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What is ADR and when is it applied?

In Poland, ADR (Alternative Dispute Resolution) is recognised as a separate means of resolving disputes from arbitration.

Polish procedure provides for two means of dispute resolution involving ADR. These are an application for settlement and mediation.

There is a general rule in the CCP that a judge at the appropriate time should encourage the parties to settle. A major amendment to the CCP in November 2006 introduced the possibility of mediation before commencement as well as during the course of proceedings. It may only be commenced once during the course of proceedings. Mediation is voluntary. It is conducted on the basis of an agreement between the parties and a mediator or on the basis of a court decision. After the first hearing the court may direct the parties to mediate but only on their unanimous application. Mediation is confidential. A settlement before a mediator is equivalent to one concluded before a court.

Moreover, initiation of commercial court proceedings is conditional upon failure of an attempt to resolve a dispute amicably. This should be considered as a specific obligatory ADR procedure.

The lower costs attached to mediation are an encouragement for entrepreneurs to undertake this means of dispute resolution. Applications for mediation are becoming more common nowadays.