Arbitration vs. Mediation – The Lithuanian Situation

Abstract

The article discusses the development, features and perspectives of arbitration and mediation. The author carries out a detailed historical analysis of those dispute resolution mechanisms. Both arbitration and mediation are relatively new institutions in Lithuanian law and their emergence and development may be associated exclusively with the country’s restored independence. Recently the Supreme Court of Lithuania, has encouraged their adoption and moved Lithuania towards the apparent pro-arbitration group of States. The article analyzes the common features and differences between arbitration and mediation, and suggests which form should be attractive to the business community. The article reviews proposals to improve the mediation process (proposals to establish mandatory mediation for certain categories of cases, introduce some qualification requirements for mediators, etc.). The article concludes that currently arbitration is more widely used than mediation in Lithuania as well as the existing case law.