The FAI Mediation Process

WHAT IS MEDIATION?

Who is involved: PARTIES & LAWYERS

MORE INFORMATION:

Mediation is an alternative dispute resolution method in which a neutral third party, a mediator, assists the parties (two or several) in settling their disputes amicably.

 

The mediator does not make decisions regarding the dispute. The mediator assists the parties in their negotiations.  The outcome of a successful mediation is a settlement agreement, which is binding on the parties as an agreement.

 

The advantages of FAI Mediation are, for instance:

  • flexibility
  • cost-effectiveness
  • confidentiality
  • speed

 

The Arbitration Institute of the Finland Chamber of Commerce (FAI) administers domestic and international mediations under the FAI Mediation Rules .

More information on FAI Mediation is available here and in the FAI Mediation Guidelines.

Mediation is voluntary and requires the consent of all parties.

MORE INFO:

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.

You can view the FAI model mediation clause here.

If the parties fail to settle the dispute in mediation, or do not continue with the mediation, they may seek to finally settle the dispute in court  or through arbitration as the parties may agree.

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Costs of FAI Mediation include:

  • the mediator’s fee/expenses and
  • the FAI Administrative Fee/expenses.

The parties share the FAI Mediation costs equally, unless otherwise agreed.

More information on the determination of the FAI Mediation costs can be found here. Detailed information on the FAI Mediation costs can also be found in the FAI Mediation Guidelines.

MORE INFO:

The FAI administers domestic and international mediations under the FAI Mediation Rules.

HOW TO START A MEDIATION?

Who is involved: FAI, PARTIES & LAWYERS

To start a mediation, a party or parties must file a Request for Mediation with the FAI.

PAYMENT:

A party or parties must pay a Filing Fee  when filing a Request for Mediation. The Filing Fee is normally non-refundable.

Information about the Filing Fee can be found here.

Payment is made to the FAI by bank transfer, the details of which can be found here.

  

MORE INFO:

If you wish, you may use the Request for Mediation form, which can be found here. More info on how to initiate a mediation can be found here.

If the Request for Mediation is not filed with the FAI on behalf of all the parties to the matter, the other party or parties not having requested mediation must file an Answer to the Request for Mediation. In the Answer, the party must state whether it agrees to FAI Mediation.

TIMEFRAME:

Provide an Answer within 15 days of receipt of the Request for Mediation.

MORE INFO:

If you wish, you may use the Answer form, which can be found here.

FAI Mediation is conducted by one mediator, unless otherwise agreed by the parties. If the parties fail to jointly nominate the mediator, the FAI appoints the mediator. The FAI confirms all mediators.

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Information on the appointment and confirmation of the mediator can be found here and in the FAI Mediation Guidelines.

The FAI will order the parties to pay an advance on costs to cover the costs of the mediation.

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The advance on costs will cover the estimated amount of costs of the FAI Mediation.

More information on the advance on costs is available here and in the FAI Mediation Guidelines.

The FAI sends the case file to the mediator once the mediator is confirmed and once the advance on costs is fully paid.

WHAT HAPPENS DURING THE MEDIATION PROCEEDINGS?

Who is involved: MEDIATOR, PARTIES & LAWYERS

After consulting with the parties, the mediator shall draft and communicate a written note to the parties on how the mediation shall be conducted.

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More information on conducting the mediation is available here and in the FAI Mediation Guidelines

In the mediation session, the mediator assists the parties in finding an amicable solution by facilitating discussions between the parties.

MORE INFO:

More information on the conduct of the mediation is available here and in the FAI Mediation Guidelines.

The result of a successful mediation is a settlement agreement that is binding on the parties as an agreement. If the settlement is not reached, or the mediation is otherwise terminated, the parties may submit the dispute to be resolved in court litigation or arbitration.

MORE INFO:

More information on termination of mediation is available here and in the FAI Mediation Guidelines.

The settlement agreement is binding on the parties. If necessary, the settlement agreement may be confirmed in an arbitral award.

MORE INFO:

More information on confirming settlement in an arbitral award is available here.

The FAI determines the costs of the mediation before the mediation is terminated.

MORE INFO:

More information aboutthe determination of the costs of the mediation is available here. Detailed information on the costs of the mediation is also available in the FAI Mediation Guidelines.

WHAT HAPPENS AFTER THE MEDIATION?

Who is involved: FAI, MEDIATOR & PARTIES

The parties share the FAI Mediation costs equally, unless otherwise agreed. The parties are responsible for their own other expenses in relation to the mediation, such as their counsel fees, as they agree.

PAYMENT:

After the termination of the FAI Mediation, the FAI will pay the costs of the mediation from the advance on costs.

The FAI shall reimburse the parties for any amount the parties have paid as an advance on costs that exceeds the total costs of the mediation.

If the advance on costs does not cover the total costs of the mediation, the FAI and/or the mediator will send an invoice for the remaining amount to the parties.

TIMEFRAME:

Invoiced fees must be paidwithin 30 days from the termination of the mediation.

The settlement agreement confirmed in an arbitral award or by a court can be enforced through a court, if necessary.

Legends of the icons:

  • Timeframe
  • Payment information
  • More information

  • Filing documents
  • Participation needed