New law mandates Romanians to attempt mediation before going to court

Individuals and members of the judiciary intending to go to court will first have to participate in informal conflict mediation meetings from October 1, when new amendments to the law come into force.

The lawsuits already in court will also be obligated to take part in the meetings, the advantage in solving the conflict through mediation, in this case, being that the stamp tax will be returned in most cases. Starting from January 2013, the law becomes even more “restrictive” because proof of attempting mediation procedures will be required before beginning a court case to settle disputes. "Before addressing the court or the investigating authorities, parts or any of them are required to attempt conflict settlement through mediation,” the new law cites. In Romania, processes, including commercial disputes, can last for years. Cristian Parvan, general secretary of the Association of Businessmen in Romania, cites the frequent legislative changes as a factor in the length of cases. The Supreme Court of Magistrate's 2011 report on justice shows a big increase in the value of stock cases (new cases "inherited" entered minus the settled ones) from just under EUR 450,000 (RON 1.5 million ) to EUR 2.37 million in 2011. If the claimants do not appear at mediation they can still go to court, but the judge will be able to punish them with a fine for failing to attempt to settle the case out of court. The mediation legislation applies in civil disputes that have a value of RON 50,000 plus and does not concern cases where a decision of enforceable insolvency proceedings has been made. Ioana Toader, ioana.toader@romania-insider.com