Faced with the extent of the economic consequences of the health crisis, the legal family is mobilising, free of charge in all its diversity, to support companies.
In order to meet the needs of economic players, Paris City of Law is launching the Tierce-Conciliation platform. An extra-judicial emergency and conciliation mechanism exclusively dedicated to companies exposed to difficulties generated by the effects of Covid-19. Coming from all legal professions, (company lawyers, lawyers, consular judges, academics...) the third-party conciliators will intervene on a voluntary basis to assist companies in the search for appropriate solutions to preserve their commercial relations.
"Thanks to the energy and solidarity of men and women, the legal sector is taking its rightful place in accelerating the way out of the crisis for companies," says Frank Gentin, President of Paris City of Law.
The creation of a new process for resolving difficulties in commercial relations
Thanks to the provision of a collaborative digital platform, companies will be able to benefit free of charge from the setting up of temporary trading spaces. The aim of the initiative is to avoid having to go before the courts for disputes related to difficulties in the execution of contracts as a result of the Covid-19 crisis.
The provision of this platform will enable companies to manage difficulties in commercial relations resulting from the Covid-19 crisis by avoiding taking their situation to court or arbitration, while ensuring that their rights are preserved (conventional adjustment of limitation periods, confidentiality of negotiation meetings, etc.).
The functioning of the Tierce-Conciliation
The conciliation platform shall be seized upon the joint request of the parties, without limitation of territorial jurisdiction. The parties will then have to indicate the nature of their difficulties by paying only the operating costs.
The admissibility of the request is subject to two conditions: - Benefit from the status of trader - Commercial difficulties must be due to a breach of contract by Covid-19
The parties will then be called for negotiation meetings in the form of a video conference or face-to-face if the complexity of the file so requires. A designated third-party conciliator will attempt to reach an agreement based on an analysis of the legal situation of the parties and, if necessary, will identify a facilitation route in the form of a contractual amendment or a transaction likely to be approved.
If no agreement is reached, the parties will be directed to the usual channels for settling disputes. This will naturally lead to an initial sorting of the urgency between cases likely to be settled quickly, through this third-party conciliation, and those which, in the absence of agreement, will return to the traditional channels for dispute resolution.