In order to resolve your disputes effectively and allocate the judicial resources rationally, the First International Civil and Commercial Court of Hainan has established an alternative dispute resolution mechanism. Pre-litigation mediation aims for the parties to settle disputes more peacefully, quickly and economically. In the following, the guidelines on pre-litigation mediation are provided to help you understand the relevant procedures. Please read carefully.
1.Please First Learn about the Advantages and Benefits of Mediation
1.1 Amicable negotiation. Compared to a court hearing, mediation can alleviate the conflict. You can solve the problem in an amicable atmosphere. It is beneficial for both sides not only to end disputes in amicable terms, but also to be able to live in harmony and cooperate with each other in the future.
1.2 Time Efficiency. The procedure of mediation is flexible and simple. If an agreement is reached, it will come into effect at once after the signature, which will reduce your time in court, save traffic time, energy and expenses. If the mediation fails, move to the proceedings directly.
1.3 Efficient Procedure. If you reach a mediation agreement, the court shall approve legal effect of the agreement. As the mediation agreement is the result of mutual understanding and consultation, beneficial for both parties to conscientiously fulfil the agreement and ensure its smooth implementation.
1.4 Conservation of Resources. Mediation can greatly conserve judicial resources. For example, as the case if placed on file, parts of cases will be settled which will alleviate the burden of the trial implementation and wind up cases.
1.5 Reducing Cost. In accordance with the rules of the Provisions of Litigation Costs by the Supreme People’s Court, the parties who reconcile of their own accord and apply to withdrawal the lawsuit will be exempted from the court acceptance fee. Where the parties concerned accept the mediation, the court may appropriately reduce the costs of the proceedings. Where a conciliation agreement is reached before the trial, the people’s court shall appropriately reduce the costs of the proceedings.
2. Matters Concerning the Pre-Litigation Mediation
2.1 The range of mediation: any commercial cases involving foreign areas, Hong Kong, Macao or Taiwan within the scope of the jurisdiction of this court should apply to the procedure of pre-litigation mediation before placing the case on file. Where the parties explicitly disagree with the mediation, the willingness for mediation should be expressed in accordance with the mediation plan. If the party refuse the pre-litigation mediation without probable cause, the case will not be accepted by this court.
Please pay attention to the following conditions which are not applied to the mediation: cases are applied to regarding special procedure, supervision procedure or public summons procedure, marriage and other cases concerning identification. It is applicable to cases involving special procedures, supervision, procedures, public notice procedures, marriage cases, identification cases, and other cases that cannot be mediated in accordance with its nature.
2.2 The Cases Management Office of this court will inform you prior to the pre-litigation and guide you to the mediator or mediation organization for pre-litigation mediation.
2.3 Any parties who explicitly refuse the pre-litigation procedure will need to issue a Refusal Mediation Confirmation. This is a document signed by the party which explains the reasons for refusing the mediation. Where the party refuses to perform, the action shall be recorded into the credit litigation, the action shall be recorded into the credit litigation file for the case and regulated in the judgement with litigation and attorney fees.
2.4 If a case involving Hong Kong is assessed by the neutral third party prior to the litigation,the legal expert will guide you to reach a dispute settlement on the basis of the assessment report. The concerned party can also request the court to appoint a mediator to assist in mediating on the basis of the assessment report. Before filing, the time limit for mediation shall not exceed 30 days, and the time limit for mediation shall not exceed 60 days. If the settlement fails to be reached, the case will be transferred by Cases Management Office of this court and placed on file. Where the neutral third party has made an assessment, the judge shall promptly proceed to the trial.
2.5 Once a mediation agreement is reached, the mediator or mediation organization will guide and assist you in signing a conciliation agreement, informing and translating the legal consequences of the mediation agreement. If necessary, you will be guided to request the people’s court for judicial confirmation of the mediation agreement.
2.6 If the following disputes fail to reach an agreement during mediation after the pre-litigation mediation and the party is only in dispute on the subject matter instead of the legal relationship itself, the mediator or mediation organization will ask the party if they are willing to apply the Accreditation Mediation Agreement.
(1) Where the subject matter of the dispute is under 20 thousand Yuan (including 20 thousand Yuan), and the dispute is over the contract for sale, work or lease with certain legal relations;
(2) Disputes over compensation for personal injuries and property damage with certain legal relations;
(3) Disputes over claiming support for children, pension and alimony;
(4) Disputes over labor remuneration;
(5) Other ordinary civil disputes involving payments.
2.7 Recording Mechanism of Uncontroversial Fact. If the mediation agreement fails to reached with the assistance of the mediator or mediation organization of this court, the uncontroversial fact of the pre-mediation shall be recorded completely and accurately in the Form for Uncontroversial Fact recording with party’s consent. The party will be duly informed of the recorded content. After parties have signed to confirm the effectiveness of the evidence, a proof concerning the recorded facts and the pre-litigation mediation will not need to be lodged.
Please pay attention to the following circumstances where evidence will be deemed incomplete in the Form for Uncontroversial Fact and will be referred to the original mediation organization mediator: violating compulsory provisions of the law, injuring the interest of the state, general public and other people; against public order and good social customs; violating the principle of voluntariness; other circumstances of non-confirmation.
2.8 The legal consequence of refusing a rational settlement. The party concerned which refusal, the rational settlement will be subject to unfavorable consequences regarding litigation expenses and attorney’s fees. For further details, please refer to the Risk Notice for Refusal to the Rational Settlement.
3. Paying Attention to the Matters Concerning the Mediation in the Lawsuit.
The following mediation documents shall be submitted to the court before hearing to prove that the concerned party have carried out the pre-litigation mediation at the minimum level.
3.1 Submitting the records of mediation to confirm that the concerned party has participated in at least one substantial mediation presided by the mediator;
3.2 Submitting a mediation certificate with the mediator's signature to confirm that the mediation has been presided by the mediator for parties by telephone, through an online platform or through other ways;
3.3 Submitting other evidence to confirm that the concerned party has participated in at least on pre-litigation mediation at the minimum level.
If the concerned party explicitly accepts the mediation, the dispute shall be settled by the judge or the Cases Management Office in accordance with the party’s opinions.