Xəbərlər

The Law which is effective since 5 April 2019 describes mediation as following:

• a proceeding established to amicably solve the dispute between parties through a mediator (mediators);
• the parties can be legal entities and individuals (including individuals doing business without forming a legal entity) as well as administrative authorities assenting to the application of mediation proceeding;
• is voluntary in general. However, the parties to economic, family and labor-related disputes shall participate in the preliminary mediation sessionbefore applying to a court;
• applicable to civil, economic disputes (including disputes with a foreign element), family, labor and administrative disputes;
• implemented based on a contract on the application of mediation proceeding or by the Law through participation in the preliminary mediation session;
• start of the proceeding freezes the statute of limitation prescribed by law;
• the parties independently use their legal and processual rights as well as increase or decrease their claim, can dismiss the mediation at any stage of the proceeding provided that they participated in the initial mediation session;
• unless the parties opted otherwise it is a closed proceeding;
• shall not continue for a period longer than 30 days (can be extended for further 30 days depending on the complexity of a dispute). The specific period is established by the contract “on the application of mediation proceeding” taking into account the overall (statutory) period;
• the agreement resulting from the proceeding is a “settlement agreement”;
• is a paid service (a mediator or a mediator organization can on its initiative provide free mediation proceeding).
• The confidentiality of information obtained during mediation shall be protected by the participants of mediation.
• The Law also stipulates the qualifications for the individuals and organizations who wish to become a mediator, the terms of the implementation of a settlement agreement and the scope of mediation costs.

The provisions of the Law on the mandatory participation in the preliminary session shall become effective starting from 1 July 2020.  Read more>

• Mediator
• Individuals shall have the following qualifications to become a mediator:
• have a graduate degree;
• be older than 25;
• have at least three years of experience;
• graduate the preliminary course and obtain the certificate by the mediation authority.

A mediator can engage in any activity not prohibited by law.

A mediator cannot provide the parties to the mediation proceeding in which he acts as a mediator with legal and other services or represent them in a court or arbitration proceeding or act as an arbitrator in the proceeding with their participation.

Mediation organization

Another definition defined by the Law is a “mediation organization.” “Mediation organization” is a legal entity marketing mediation services, establishing the fees and costs for the services of mediators with whom it has an employment or civil contract, is facilitating negotiations during mediation, appointing mediators if allowed by the Law and the agreement of the parties and performs other actions required for effective performance of the mediators. 

The legal entities obtain the right to act as a mediation organization upon acceptance as a member of the Mediation Council. Legal entities shall have the following qualification to be selected as a member of the Council:

• have employment agreements with at least two mediators of whom one shall have a graduate legal degree;
• have rules on the evaluation of services by a mediator;
• have an office with at least two rooms.
• The rule of the mediation proceeding

The following shall be noted on the rule of the proceeding:

• the mediation proceeding is implemented based on the Law, the rule on implementation of the mediation, the internal rules of the mediation organization (if available) prepared based on the mediation rules, and the professional code of conduct of mediators;
• the mediator can meet the parties jointly or separately, cooperate with them, provide oral and written recommendations;
• the parties can attend the mediation proceeding directly or through their representatives;
• the parties can use the services of attorneys, translators, experts, and professionals in the relevant field.

Settlement agreement:

• is mandatory once executed by parties;
• if the settlement agreement (“the agreement”) does not specify another term it shall be implemented voluntarily within 10 days after execution;
• evasion of voluntary implementation shall implicate the liability defined in the agreement in accordance with the Civil Code of the Republic of Azerbaijan;
• if a party evades voluntary implementation the other party can apply to a notary or court for mandatory enforcement;
• is confirmed by the court or notary before mandatory implementation.

Mediation costs

Mediation costs include:

• the fee paid to mediator or mediation organization including the reward paid to the mediator or the mediation organization for a positive outcome of the proceeding;
• costs of the mediator or mediation organization including costs of travel, accommodation, and food.