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Alternative Dispute Resolution - Success Stories


Alternative Dispute Resolution - Success Story Aug 2006 (pdf)

Story From The Field

Center for Mediation in Banja Luka, Bosnia and Herzegovina

The first mediation pilot was launched in late March 2004 through an agreement between IFC and the 1st Instance Court in Banja Luka. Since then, the judges in the court have selected mostly commercial and labour cases, and contacted the parties involved to invite them to mediation. Parties in approximately 430 cases have so far agreed to mediation, and the number continues to grow daily. “I honestly welcome any form of dispute resolution that would lift some of the burden from the court system. While lessening the load of the court, mediation also achieves faster and cheaper dispute resolution and helps maintain good relations between the parties, which is often not the case with the court procedure" noted Branka Skoko, a trained mediator and a judge in the 1st Instance Court.




Resolving Three Year Disputes in Two Hours

The first successful mediation resolved was a commercial dispute that has been stuck in court litigation for over three years. Even though the amount in question was substantial, it was the costs of the procedure and its absurd duration that threatened to permanently disrupt any prospect of future cooperation between the two companies. «In addition to court fees and litigation expenses – which were substantial considering that we had 16 hearings – we suffered further losses as a result of constant engagement of our employees on collecting evidence to substantiate our claims. Mediation has radically shortened the procedure and saved us a lot of money” noted Miroslav Jaslar, manager of Autoservis centar, one of the parties that reached agreement through mediation.

Jaslar points out that the preparatory work conducted by the mediator was critical, and stresses the importance of the role of mediator as a neutral third party, channeling the discussion, without attempting to influence the outcome. «Only thanks to open communication, without impeding legal restrictions and formalities were we able to reach a mutually satisfactory solution in less than two hours» said Jaslar.

The most important aspect of mediation may lay in the fact that both firms expressed interest for future cooperation. “Mutually beneficial settlement that we reached has made it possible for both parties to feel comfortable with the agreement, helping avoid the point beyond which our future cooperation would be impossible” added Jaslar.

At the moment, 7 mediators are engaged at the Center (former judges and lawyers), all of them members of the Association of Mediators in Bosnia and Herzegovina that underwent a training program implemented by IFC and the Canadian Institute for Conflict Resolution.



Testimonials

“We are very keen to promote this efficient way of resolving business disputes in Southeast Europe. This is an important part of our strategy of promoting a vibrant private sector and of improving the overall business climate in the countries through both investment and technical assistance activities.” Edward Nassim, IFC’s Vice President for Europe, Africa, and the Middle East.

"The Law on Mediation, which was prepared with the support of IFC, is part of the overall judicial reform of the Country. We expect mediation to contribute towards achievement of two goals: citizens and business to get one more avenue to justice, and to decrease the backlog of cases in the courts." Meri Mladenovska-Gjorgjievska, former Minister of Justice, FYR Macedonia.


"The court procedure is much more formal. In mediation, parties use a casual manner through a discussion to resolve their dispute by themselves. Both parties obtain, in an optimal and fair way, along with reduction of time and costs, a satisfactory solution." Dragoslav Ognjanovic a lawyer from Belgrade, Serbia.


A businessman who attended a IFC focus group discussion told of how four disputes involving his companies were resolved in just 3 hours through mediation: “The mediation process resulted in nearly $1.88 million being freed up for my business - so in my case, this quick turn around time in resolution of my disputes, literally translated into millions of dollars, which I am now able to re-invest in my business.”








Supported by the Government of the Netherlands

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