When choosing the method of settling financial disputes resulting from a conflict and permanent payment stoppage by the contractor, we should consider the nature of both the conflict and the issues underlying it, as well as the costs it generates.
The above analysed, the most frequently chosen and recommended dispute settling method is mediation.
“Mediation” is a process – regardless of its name or definition – in which both parties to the dispute call for a third party’s assistance to reach an agreement defining the final solution of the dispute in line with the interest of both parties, irrespective of whether the process was started by the parties or was proposed or imposed by the court.
Mediation can be a cost- and time- effective method for non- court settling of disputes in civil business cases due to its adaptability the individual needs of both parties.
Article 10 of the Civil Proceedings Code orders courts at every stage of the case to aim at settling a dispute in a conciliatory way. In business cases, Article 479 of the Civil Proceedings Code imposes the obligation to settle financial disputes before the court in the form of agreement.
Following the legal regulations quoted above, as well as general arbitration principles, the Mediation and Notification Department was created within the structures of ICA. Its purpose is to execute financial claims, resulting mostly from default in invoice payment, at the pre-court stage. The Department is a specialized team comprising lawyers-mediators and an executor.The mediator in a dispute looks for a ground common to the disputing companies and suggests possible solutions. Effective mediation means also solving conflicts among several companies interlinked with mutual financial claims. Thus, the contacts between the interested parties can be saved and the chain-reaction of claim execution can be prevented.
Unlike the court, the mediator’s interest lies in the debt being paid; the court cares only about the decision as it is not its responsibility to look for a settlement of mutual claims