Arbitration and mediation
If you and your debtor agree on an alternative dispute solution, there are two options: arbitration and mediation or conciliation.
Agreeing to a private arbitral tribunal has advantages compared to regular legal proceedings:
- It’s quicker, as the courts are less occupied and there are usually no appeals
- It’s generally more cost-effective
- There is expertise in certain branches (e.g. contracting, engineering, graphical industry, metal industry)
- It’s an informal way of fact finding, where the processes and hearings are confidential
- There is no obligation to be represented by a lawyer (our legal collectors can handle arbitration procedures regardless of the outstanding amount)
However, agreeing to arbitration also means excluding the jurisdiction of the ordinary courts.
The second way of solving a dispute is by mediation or conciliation proceedings, which focus on finding the root cause of the dispute in order to find constructive agreements and solutions for both you and your debtor.
Mediation or conciliation is carried out by professional organisations like the Chambers of Industry and Commerce or by professional mediators. There are now increasingly more attorneys who specialise in mediation. Also, our legal collectors often act as mediators to try to solve disputes and create solutions or settlements. The new agreement is not a judgment, but a kind of contract.
(End of chapter 7 - Arbitration and mediation)