Regulations on the recognition of successful mediation results of cases resolved under commercial mediation procedures

Currently, commercial mediation is a popular, flexible and effective method of dispute resolution, helping parties maintain a cooperative relationship and save costs. When the parties reach a mediation agreement, the recognition of such mediation result is an important step to ensure the legality and enforceability of this agreement. The following article will provide you with an overview of the conditions and procedures for recognizing commercial mediation results according to the provisions of Vietnamese law. 

1. Legal basis  

• Civil Procedure Code 2015; 

• Law on enforcement of civil judgments (amended, supplemented in 2014); 

• Decree No. 22/2017/ND-CP on commercial mediation; 

• Documents on guiding the implementation. 

2. Conditions for recognition of successful commercial mediation results 

 2.1 Form of settlement results according to commercial settlement procedures 

Pursuant to Decree 22/2017/ND-CP on commercial mediation, the results of the successful mediation are recorded in writing by the parties, including the following basic contents: 

• Grounds for conducting mediation; 

• Basic information of involved parties;

• Major circumstances of the dispute; 

• Agreement reached and solution; 

• Other contents as agreed upon by the parties in accordance with law. 

 A written record of successful mediation result must bear the signatures of the involved parties and the commercial mediator. 

2.2 Conditions for recognition of successful commercial mediation results  

• According to laws on commercial mediation  

A written record of successful mediation result shall be recognized in accordance with the civil procedure law. 

• According to laws on civil proceedings 

According to the provisions of the  Civil Procedure Code 2015, the result of successful mediation under commercial mediation procedures is considered a successful out-of-court mediation result and is recognized by the court when the conditions for recognizing successful out-of-court mediation results are met. Specifically, including: 

• • Conditions for considering the recognition of mediation result 

Pursuant to  Civil Procedure Code 2015, mediation result of the out-court case shall be considered if these conditions are met:1

• • It is a successful mediation result.

• • The case is mediated by a competent agency, organization or individual. 

For cases resolved under commercial mediation procedures, the agency performing the mediation is a mediation center or arbitration center that performs mediation activities established in accordance with the provisions of law.2

• • Mediation is carried out in accordance with the provisions of law on mediation. 

• • Recognition of successful mediation resutls.

To be recognized, an out-of-court settlement result must satisfy the following conditions: 

• Parties to the mediation agreement have sufficient civil capacity. 

• Parties of the mediation agreement are persons who have rights and obligations towards the mediation contents. If the successful mediation contents are related to rights and obligations of a third party, such mediation must be agreed by such party. 

• Either or both parties file an application to the Court for recognition of the mediation. 

• Contents of the successful mediation are totally voluntary and are not contrary to law, not contrary to social ethics nor for evasion of obligations towards the State or the third party. 

3. Procedures for recognition of mediation results according to commercial mediation procedures 

Step 1: Within 06 months from the date the parties reach a successful mediation agreement, one of the parties shall submit an application for recognition to the competent People’s Court. The dossier includes:3 

• Application for recognition of out-of-court mediation results according to the form issued under the provisions of law. 

• Written record of successful mediation results.

• Power of attorney/authorization letter for the authorized person to file the application (if any). 

Step 2: The Court will review the application. If it is complete and valid, it will issue a notice to the applicant requesting payment of civil settlement fees.4 After the applicant has paid the full fees, the Court will accept the application. 

Step 3: Within 15 days from the date of accepting the case, the court shall hold a session to consider the request for recognition of successful mediation results. 

Step 4: The Court decides whether to recognize or not to recognize the out-of-court mediation result. 

This Decision shall immediately take effect and shall not be appealed against according to appellate procedures and shall be enforced according to law regulations on enforcement of civil judgments.5

4. Benefits of recognizing successful mediation results 

Legality: Successful mediation results according to the commercial mediation procedure are recognized as having the same enforcement value as court judgments, are immediately effective and cannot be appealed or protested under appellate procedures. This helps the parties ensure their rights in case of disputes. 

Costs and time saving: Compared to resolving disputes through litigation, mediation helps parties save significant costs and time. 

Maintaining relationships: Mediation helps parties maintain cooperative relationships, avoiding tension and confrontation. 

5. Some notes 

The parties must ensure transparency and voluntariness in the mediation process, ensuring that the mediation between the parties is carried out in accordance with the provisions of law on mediation. 

The parties must choose a reputable and professional arbitration center or mediator to ensure the effectiveness of the mediation and the legality of the mediation results, in order to have a basis to request the Court to recognize the successful mediation results. 

In case the court refuses to recognize the mediation results, the parties can still file a lawsuit to resolve the dispute according to civil procedure. 

The procedure for recognizing out-of-court settlement results is an important legal tool, supporting the effective and legal enforcement of settlement agreements, especially for cases resolved under commercial mediation procedures. This not only promotes the development of dispute resolution by mediation but also contributes to reducing the burden on the court system, while bringing practical benefits to the parties involved in the dispute. 

(1) Article 416 of  Civil Procedure Code 2015 

(2) Article 18 of Decree 22/2017/ND-CP 

(3) Article 418 of  Civil Procedure Code 2015 

(4) Fees and charges for requesting recognition of settlement: 300,000 VND (unchanged even for civil matters related to valuable assets) 

(5) Clause 8 and 9, Article 419 of the Civil Procceding Code 2015 

See more:

1/ What foreign entities need to know when filing a business and commercial lawsuit in Vietnam?

2/ Accusing others of legal violations: when is it legitimate expression, and when does it infringe upon honor and reputation?

3/ Application of provisional urgent measures in civil proceedings

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