Conciliation is a quicker and cheaper way to end a dispute without a protracted court process. It allows the parties to agree on a solution that is acceptable to both of them, while at the same time gaining the certainty of a legally binding decision. Through judicial conciliation, a dispute can be brought to an end with less litigation costs, less stress and often with the possibility of preserving good relations between the parties.
Disputes are a natural part of human relationships – whether they are debts, neighbourly disagreements or business commitments. Most people think of dispute resolution as traditional court proceedings, but these are often lengthy, costly and mentally exhausting. However, there is a way to reach an agreement faster and cheaper – the so-called conciliation. This allows the parties to find a compromise that suits both of them, ending the dispute with an agreement that carries the same legal weight as a judgment.
Conciliation is a process in which the parties to a dispute try to find an agreement rather than waiting for a court decision. It can take place directly in court (as a court-led attempt at conciliation) or out of court, for example with a mediator or lawyer. The purpose is to allow both parties to actively participate in the solution and to find a way that is acceptable to all.
In the Czech legal system, the institution of conciliation is enshrined mainly in the Civil Procedure Code. An agreement concluded in the context of conciliation proceedings, which is subsequently approved by the court, becomes an enforceable decision – i.e. a document which has legal force comparable to a judgment.
The advantage is that the dispute ends without further evidence and appeals and the parties are able to reach a solution that the court itself could not impose by its judgment (e.g. a more complex settlement, a repayment schedule, etc.).
A typical case is a neighbour dispute over a fence, where both parties agreed on a financial settlement and joint financing of a new fence instead of protracted court proceedings. Similarly, a loan debt can be settled where the debtor has agreed to repay the amount in monthly instalments and the creditor has agreed to forgive part of the interest, thus avoiding further disputes. Situations in the commercial sphere are also very common – for example, two companies decided to end a dispute amicably, which allowed them to maintain long-term cooperation and avoid the risk of losing a key business partner. These examples illustrate that conciliation is a practical solution that can be mutually beneficial.
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The conciliation process can be summarised in several steps:
The hearing itself tends to be less formal than traditional court proceedings. The judge has a moderating role in the process, not an arbitrator. The main initiative lies with the parties, so it is up to them to find common ground.
A court settlement is a form of agreement between the parties to a case that is concluded before the court and approved by the court in its order. Such a settlement is a final decision – it cannot be appealed, and if one of the parties breaches the agreement, the other can enforce it.
The importance of a court settlement lies mainly in legal certainty. The parties avoid further discovery, judgments and appeals. Typically, judicial conciliation is concluded in civil disputes (e.g. debt disputes, damages), in family matters ( maintenance arrangements, community property settlements) and in commercial disputes, where the aim is often to preserve business relations.
Conversely, the court will not approve a settlement if the agreement would be contrary to the law or would be manifestly prejudicial to the rights of third parties.
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One of the biggest advantages of conciliation is undoubtedly lower costs. In fact, if the parties reach an amicable settlement, the court fee may be partially or even fully refunded, depending on the stage of the proceedings at which the settlement was reached.
Costs of the proceedings, such as lawyers’ fees or expert evidence, are usually borne by the parties themselves, unless they agree on a different division between them. At the same time, the risk of the unsuccessful party having to bear the full costs of the other party is eliminated.
In practice, if the plaintiff pays a court fee of CZK 5,000 and a settlement is reached during the proceedings, the court may refund up to CZK 4,000. This will save both parties not only money but also time that they would otherwise have to spend on protracted litigation.
Conciliation has a number of indisputable advantages that make it an attractive alternative to lengthy litigation. The most frequently highlighted are the savings in time and money, as an agreement is usually reached more quickly and with less expense than a traditional court proceeding. In addition, the parties gain more control over the outcome of the dispute, as they themselves decide on the form of the agreement, instead of the outcome depending solely on the court’s decision. Another important benefit is the possibility of creative solutions that the court could not render in the form of a judgment, such as an installment agreement or a combined settlement. Equally important is the preservation of the relationship between the parties, which is particularly crucial in family or commercial disputes. Last but not least, conciliation brings less psychological burden, as it eliminates the need to go through lengthy and often stressful procedural hearings.
On the other hand, certain limitations must be borne in mind. Not all disputes can be settled amicably – for example, status issues such as the divorce itself are excluded from this option. Another risk is that one party may agree to an unfavourable settlement simply because of the pressure to end the dispute quickly, without carefully considering the long-term consequences. It should not be forgotten that a court may reject a settlement if it would be contrary to law or good morals. Therefore, it is always advisable to have a lawyer with you to ensure that the agreement is fair and to protect your rights.
Good preparation is key to a successful conciliation outcome. First and foremost, it is important to gather all the documents and evidence that will support your position and allow you to negotiate with a stronger footing. Equally, it is advisable to think through compromise options that would be acceptable to you so that you are clear during the negotiations how far you are willing to go.
It is also very practical to prepare a draft settlement in writing to avoid any confusion or differing interpretations of what you have actually agreed. An attorney plays an equally crucial role in helping you to formulate the agreement precisely and to make sure that your rights are not weakened. His or her experience will help you make sure that the agreement complies with the law and that it will not disadvantage you in the future. We will be happy to help you with the conciliation process.
In addition, a lawyer is able to assess whether the other side’s offer is fair and whether entering into a settlement will lead to further complications. With our presence, you will not only have legal certainty, but also psychological support during negotiations, which can sometimes be very tense.
Tip: Business people sometimes have to avoid a situation where there is a misunderstanding between them and their business partner, which can escalate into a dispute. Arbitration can help them resolve the dispute.
Conciliation is an alternative to protracted litigation that allows parties to find a quick, cheaper and less stressful solution with legal weight comparable to a judgment. It can take place in or out of court, often with the participation of a mediator or lawyer, and involves the parties actively seeking an agreement that is then approved by the court and made enforceable. The advantages are lower costs (including the possibility of recovering part of the court fee), shorter duration of the proceedings, creative and flexible agreements (e.g. payment plans), less psychological burden and the possibility of preserving the relationship between the parties. Typical disputes are debt disputes, neighbour disputes, family or business obligations. Conversely, status issues cannot be resolved by conciliation, the court will reject an agreement contrary to law or good morals and there is a risk of accepting an unfavourable agreement under pressure. Successful conciliation requires careful preparation, thoughtful compromise and the expert assistance of an attorney to ensure both legal certainty and fairness of the agreement.
The agreement is enforceable – it can be enforced.
No. The court-approved settlement is final.
Yes, usually in part or in full, depending on the stage of the proceedings.
Yes, but such an agreement is not in itself enforceable. To be on the safe side, it is advisable to have it approved by the court.
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Ondřej is the attorney who came up with the idea of providing legal services online. He's been earning his living through legal services for more than 10 years. He especially likes to help clients who may have given up hope in solving their legal issues at work, for example with real estate transfers or copyright licenses.
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