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Model contract clauses

Commercial disputes

Mediation

The parties agree that they will firstly attempt to resolve any disagreement, dispute or claim, arising out of or in relation to this contract, including questions related to a breach of the contract, its termination or invalidity, in mediation at the European Centre for Dispute Resolution, Ljubljana, in accordance with the ECDR Rules on mediation.

The parties undertake that pending completion of mediation proceedings none of them is allowed to initiate arbitral or court proceedings in regard to the disagreements, disputes or claims stated in the previous paragraph.

This contract clause guarantees that litigation in court is not admissible before the parties attempt to resolve the dispute in mediation. If a party filed a claim in court before the end of mediation, the Court would have rejected such a claim following an appeal of the opposing party in accordance with paragraph 2 of Article 16 of the Mediation in Civil and Commercial Matters Act.
When the mediation ends without an agreement on all the issues, a party may file a claim in arbitral or court proceedings. Article 13 of the Mediation in Civil and Commercial Matters Act determines when the mediation ends. In order to end mediation proceedings it suffices that one party signs a written declaration to stop the mediation proceedings and addresses it to the mediator and to the opposing party. The parties are therefore in charge of the duration of the mediation.
If the parties do not wish to prevent each other from filing claims in arbitration or court proceedings, they can omit the second paragraph of the clause. Mediation proceedings can run alongside arbitration or court proceedings.

Med-arb

The parties agree that they will firstly attempt to resolve any disagreement, dispute or claim, arising out of or in relation to this contract, including questions related to a breach of the contract, its termination or invalidity, in mediation at the European Centre for Dispute Resolution, Ljubljana, in accordance with the ECDR Rules on mediation.

The parties undertake that pending completion of mediation proceedings none of them is allowed to initiate arbitral or court proceedings in regard to the disagreements, disputes or claims stated in the previous paragraph.

The parties agree that if mediation fails, or if disagreement, dispute or claim is not consensually sorted out in mediation within 30 or 60 or 90 days from the commencement of mediation, the mediator assumes the role of an arbitrator and continues with the accelerated arbitration proceedings in accordance with the ECDR Arbitration and Med-arb procedure rules.

This clause provides for the fastest and cost-effective final resolution of a dispute, because the same person, who started as a mediator, continues to lead the proceedings by assuming a role of an arbitrator and renders an arbitral award in the arbitration proceedings within 6 months. The arbitral award has the same effects as a final judgment.

Mediation or arbitration

The parties agree that they will firstly attempt to resolve any disagreement, dispute or claim, arising out of or in relation to this contract, including questions related to a breach of the contract, its termination or invalidity, in mediation at the European Centre for Dispute Resolution, Ljubljana, in accordance with the ECDR Rules on mediation.

The parties undertake that pending completion of mediation proceedings none of them is allowed to initiate arbitral or court proceedings in regard to the disagreements, disputes or claims stated in the previous paragraph.

The parties agree that if mediation fails or if disagreement, dispute or claim is not consensually sorted out in mediation within 30 or 60 or 90 days from the commencement of mediation, the dispute will be referred to arbitration proceedings at the European Centre for Dispute Resolution, Ljubljana, and conducted in accordance with the ECDR Rules on accelerated arbitration.

This clause provides for a final resolution of all disputes between the parties. If the parties do not reach an agreement in mediation, the dispute is referred to the arbitration proceedings. The parties may agree on faster and cost-effective accelerated arbitration proceedings at the European Centre for Dispute Resolution, Ljubljana. Accelerated arbitration is normally moderated by a single arbitrator and has to be finished within 6 months from the commencement. The arbitrator is always a different person than the mediator.

Arbitration

Fast-track or accelerated arbitration

Any disagreement, dispute or claim, arising out of or in relation to this contract, including questions related to a breach of the contract, its termination or invalidity, shall be referred to and finally resolved in accelerated arbitration proceedings at the European Centre for Dispute Resolution, Ljubljana, in accordance with the ECDR Rules on arbitration proceedings.

This clause provides for a final settlement of all disputes between the parties in a fast arbitration proceedings, which is led by a single arbitrator and the arbitral award always has to be rendered within 6 months. The accelerated arbitration is less expensive for the parties.

Ordinary arbitration

Any disagreement, dispute or claim, arising out of or in relation to this contract, including questions related to a breach of the contract, its termination or invalidity, shall be referred to and finally resolved in arbitration at the European Centre for Dispute Resolution, Ljubljana, in accordance with the ECDR Rules on arbitration proceedings.

This clause assures a final and binding resolution of a dispute either in front of a single arbitrator or arbitral senate. The parties opt for the arbitral senate in disputes of high complexity, which require especially skilled arbitrators.

International arbitration

Any disagreement, dispute or claim, arising out of or in relation to this contract, including questions related to a breach of the contract, its termination or invalidity, shall be referred to and finally resolved in (optionally: accelerated) arbitration at the European Centre for Dispute Resolution, Ljubljana, in accordance with the ECDR Rules on arbitration proceedings. The governing law of the contract shall be the substantive law of ___Country_____. The language to be used in the proceedings shall be ____Language_________.

In disputes with presence of international element, where one party has its seat or place of habitual residence abroad, it is important, that an arbitration clause defines the applicable law and the language of the proceedings.

 

Employment disputes

Mediation

Parties agree that they will firstly attempt to resolve any disagreement, dispute or claim, arising out of or in relation to the employment contract, including questions related to a breach of the contract, its termination or invalidity, in mediation at the European Centre for Dispute Resolution, Ljubljana, in accordance with the ECDR Rules on mediation.

Parties undertake that pending completion of mediation proceedings none of them is allowed to initiate arbitral or court proceedings with regard to the disagreements, disputes or claims stated in the previous paragraph.

It shall be deemed, if a special regulation determines the time within which an action in relation to employment rights must be brought before the court, this period starts to run from the date of unsuccessfully completed mediation. 

 

The Employment Relationship Act does not permit labour disputes to be settled in arbitration proceedings, unless such provision is expressly included in the branch collective employment agreement. Currently valid collective agreements do not provide for arbitration as dispute resolution method, consequently only mediation is possible in employment disputes.  Paragraph 2 of Article 200 of the Employment Relationship Act defines that if an employer within 8 working days from the receipt of the written request of the employee fails to fulfil its obligations arising from the employment relationship or the breach is not remedied, the employee may, within 30 days from the expiry of the deadline for fulfilment of obligations or remedy breaches by the employer, seek judicial protection before the competent labour court. Paragraph 1 of Article 201 of The Employment Relationship Act provides that if the mediation is not successfully completed within a period of 90 days from the agreement on mediation, the employee may within the next 30 days following unsuccessful mediation invoke judicial protection before the labour court.


Evropski center za reševanje sporov

European Centre for Dispute Resolution

Tomšičeva ulica 6
1000 Ljubljana

+386 8 20 56 590

info@ecdr.si