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Mediation is a method of alternative dispute resolution that uses a neutral third party to assist parties in resolving disputed issues. Mediator conducts the negotiation, but has no authority to decide. He is obliged to remain impartial, provide information to parties to the mediation proceedings as well as keep confidentiality of the information disclosed during the proceedings. Mediation is voluntary and allows disputing parties considerable flexibility in reaching a resolution. The article describes the German Mediation Act that is transposing Directive 2008/52/EC of the European Parliament and of the Council of 21 May 2008 on certain aspects of mediation in civil and commercial matters. Under new law judges are allowed to play the part of mediators in order to find an amicable solution in the course of conciliatory proceedings.
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