Slovakia
In your jurisdiction, are there any formal ADR procedures available for resolving commercial disputes other than litigating (or arbitrating) to a final hearing?
In Slovakia, various alternative dispute resolution methods have been recognized and promoted as ways to resolve commercial disputes without resorting to litigation or arbitration.
Mediation is a voluntary process where a neutral third party (mediator) assists parties in reaching a mutually acceptable agreement. The Slovak Chamber of Mediators and the Ministry of Justice have been involved in promoting and regulating mediation in various types of disputes, including commercial matters.
There is also an ADR procedure for consumer matters (between a consumer and a seller) arising out of or relating to a consumer contract.
Various ADR institutions, both private and public, have been established in Slovakia to provide ADR services for commercial disputes. These institutions facilitate negotiations, mediations, and other forms of ADR on a voluntary basis.
Does engaging in ADR have any effect on potential or existing litigation or arbitration?
Initiation of a mediation has the same effect on the limitation period as the initiation of litigation.
In addition as ADR is a voluntary process, if parties engage in ADR and do not reach a satisfactory resolution, they can still proceed to litigation or arbitration, if they choose. The option to pursue litigation or arbitration remains unaffected by involvement in ADR. Unless there’s a prior agreement among the parties to engage in ADR before initiating legal action, the process of litigation or arbitration can begin and run in parallel with the pursuit of ADR. The Slovak courts are legally obliged to recommend the parties to engage in ADR, however such recommendation is not binding on the parties.
Is ADR compulsory and if so are there any consequences if a party fails to engage in ADR? If it is not compulsory are there any plans for this to change?
ADR remains voluntary in Slovakia with the exception of ADR in consumer matters. Upon receipt of a request from a consumer submitted to the relevant ADR institution, the seller is required to participate in the process under penalty of a fine. The process is voluntary for the consumer. Currently there are no plans to make ADR compulsory in general.
Can the parties agree, in advance of any potential dispute, to engage in ADR?
Yes, parties can agree in advance to engage in alternative dispute resolution methods in the event of a potential dispute. Such agreements are often included in contracts or other legal documents and are commonly referred to as “ADR clauses” or “ADR agreements.” These clauses outline the parties’ commitment to attempting ADR before resorting to litigation or arbitration. Breach of the ADR clause does not affect the right of the party to initiate the litigation – such as the claim may be lodged before the court even though there is an ADR agreement/ADR clause. The penalty for breaching the ADR clause is therefore only the general right to the damage compensation or the contractual penalty (if agreed between the parties in the case).
When does ADR generally take place?
ADR takes place at various stages during the course of a dispute, and the timing can vary depending on the nature of the dispute, the ADR method chosen, and the preferences of the parties involved.
Is ADR subject to without prejudice privilege and/or confidential? If not, is there any other means to protect confidential information?
The mediator and the persons involved in the mediation are obliged, unless the parties agree otherwise, to maintain the confidentiality of all facts which have come to their knowledge in connection with the mediation. Confidentiality applies without the need to enter into a special Non-disclosure agreement (NDA).
In consumer alternative dispute resolution, the ADR entity is obliged to maintain confidentiality of all facts of which they become aware during the dispute resolution. They may only be relieved of this obligation by the party to the dispute in whose interest they are bound by the obligation of confidentiality.
Generally, it is common to include a confidentiality clause in contracts binding the parties themselves.
Does the output from ADR create precedents?
In Slovakia, the legal system operates without the establishment of legal precedents. Higher-instance court decisions are usually respected as supportive arguments. Due to the fact that ADR is private, it cannot create any form of a precedent.
Who bears the costs of ADR?
The costs of ADR are normally borne by each of the parties to the dispute separately. However, parties may agree on a different split of costs.
Is your jurisdiction subject to any specific rules for cross border ADR?
ADR of cross-border disputes is governed by Directive 2008/52/EC of the European Parliament and of the Council of 21 May 2008 on certain aspects of mediation in civil and commercial matters, Regulation (EU) No 524/2013 of the European Parliament and of the Council of May 21, 2013 on online dispute resolution for consumer disputes and amending Regulation (EC) No 2006/2004 and Directive 2009/22/EC (Regulation on consumer ODR) and other EU legislation. There are no special rules in Slovakia for cross border ADR. Slovakia is not a party to The United Nations Convention on International Settlement Agreements Resulting from Mediation (Singapore Convention).
Are there any particularly unusual features of ADR in your jurisdiction that you are aware are different to other jurisdictions?
The final agreement reached by the parties before the mediator in the form of the notarial deed or approved by the court or the arbitration body is a legally enforceable title and parties can initiate the enforcement proceeding.
A mediator must be registered in the Register of Mediators. Conditions for registration include full legal capacity, second-degree university education, no criminal record, completion of the mediator’s training and passing the mediator’s professional examination. In consumer ARD, the ADR facility providing ADR services must also be registered with the Ministry of Justice. The candidate must prove having been actively involved in resolving disputes between consumers and sellers for at least one year prior to the application for registration, having sufficient technical and administrative equipment, having sufficient professional, organizational and staff capacity to provide alternative dispute resolution for domestic disputes as well as cross-border disputes, etc.
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