Global Debts Management - Debt recovery

Alternative dispute resolution

Alternative dispute resolutionAlternative resolution of disputes (ARD) includes resolution procedures and techniques of conflicts which are not in the scope of the judicial process, are means by which the parties in conflict can reach an amicable settlement of the problems they deal with.

The mediation is the fastest way to solve the conflict, reduces conflict resolution costs. By means of mediation, the parties are trying to reach an amicable settlement, with the help of a third specialized person acting as MEDIATOR, in conditions of neutrality, impartiality, confidentiality and with the free consent of the parties. (Art. 1 paragraph 1 from LAW NO. 192/2006). The mediatorĀ“s task is to facilitate reaching a solution that satisfies both parties. Mediators do not impose solutions, but they are responsible for the parties to reach a compromise on their own.

The arbitration is a method of solving disputes outside the Courts and is very close to legal procedure. The arbitration represents a procedure within which the parties chose one or more individuals to whom they present the case in order to obtain a compulsory decision. The parties, after a formal convention are subject to the decision of the third party named arbitrator, after a judicial procedure, out of which results a final and enforceable decision. It permits parties to decide the law or legal system that will rule both the contract which expresses their will and the way of resolution of possible disputes.

Is the alternative method of conflict resolution, by which the parties engaged in conflict try to reach an agreement to resolve the disagreements, by using communication techniques, applied in a direct dialog. Negotiation is used in any area of human activity which contains communication forms. It can be said that it is the phase and the method within the mediation process in which the participant parties realize agreement concerning the procedural and content, phase and process objectives; the negotiation is used in formulating basic rules after which is developed the process; is also used in formulating the content and the way of using instruments within the process, in establishing the program and the deadlines of mediation session, the order in which parties speak, priorities given in addressing their issues, needs, interests, formulation and content, in the construction of potential and final solutions, in estblishing obligations and terms which refer to the implementation of mediated agreemnt, etc. the conditions of relative equality of power, where decisions can only be taken only by agreement between the parties.

This procedure can delay decisions sometimes irreversible effects on the parties, in a society where strict procedures do nothing but hinder a dispute. This phase is not necessarily imposed on the parties and is not excluded that the parties resort optionally to conciliation or mediation.