Out-Law News 1 min. read

Commission asks EU countries to explain Mediation Directive inaction


Eight EU countries must explain to the European Commission how they will implement cross-border mediation laws, the Commission has said.

The UK had been listed by the Commission as one of the countries that had been sent a Commission letter about its failure to implement the Mediation Directive or notify the Commission of its implementation.

A Ministry of Justice (MoJ) spokesman told OUT-LAW.COM, though, that this was down to "a bureaucratic error".

"The Directive was implemented in full in time for the deadline," he said.

The UK is one of nine countries that received a 'letter of formal notice', requesting information about why it had not informed the Commission that it has put the necessary rules in place.

The countries have two months to respond. The other countries were the Czech Republic, Spain, France, Cyprus, Luxembourg, the Netherlands, Finland and Slovakia.

The European Union Mediation Directive was adopted on 21 May 2008. Member states were given three years to put national laws in place making sure that cross-border mediated agreements could be enforced.

The Directive applies when parties in different European countries who are involved in a civil or commercial dispute voluntarily agree to settle their differences with the help of an impartial mediator.

EU member states have to ensure that agreements resulting from mediation can be enforced, providing that the agreement does not go against that country's own laws.

They also have to make sure that any limitation periods, which only allow court proceedings to be raised within a certain amount of time after a dispute has arisen, will not run while any mediation proceedings are taking place.

Any information arising out of the mediation process must remain confidential.

Civil and commercial mediation agreements could already be enforced in the UK.

New laws implementing the confidentiality and limitation requirements came into force on 20 May 2011 for any agreements entered into on or after that date.

"Mediation is an important alternative to going to court in cross-border disputes and can help parties find an amicable settlement. It saves time, money and spares parties involved in already emotional family cases the additional trauma of going to court," said Vice-President Viviane Reding, EU Commissioner for Justice, in a statement.

"I call on the remaining nine Member States to urgently finalise transposition so that citizens and businesses can fully enjoy their rights."

The European Commission can take legal action against member states that do not correctly transpose EU law or fail to notify that they have passed national measures to implement EU rules.

Time wasted by not using mediation is estimated at an average of between 331 days and 446 extra days in the EU, with extra legal costs ranging from €12,471 to €13,738 per case, according to EU figures.

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