Settlement Negotiation

What is the difference between settlement and mediation?

In mediation, a neutral third party helps you agree. In settlement negotiation, your lawyer aggressively advocates for your best interest to reach a deal directly with the other side.

Can we settle after the judge has issued a verdict?

Technically, yes. Even at the enforcement stage, parties can agree on a settlement (e.g., payment schedule) to stop forced auctioning of property, subject to Enforcement Bureau procedures.

Is the settlement confidential?

Generally, yes. Settlement agreements often include non-disclosure clauses. However, if approved by a court, the court order itself is a public record unless the case was closed/sealed.

Do I get my court fees back if we settle?

Yes, Georgian law encourages settlements by refunding a portion of the state duty (court fee) paid, depending on at which stage (first instance, appeal, etc.) the settlement is reached.

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Settlement Negotiation is a legal process aimed at resolving an ongoing dispute based on mutual agreement between the parties, without waiting for a court judgment. Unlike mediation, where a neutral third party facilitates the process, in settlement negotiations, lawyers directly represent their clients' interests and strive to achieve the most favorable terms through compromise. In Georgia, court litigation often lasts for years and involves significant financial costs, making amicable settlement an increasingly popular option. A settlement can be reached at any stage of the dispute — before filing a lawsuit, during court proceedings, or even at the enforcement stage. The involvement of a qualified lawyer in this process is vital to draft a "Settlement Act" (Settlement Agreement) that is legally sound, enforceable, and fully protects your rights from future risks. Legal.ge offers access to experienced negotiators capable of resolving complex conflicts peacefully and effectively.

What Does Settlement Negotiation Cover?

This service is comprehensive and includes strategic planning, communication, and legal drafting. Specialists from Legal.ge offer:

  • Assessment of Legal Positions: The lawyer analyzes your chances in court and determines acceptable terms for you (Best Alternative to a Negotiated Agreement - BATNA).
  • Conducting Negotiations: Direct communication with the opposing party or their representatives, neutralizing emotional tensions, and focusing on rational proposals.
  • Drafting the Settlement Agreement: Preparing a detailed document outlining obligations, deadlines, penalties, and conditions for terminating the dispute.
  • Court Approval of Settlement: If the dispute is already in court, the lawyer ensures the submission of the Settlement Act to the judge so it acquires the force of a court judgment.
  • Ensuring Enforcement Mechanisms: Embedding guarantees in the agreement to allow for immediate compulsory enforcement if the settlement terms are breached.

Real-World Scenarios Where You Need a Settlement

Imagine you have a commercial dispute with a partner that has been dragging on in court for 2 years. The business is suffering, and accounts are frozen. With the involvement of lawyers, an agreement can be reached: parties partially waive their claims, the freeze is lifted, and the business continues to operate. Another example: a family dispute over property division. Litigation is expensive and emotionally draining. Through settlement negotiation, parties agree on property distribution or compensation, which the court approves in a single hearing. Also, settlements are common in loan disputes where a bank or private lender agrees to debt restructuring or partial forgiveness if the borrower makes an immediate lump-sum payment.

Georgian Legal Framework

The institution of settlement is clearly regulated by the "Civil Procedure Code of Georgia". Specifically, the Code obliges the judge to attempt to reconcile the parties at any stage of the proceedings. According to the law, a settlement act drafted by the parties and approved by the court acquires the force of a final judgment and can be enforced based on a writ of execution. This means that if a party violates the settlement terms, the other party does not need to start a new lawsuit — they can go directly to the National Bureau of Enforcement. Additionally, the "Civil Code of Georgia" regulates out-of-court settlements (as contracts), which are also binding.

The Process Step-by-Step

The process begins with strategy development. A Legal.ge specialist studies the case files and establishes "red lines" (non-negotiable points). Then, an offer is sent — a compromise option is presented to the opposing party in written or oral form. If there is interest, negotiation rounds (meetings) are held to clarify details. Upon reaching an agreement, a draft Settlement Act is prepared, which both parties and their lawyers review. The final stage is signing and approval. If the case is in court, the act is submitted to the judge for approval; if out of court, notarization may be required to strengthen enforceability.

Why Choose a Specialist on Legal.ge?

Successful settlement requires not only legal knowledge but also strong psychological and negotiation skills. Lawyers registered on Legal.ge possess rich experience in unlocking complex deadlock situations. They know how to protect your interests even during a compromise and how to draft a document that will not become a subject of dispute in the future. Save time, nerves, and money — entrust the settlement process to professionals on Legal.ge.

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