects of the dispute.

Connection to FAI Arbitration. The parties may agree to use the arbitration services provided by the FAI if they fail to reach a full settlement in the FAI Mediation or if they want to confirm a settlement in an arbitral award.


How to Agree on FAI Mediation?

The Parties may agree on mediation by including a mediation clause in their contract. The parties may also agree on mediation after a dispute has arisen between them. The FAI recommends the use of the FAI Model Mediation Clause.