About this service
Resolving a commercial dispute through mediation is often faster and less costly than litigation, but the outcome depends on knowing the process precisely: when mediation starts, what rights each party holds, and how the result must be formalised. Articles 2, 7, 8 and 9 of the Georgian Law on Mediation assemble this cycle in sequence — from definitions to commencement, from conduct to termination. Our service accompanies companies along this entire route and anticipates procedural risks early.
Private and court mediation — the foundational definitions
Article 2 builds the terminological foundation. Mediation is a process which, regardless of its name, enables two or more parties, with the assistance of a mediator, to attempt to end a dispute by mutual agreement. Court mediation is carried out after a claim has been filed with a court, under the procedure established by the civil procedure legislation, where the court transfers the case to a mediator; private mediation is carried out on the parties' initiative, on the basis of an agreement on mediation, without any transfer of the case by a court. The participants are the mediator, the parties, their representatives and a third person; a party may be a natural person, a legal person or an organisation that is not a legal person — the route is directly available to companies. The result — a mediated settlement — is a written document whose performance is mandatory.
Commencement: precondition, moment and the effect on courts
Article 7 provides that the precondition for starting mediation is an agreement on mediation or a statutory basis under which a court or another authorised body, at the parties' request, transfers the case to a mediator. Mediation is deemed commenced from the moment of the application to the mediator or the transfer of the case, and, at a party's request, the mediator issues a confirming document. Where the parties have agreed not to apply to a court or arbitration until a defined term or the occurrence of a circumstance, those bodies will not examine the dispute until the conditions stipulated in the agreement are fulfilled — except where the claimant confirms that it will suffer irreparable harm without review. A respondent must raise such an agreement before the defence deadline expires. Applying to a court is not treated as refusal of the agreement, and each party may withdraw at any stage.
Conduct: the mediator's role and the parties' control
Article 8 obliges the mediator, before mediation begins, to explain to the parties the principles governing the process, the mediator's role, the parties' rights — including the right to participate through representatives — their duties, the possible outcomes, the enforcement rules of the mediated settlement, and the procedure and terms of the mediator's remuneration. The parties may agree on a procedure not established by the law; absent agreement, the mediator determines the procedure so as to resolve the dispute effectively. The duration of mediation is not limited unless the agreement on mediation or the law provides otherwise, and the parties must be afforded sufficient time and opportunity. The mediator ensures equality between the parties, may conduct the process through joint or individual communication, but cannot itself decide the dispute — its function is to support the parties' free, independent and informed decision-making. With the parties' consent, the mediator may even propose the terms of a settlement.
Termination and formalising the mediated settlement
Article 9 sets out the grounds of termination: mediation is considered concluded where the parties agree in writing to end the dispute by mutual accord; where they agree in writing to discontinue the mediation; where a party declares in writing its refusal to continue participating; where the period allotted for mediation expires; or where, after consultation with the parties, the mediator declares that continuing the mediation would be unreasonable and unjustifiable. The fixation of the result is equally precise: the settlement is drafted by the parties or their representatives, with the mediator's possible assistance; it is made in writing and signed by the parties and the mediator. At a party's request, the mediator also issues a document confirming the completion of the mediation.
Frequently asked questions
These are the questions parties raise most often about starting and running a mediation, and each answer comes directly from the statutory text.
When is mediation deemed to have started?
From the moment the parties, or one of them, apply to the mediator or the case is transferred to a mediator. At a party's request, the mediator issues a confirming document, later important evidence in contested situations.
Is there a time limit on mediation?
The law does not limit the duration unless the agreement on mediation or the law provides otherwise. The parties may set their own term, and the expiry of that term is one of the statutory grounds of termination.
Can a party leave mediation and go to court?
Yes — a party may refuse to continue participating at any stage. Applying to a court or arbitration is not regarded as a refusal of the agreement on mediation or as a termination of the mediation that has begun.
Who signs the mediated settlement?
The settlement is made in writing and is signed by the parties and by the mediator. Its drafting is ensured by the parties or their representatives, and the mediator may assist in the process.
How We Help on Legal.ge
Our team stands beside your company at every stage of mediation: we assess whether your dispute suits mediation and design the process; we draft the agreement on mediation so that its conditions can be successfully invoked in court; we represent you in the process or help you select the mediator and your representative; and, once a settlement is reached, we prepare a mediated settlement that every necessary party signs and whose performance is mandatory. Contact us and receive a concrete plan for your dispute.