(2023.08.10-ны өдрийн орчуулга)                                                  Unofficial translation

LAW OF MONGOLIA

May 22, 2012              Ulaanbaatar city

ON MEDIATION

CHAPTER ONE

GENERAL PROVISIONS

Article 1.Purpose of this Law

1.1.The purpose of this Law is to establish the legal basis for non-judicial settlement of legal disputes with the support of a mediator, and to regulate relations related to the implementation of mediation.

/This paragraph was amended by the law as of January 17, 2013/

Article 2.Legislation on mediation

2.1.Legislation on mediation shall consist of the Constitution of Mongolia, the Civil Code, the Law on Civil Procedure, the Law on Family, the Law on Labor, the Law on Arbitration, the Law on Courts of Mongolia, this Law and other legislative acts issued in conformity with them.

/This paragraph was amended by the law as of January 15, 2021/

2.2.If an international treaty, to which Mongolia is a party, stipulates otherwise than this Law, the provisions of the international treaty shall prevail.

Article 3.Scope of the application of the Law

3.1.Mediation shall be used in civil law disputes, labor rights disputes and disputes arising from family relations.

/This paragraph was amended by the law as of July 2, 2021/

3.2.Mediation may be used in disputes arising from relations other than those specified in paragraph 3.1 of this Law only in cases specifically provided by law.

3.3.Mediation can be used in civil cases and arbitration proceedings after the dispute has been initiated in the court and arbitration.

3.4.Mediation shall not be used if the dispute arising from the relations specified in paragraph 3.1 of this Law affects the rights and legal interests of third parties who did not participate in mediation, or the public interest.

3.5.Unless otherwise provided by law, the provisions of this Law shall not apply to the voluntary settlement of disputes by parties without the support of a mediator, as well as to the actions of judges to settle cases in a simplified manner.

3.6.The arbitration may determine whether or not a mediator will participate in the dispute resolution proceedings according to its procedure.

Article 4.Definitions of terms of the Law

4.1.The following terms used in this Law shall have the following meanings:

4.1.1."mediation" means the proceedings of a mediator who provides support for non-judicial settlement of disputes between the parties in accordance with the grounds and procedures specified in this Law;

4.1.2."parties" means citizens or legal entities, or non-legal entity who have submitted a request to settle the dispute specified in paragraph 3.1 of this Law through mediation, as well as the case participants who participate in the mediation by agreeing that the court considered that the mediation to be appropriate;

/This sub-paragraph was amended by the law as of January 17, 2013/

4.1.3."mediator" means a qualified person selected or agreed by the parties to mediate the dispute and responsible for supporting them in making a decision on the dispute;

4.1.4."settlement agreement" means a written transaction made between the parties as a result of mediation proceedings on a dispute or specific disagreement.

CHAPTER TWO

MEDIATION PROCEEDINGS

Article 5.Purpose and basic principles of mediation proceedings

5.1.The purpose of mediation is to support by the mediator to the parties in finding a solution that meets their interests, and to settle conflicts and disputes between them in an amicable, prompt and cost-effective manner.

5.2.Mediation shall be conducted based on the following principles:

5.2.1.to be implemented on the voluntary basis of the parties;

5.2.2.to maintain the confidentiality of the participants in the mediation proceedings;

5.2.3.to have a neutral position by the mediator;

5.2.4.to participate with equal rights by the parties in mediation proceedings.

Article 6.Jurisdiction to resolve disputes through mediation proceedings

6.1.The parties shall submit their requests for settlement of their disputes through mediation procedure to the mediators in the court of first instance under the jurisdiction specified in Articles 14-16 of the Law on Civil Procedure, or to the mediators specified in Article 8 of this Law.

6.2.The court shall be obliged to provide the disputing parties with full information about mediation, to provide the parties with the opportunity to reconcile before and after initiating a civil case in court, and at any stage of the case adjudicating proceedings, and to remind them to seek the help of a mediator.

6.3.Mediation proceedings of disputes arising from family relations, except as specified in paragraph 132.4 of the Law on Civil Procedure, shall be considered as one of the non-judicial preliminary settlement procedures.

6.4.If the parties have negotiated and agreed in the contract to resolve the dispute through mediation procedure, it shall be considered that a non-judicial preliminary settlement procedure has been established.

6.5.If a claim is filed in violation of the procedures specified in paragraphs 6.3 and 6.4 of this Law, the court shall refuse to accept the claim in accordance with sub-paragraph 65.1.3 of the Law on Civil Procedure.

Article 7.Mediator in court

7.1.Staff and non-staff mediators shall work in the first instance court.

/This paragraph was amended by the law as of January 17, 2013/

7.2.The General Council of the Judiciary and the secretariat offices of the courts shall be responsible for the organization of the activities of the mediators specified in paragraph 7.1 of this Law and the management of their human resources, and the relevant budget shall be issued from the budget of the respective court.

Article 8.Mediators in state and non-governmental organizations

8.1.State and non- governmental organizations and professional associations may employ a mediator to resolve disputes arising from legal relations in the given sector in accordance with the direction of their activities.

8.2.A qualified mediator who has a higher education, who has received a mediator's training certificate, and who is registered in the list of mediators to be engaged in mediation proceedings in the relevant field matters, shall be employed as the mediator specified in paragraph 8.1 of this Law.

Article 9.Requirements for mediators

9.1.The mediators specified in Articles 7 and 8 of this Law shall meet the following requirements:

9.1.1.to have full legal capacity;

9.1.2.to have a higher education;

9.1.3.to have received a certificate of rights after participating in mediator training;

9.1.4.to be registered in the list of mediators of the competent authorities;

9.1.5.to have no criminal records.

9.2.The mediator shall work in accordance with the code of conduct and other procedures approved by the Council of Mediators specified in paragraph 10.1 of this Law.

9.3.The mediator in the court shall possess a legal profession.

/This paragraph was added by the law as of January 15, 2021/

Article 10.Council of mediators

10.1.The General Council of the Judiciary shall establish a non-staff Council of Mediators /hereinafter referred to as "Council"/ with the function of organizing selection, certification, training, and retraining of the mediators.

10.2.The Council shall consist of five members including a judge, an advocate, and a researcher.

10.3.The General Council of the Judiciary shall approve the models of the application, settlement agreement and notice form to be submitted to the mediator.

10.4.The General Council of the Judiciary shall appoint and dismiss the Chairman and members of the Council and approve the Operational Rules of the Council.

/This paragraph was added by the law as of January 15, 2021/

Article 11.Powers of the Council

11.1.The Council shall exercise the following powers:

11.1.1.develop, approve, and monitor the implementation of procedures and rules of mediation proceedings, procedures on expenses, work fees, and incentives of the mediators, code of conduct of the mediators, as well as their workplace standards;

11.1.2.develop training programs for training and retraining of mediators, and organize trainings thereto;

11.1.3.select mediators and issue the certificate of right;

11.1.4.organize the work of registering mediators and announcing the list of their names to the public;

11.1.5.suspend or remove the mediator's rights, revoke the certificate, or remove from the list of names;

11.1.6.set the order of the Council meeting.

11.2.The Council shall propose the names of the mediators to the courts of first instance, state and non-governmental organizations, and professional associations.

11.3.From the list of names of the mediators proposed by the Council, the organization specified in Article 8 of this Law and the General Council of the Judiciary shall select and register the mediators and provide them with the conditions and opportunities to work in accordance with the relevant procedures.

CHAPTER THREE

PARTICIPANTS IN MEDIATION PROCEEDINGS

Article 12.Participants in mediation proceedings

12.1.The participants in the mediation proceedings shall be the parties to the dispute, their legal representatives, guardians, custodians, third parties whose interests are affected, and other parties.

/This paragraph was amended by the law as of January 17, 2013/

12.2.Two or more parties and one or more mediators may participate in the mediation proceedings.

12.3.The parties shall participate in mediation proceedings in person or through authorized representatives.

12.4.Unless otherwise provided by law, the parties may receive assistance from advocates, translators, interpreters, and other persons during the mediation proceedings upon mutual agreement.

Article 13.Rights and obligations of parties participating in mediation proceedings

13.1.The parties participating in mediation proceedings shall have the following rights:

13.1.1.freely express their intentions to settle disputes through mediation procedure without any pressure or compression, to agree or refuse to be settled disputes through mediation proceedings;

13.1.2.freely choose the range of issues to be negotiated, to reconcile, to refuse, accept and fulfill demands and claims;

13.1.3.make a request to approve, reject or choose a mediator;

13.1.4.choose the method and form of the mediation proceedings, to determine their position in the respective proceedings, to defend it, to obtain information, to provide with documents related to the dispute, to evaluate the terms of the negotiations to settle the dispute;

13.1.5.receive information on the progress of the mediation proceedings, its consequences, and the consequences to be arisen after signing in the settlement agreement;

13.1.6.get information on the consequences of not voluntarily fulfilling the settlement agreement;

13.1.7.refuse the mediation proceedings at any time during mediation;

13.1.8.sign a settlement agreement;

13.1.9.in case of unsuccessful mediation, or to file a claim in court regarding the settlement agreement concluded with the support of the mediator specified in Article 8 of this Law;

13.1.10.other rights provided by law.

13.2.The parties participating in mediation proceedings shall undertake the following obligations:

13.2.1.in case of signing a settlement agreement, perform voluntarily and honestly the obligations under the respective agreement;

13.2.2.to be responsible for the fees, work fees, and necessary expenses of mediation proceedings in accordance with the procedures stipulated in this Law;

13.2.3.actively participate in the mediation proceedings, and attend the mediator's call and scheduled meeting;

13.2.4.other obligations provided by law.

Article 14.Rights and obligations of the mediators

14.1.The mediator shall have the following rights:

14.1.1.to receive work fees and be paid the costs of the mediation proceedings by the mediator specified in Article 8 of this Law, depending on the nature of the dispute, upon mutual agreement with the parties;

14.1.2.inform the public in regards with their activities by maintaining the principle of confidentiality;

14.1.3.when organizing the mediation progress by complying with the procedures specified in this Law, select and apply his/her own methods and forms, and give verbal or written recommendations to the parties on resolving the dispute;

14.1.4.require the parties to actively participate in mediation, to invite the parties to individual and joint meetings;

14.1.5.offer the parties a solution to resolve the dispute;

14.1.6.other rights provided by law.

14.2.The mediator shall undertake the following obligations:

14.2.1.refuse mediation if it is not possible to conduct mediation proceedings in accordance with the law;

14.2.2.strictly adhere to the principles of mediation proceedings and conduct his/her activities in accordance with the rights and interests of both parties by ensuring their equal participation;

14.2.3.provide the parties with information on the mediation progress, its goals and consequences;

14.2.4.be neutral and manage the mediation progress without any personal interest in the dispute;

14.2.5.strictly observe the mediator's code of conduct;

14.2.6.return the documents entrusted by the parties during the mediation proceedings;

14.2.7.not to provide legal advice or assistance to any of the parties;

14.2.8.certify the requests of the parties in each discussed issue and create conditions for mutual compromise;

14.2.9.keep notes on the mediation progress, ask questions to the parties, and document explanations;

14.2.10.other obligations provided by law.

Article 15.Participation of advocate in the mediation proceedings

15.1.In the event that an advocate participates in mediation proceedings at the request of his/her client, it shall be obliged to explain to him/her in regards with the terms and consequences of the negotiations to settle the dispute through mediation procedure.

15.2.If an advocate is a qualified mediator, it shall be prohibited to provide legal assistance to one of the parties participating in the mediation proceedings conducted by him/herself, or to participate as an advocate for one of the parties, or to conduct mediation proceedings in a case in which previously participated as an advocate.

15.3.If an advocate participates in mediation proceedings at the request of the parties, it shall be prohibited to interfere in the mediator's activities and prevent the parties from reaching a settlement.

Article 16.Third party participation in mediation proceedings

16.1.If the interests protected by law are affected as a result of the mediation, a third party may be participated in the respective proceedings at the request and consent of the him/herself as well as the mediator and the parties.

16.2.At the request of the parties, their family members, relatives and other relevant persons may participate in the mediation proceedings.

Article 17.Refusing mediator

17.1.The parties may challenge and refuse the mediator individually or by mutual agreement. If a mediator is refused after a civil case or dispute has been initiated in the court, it shall be informed to the court.

17.2.In the event of any situation that prevents the mediation proceedings to be implemented in accordance with the principle, the mediator shall be obliged to withdraw from the respective proceedings immediately.

17.3.In addition to paragraph 17.4 of this Law, if the mediator considers that the parties cannot reach a settlement with the help of his/her efforts, he/she shall have the right to refuse to conduct the mediation proceedings, or to terminate the mediation proceedings according to the proposals and consents by the parties.

17.4.The parties shall have the right to refuse the mediator if the mediator is a family member or relative to one of the parties, or has given legal advice to one of the parties, or disclosed secrets, or seriously violated the code of conduct.

CHAPTER FOUR
PROCEDURES ON MEDIATION PROCEEDINGS

Article 18.Common basis for mediation proceedings

18.1.It shall be prohibited for the parties to take actions that could undermine the neutral position of the mediator by illegal actions or inactions such as to meet with the mediator without notifying the other party, or to make requests or demands to the mediator to act as an advocate in the respective dispute.

18.2.The mediators shall not disclose the information obtained within the scope of their duties when performing their duties or after being released from their duties.

18.3.The mediator shall take measures to prevent the illegal use of documents obtained during the mediation proceedings.

18.4.Except as provided by law, a mediator who has known the status of the respective case upon performing his/her duties shall not be called as a witness or taken a testimony. The person who discloses the information known during the mediation proceedings to others without the consent of the parties shall bear the liability stipulated in this Law.

18.5.The fact that the parties have chosen mediation and participated in the respective proceedings shall be a ground for the court to restore the statute of limitation in accordance with paragraphs 79.1 and 82.4 of the Civil Code, or consider that the statute of limitation has been interrupted.

18.6.Any explanations made by the parties during the mediation proceedings shall not be assessed as the evidences when adjudicating the dispute by the court.

/This paragraph was added by the law as of January 17, 2013/

Article 19.Place to be conducted the mediation proceedings

19.1.Mediation proceedings shall be conducted in a dedicated hall that can meet the principle of closed proceedings, or in other places agreed upon by the parties.

Article 20.Time period for mediation proceedings

20.1.Mediation proceedings shall be conducted within 30 days, and this period may be extended once at the request of the parties.

20.2.Mediation proceedings to be conducted according to paragraph 30.1 of this Law shall be carried out within the time period specified in paragraph 71.1 of the Law on Civil Procedure.

Article 21.Conditions of mediation proceedings

21.1.The mediation proceedings shall begin when the parties have approached the mediator specified in Articles 7 and 8 of this Law, and the parties themselves have agreed to use mediation after initiating a civil case in court, or the parties have agreed with the judge's proposal on the use of mediation as appropriate.

21.2.Mediation proceedings shall be closed to person other than those agreed to by the parties.

21.3.In the process of mediation proceedings, it shall be prohibited to influence the parties in any way, such as coercing them, putting pressure on them.

21.4.The participants in the mediation proceedings shall be prohibited from disclosing information obtained during the respective proceedings to others without the written consent of the informant.

21.5.The mediator referred to in Article 8 of this Law shall summon the parties and related person by the written notice via their home addresses and postal addresses, or by phone.

21.6.The mediator referred to in Article 7 of this Law shall summon the parties and related person by court notice in accordance with the procedure provided for in Article 77 of the Law on Civil Procedure.

Article 22.Submitting an application for mediation

22.1.A person who wants to settle his/her dispute through mediation procedure shall submit application to the mediator.

22.2.The mediator shall notify the parties with respect to the receipt of the application and the date to be conducted the mediation proceedings.

22.3.The parties may make special requests to the mediator regarding issues such as age, gender, specialty, practice, and experience of the mediator.

Article 23.Selection of mediator

23.1.The parties may choose one or several mediators in one proceeding.

23.2.If several mediators are selected according to paragraph 23.1 of this Law, the mediators shall select the senior mediator among them.

23.3.A non-staff mediator shall be involved in the dispute if the workload of the mediator in the court has increased, a specialized mediator is needed, or the parties choose another mediator.

Article 24.Form to be conducted the mediation proceedings

24.1.The parties must attend the first meeting of mediation proceedings. At this meeting, the mediator shall introduce the orders and procedures of the mediation proceedings, the rights and obligations of the parties, hear the demands and explanations of the parties, and determine the further direction of the mediation proceedings.

24.2.Mediation proceedings shall be conducted in accordance with the principle of joint participation of the parties. The mediator shall meet with the parties individually only when it is necessary.

24.3.The time of one meeting should be enough to fully hear the explanations of the parties and mutually understand each other.

Article 25.Minutes of meeting

25.1.The mediator or the officer to mediate under the assignment of the mediator shall record minutes of meeting of each proceeding from time to time.

25.2.The minutes of meeting shall be recorded in Mongolian, and it shall include when and where the meeting was held, the time when it is started and ended, the surnames, given names, addresses of the mediator and the parties participated in the meeting, the parties' questions, answers, explanations, consensus, solutions, as well as the methods, forms, and the date of further actions.

25.3.The minutes of meeting shall be signed by the mediator and the parties.

25.4.The mediator shall return the documents and items provided by the parties at their requests.

25.5.On the basis of mutual agreement with the parties, the scope and period of storing the documents and minutes of meeting made during the mediation proceedings can be determined.

25.6.The mediator shall be responsible for the storage and protection of the minutes of meeting of the mediation proceedings and other documents in accordance with the procedure approved by the Council, and shall have the right to show them to others only with the consent of the parties.

Article 26.Settlement agreement

26.1.The parties themselves, or upon their request, the mediator shall prepare a draft of the settlement agreement containing the contents of the negotiation of the parties.

26.2.The settlement agreement shall be drafted in Mongolian or in the language agreed upon by the parties. An official translation of the agreement drawn up in a language other than Mongolian shall be attached as an integral part of the agreement.

26.3.In the settlement agreement, the date, surname and given name of the mediator, surnames, given names and addresses of the disputing parties, the date of the start of mediation, the content of the dispute, the positions of the parties regarding it, and the negotiated matters and other issues should be understandably and clearly reflected and it shall be certified upon signing by the parties and the mediator.

26.4.The settlement agreement concluded as a result of mediation proceedings shall comply with the Civil Code, and shall not affect the interests of the third parties that are protected by law.

26.5.Under the settlement agreement, the parties and case participants can reconcile, accept and fulfill the demands, or withdraw their demands and claims with the support of the mediator.

Article 27.Ensuring the performance of the settlement agreements

27.1.If an executor of the duty fails to fulfill his/her obligations under the settlement agreement concluded with the support of the mediator specified in Article 8 of this Law, the other party shall have the right to address to the court in accordance with paragraph 3.1 of the Law on Civil Procedure.

27.2.The settlement agreement concluded with the support of the mediator specified in Article 7 of this Law shall be certified by the judge of the relevant level and an ordinance shall be issued in accordance with the procedures stipulated in paragraphs 74.2, 74.6 and Article 75 of the Law on Civil Procedure.

/This paragraph was amended by the law as of January 17, 2013/

27.3.In case the settlement between the parties is certified and the case is dismissed in accordance with paragraph 30.2 of this Law, the state stamp duty shall be decided in accordance with paragraph 74.5 of the Law on Civil Procedure.

/This paragraph was added by the law as of January 17, 2013/

Article 28.Termination of mediation

28.1.At the request of the parties and at the initiative of the mediator, the mediation may be terminated on the following grounds:

28.1.1.any of the parties have not participated in mediation proceedings;

28.1.2.repeated meetings have not reached in sufficient results and it has become clear that they will not reach the results in the future, or mediation has failed;

28.1.3.the parties did not actively take initiative to settle their disputes through mediation;

28.1.4.the parties submitted a request to terminate mediation;

28.1.5.the mediation period has expired and cannot be further extended;

28.1.6.since the parties refused the mediator, it was impossible to continue the respective proceedings.

Article 29.Fees, costs and charges for mediation proceedings

29.1.The monetary asset being paid by parties and case participants for providing services in connection with the dispute settlement by the mediator in the court shall mean a state stamp duty. The person who filed the application for mediation shall pay the state stamp duty in advance in accordance with the law.

29.2.The expenses incurred necessarily by the mediator in connection with the settlement of the dispute shall mean the mediation proceedings costs. The expenses of the mediator in the court shall be financed from the budget.

29.3.The costs and work fees of the mediator specified in Article 8 of this Law shall be agreed upon by the parties.

29.4.The remuneration of non-staff mediator in the court shall be determined by the General Council of the Judiciary.

CHAPTER FIVE

MEDIATION PROCEEDINGS OF CERTAIN TYPES OF DISPUTES

Article 30.Application of mediation in civil cases

30.1.After a civil case and dispute has been initiated in court, mediation proceedings may be conducted if the parties jointly made a request or if the parties agreed the judge's proposal on consideration of that the mediation is appropriate to be used.

30.2.If the parties reach a settlement as a result of mediation proceedings, the court shall approve the settlement of the parties and dismiss the case in accordance with the procedure specified in the Law on Civil Procedure.

30.3.In the event that mediation proceeding is unsuccessful, the court shall adjudicate the case in the usual manner.

30.4.In the case of a civil case is initiated for several demands, the parties may use the assistance of a mediator for all demands or one or several demands.

30.5.In the course of the adjudication proceedings, if the parties, with the support of a mediator, agree on some of the demands, the respective settlement shall be reflected in the court decision that finally resolved the dispute.

30.6.The judge shall determine the duration of the mediation proceedings to be conducted after the initiation of the civil case.

Article 31.Mediation proceedings in labor disputes

/This article was modified by the law as of July 2, 2021/

31.1.Mediation proceedings in labor disputes shall take place within the framework of labor rights disputes between the employer and the employee.

31.2.The fact that labor rights disputes have been resolved by the Labor Right Dispute Settlement Commission of Business entities and Organizations in accordance with the Law on Labor does not prevent from the use of mediation proceedings in the court adjudicating proceedings of the dispute.

Article 32.Mediation proceedings in family disputes

32.1.The failure of the mediation proceedings conducted in accordance with the out-of-court preliminary settlement procedure specified in paragraph 6.3 of this Law shall not be a ground to refuse to re-conduct the mediation proceedings in a family-related dispute after a civil case has been initiated in the court.

32.2.The court shall implement all the measures for the reconciliation of spouses specified in paragraph 132.1 of the Law on Civil Procedure through the mediator in the court or the mediator chosen by the parties.

32.3.If the spouses do not reconcile within the period determined by the court, the court may involve mediator in the court or a mediator selected by the spouses in disputes related to the division of pensions, alimony, benefits, and joint assets, except for divorce.

32.4.Psychologists, relatives, friends, and colleagues may be involved in the procedure of reconciling the spouses.

CHAPTER SIX

MISCELLANEOUS

Article 33.Informing the public in regards with mediation proceedings

33.1.The tasks on promoting and explaining the mediation proceedings to the public, and supporting the parties in reconciliation shall be carried out by the mediator, the secretariat division and office of the court, and the court information and reference office.

Article 34.Liability to be imposed on the violators of the Law

34.1.Any person or legal entity who violates this Law shall be held liable as provided for in the Law on Violations or the Law on the Legal Status of Lawyers.

34.2.Damages caused by violation of the law on mediation shall be compensated by the guilty party in accordance with the provisions of the Civil Code.

/This article was modified by the law as of December 4, 2015/

Article 35.Entry into force of the Law

35.1.This Law shall be enter into force on April 15, 2013.

/This paragraph was amended by the law as of January 17, 2013/

THE CHAIRMAN OF THE STATE GREAT KHURAL OF MONGOLIA DEMBEREL.D