What is the impact of mediation on the resolution of business conflicts? According to a survey recently released by FGV, between 30% and 50% of conflicts arising within the corporate environment are resolved through agreements established within Mediation Chambers. This is a significant figure, which in 2020 alone generated more than R$ 1 billion in the resolution of business conflicts. This was the subject of an article published in the newspaper O Globo, in which I was one of the interviewees.
Below, I provide the full text of the article that addresses the benefits of this legal instrument, which shortens the distance between agreement and the resolution of disputes that could otherwise drag on for a long time. Enjoy your reading!
Mediation as a solution to business conflicts is growing
Survey reveals significant increase in business mediation in Brazil; data shows settlement rates between 30% and 52% in Mediation Chambers
A recent study on business mediation, the result of a partnership between Canal Arbitragem and FGV (Fundação Getulio Vargas) in São Paulo, sought to provide a comprehensive overview of the main Mediation Chambers operating in Brazil. The study analyzed data from seven Mediation Chambers for the last 10 years (2012 to 2022), with the aim of presenting 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, the 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 a minimum value of R$120,000 and a maximum value of R$461 million.
In 2020, the amounts involved in mediations in the Chambers surveyed exceeded the R$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 in resolving conflicts in the business environment, even in challenging times.
In Brazil, business mediation is regulated byLaw 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 agencies and institutions have been dedicated to the development and promotion of this type of conflict resolution in the country.
Lawyer and business law specialist Maurício Ferro believes that Brazilian mediation has been and continues to be built on the distinction between this legal institution and conciliation and arbitration. "We are experiencing an optimistic moment, as access to justice and reasonable case duration favor mediation and other self-composing means," he said.
According toFerro,the health crisis caused by the Covid-19 pandemic has significantly affected countless companies and led to an increase in requests for corporate reorganization and bankruptcy. "The Judiciary, aware of this situation, has proposed a series of initiatives with a view to encouraging the consensual resolution of these cases by the parties involved, with an 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 indeed become a viable and safe solution for cases involving companies in crisis, whether from the perspective of creditors or from the perspective of the debtor company. "In this sense, several courts have taken the lead in creating their own initiatives, following the position of the National Council of Justice in recommendations and resolutions. Thus, for example, the TJSP created a pilot project for pre-trial conciliation and mediation for disputes," adds Ferro.
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