Conciliation (mediation)

In November 2009 the Conciliation Act was passed in Estonia. Conciliation procedure is a voluntary process in which an impartial mediator provides for communication between parties in order to find suitable solutions to matters of argument. The mediator may present to parties his/her own proposals regarding conciliation circumstances and proceedings (Section 1(2) of the Conciliation Act).

The ultimate goal of conciliation procedure is reaching a mutual consensus. The main strategy is cooperation; the key factor is mutual understanding.

Possible areas of application:

  • disputes between companies on various contractual matters
  • internal corporate disputes (e.g. disputes between managers and employees or disputes between different departments)
  • financial rehabilitation proceedings - disputes between debtors and creditors
  • property disputes (e.g. division of joint property)

Benefits of conciliation procedure:

  • it is considerably faster and less formal than court proceedings
  • it is less expensive than court proceedings
  • it is confidential (deliberation in camera)
  • cooperation of experts in various professional fields (legal and financial counsellors, communication experts)
  • individual approach (besides legal arguments all other relevant circumstances are considered)
  • more beneficial solution (a win-win situation) for all parties
  • more accurate performance due to the fact that parties remain satisfied with the decision.

Unknown author: ‘Internal peace and satisfaction are not the result of the absence of conflicts, but of the ability to settle them!'