The significant growth of Mediation for business conflict resolution
What is the impact of Mediation in resolving business conflicts? According to a survey recently released by FGV, between 30% and 50% of conflicts generated within the corporate environment are resolved with agreements established within the Mediation Chambers. This is an expressive mark and that, in 2020 alone, moved more than R $ 1 billion in conflict resolution in the business sphere. This was the subject of a report published in the newspaper O Globo, in which I was one of the interviewees.
Below, I provide the full text of the report that addresses the benefits of this legal instrument, which shortens distances between the agreement and the resolution of disputes that could otherwise extend for a long time. Happy reading!
Mediation as a solution to business conflicts grows
Survey reveals significant increase in business mediation in Brazil; data shows settlement rates between 30% and 52% in Mediation Chambers
A recent survey on business mediation, the result of a partnership between Canal Arbitragem and FGV (Fundação Getulio Vargas) of São Paulo, sought to draw a comprehensive overview of the main Mediation Chambers operating in Brazil. The study analyzed data from seven Mediation Chambers, referring to the last 10 years (2012 to 2022), in order to present a current profile of business mediation in the country.
Among the Chambers analyzed, with the exception of one that achieved a 100% settlement rate in the mediations administered, settlement percentages ranged from 30% to 52%. As for the values of disputes submitted to mediation, the survey revealed a wide range of variation depending on the year and the Chamber in question, with the minimum value recorded at 120,000 BRL and the maximum value at 461 million BRL.
In 2020, the amounts involved in mediations in the surveyed Chambers exceeded the BRL 1 billion mark. Despite a drop of approximately 20% in the following year, this figure remains high when compared to periods prior to the pandemic and the enactment of the Mediation Law. This indicates that business mediation has been increasingly used as an effective resource for conflict resolution in the business sphere, even in challenging times.
In Brazil, business mediation is regulated by Law No. 13,140/2015, known as the Mediation Law. This legislation establishes guidelines and principles for the practice of mediation in general, including business mediation. In addition, several bodies and institutions have dedicated themselves to the development and promotion of this modality of conflict resolution in the country.
The lawyer and specialist in business law, Maurício Ferro, evaluates that Brazilian mediation was built and is still being built today from the distinction of this legal institute with conciliation and arbitration. "We are experiencing an optimistic moment, as access to justice, as well as the reasonable duration of the process, conspires in favor of mediation and other self-compositional means," he said.
According to Ferro, the health crisis caused by the Covid-19 pandemic significantly affected numerous companies and caused an increase in requests for business recovery and bankruptcy. "The Judiciary, aware of this situation, has proposed a series of initiatives in view of the need to stimulate the consensual solution of these cases by the parties involved, with emphasis on referral to conflict mediation", he reports.
According to the lawyer, in addition to the provisions of the Mediation Law and the CPC of 2015, mediation has really started to play a viable and safe way out for cases involving companies in crisis, either from the perspective of creditors or from the perspective of the debtor company. "In this sense, several courts have stepped forward in creating their own initiatives, following the position of the National Council of Justice itself in recommendations and resolutions. Thus, for example, the TJSP created a pilot project for pre-procedural conciliation and mediation for disputes", adds Ferro.
