Commercial premises lease disputes — rent, service charges, termination — taken straight to court or arbitration can cost businesses many months, even years, plus significant expense. Mediation is the middle step often skipped, though in many cases it resolves disputes within weeks at low cost while preserving the parties’ business relationship.
Two mediation paths
Commercial mediation under Decree 22/2017/ND-CP: parties voluntarily engage a mediator or commercial mediation centre to facilitate negotiation. Core principles are voluntariness and confidentiality — mediation communications may not be used as evidence if mediation fails and the case proceeds to litigation. Court-annexed mediation and dialogue under the Law on Mediation and Dialogue at Courts 2020 (81/2020/QH14): after a court accepts a civil case filing, parties mediate at the court before trial — many premises-lease disputes end right here.
A typical commercial mediation process
Step 1 — Propose mediation: one party sends a written mediation request summarising the dispute and proposing a mediator/centre. Step 2 — Agree the ground rules: parties agree on the mediator, venue, language, costs and procedural rules. Step 3 — Mediation sessions: the mediator meets the parties jointly and separately to surface real interests behind positions — e.g. the tenant needs fee relief to stay in business, the landlord needs stable cash flow. Step 4 — Settlement document: if successful, a written record with specific terms and performance deadlines.
Effect of a successful mediation
A successful commercial mediation settlement has the force of a contract — parties perform voluntarily. For coercive enforceability, parties may request court recognition of the out-of-court settlement under the Civil Procedure Code 2015 (92/2015/QH13) — the recognition decision is enforceable like a judgment. Successful court-annexed mediation yields a court decision recognising the parties’ agreement, effective immediately. So even when preserving the relationship, don’t treat mediation as “just talking” — close with a settlement document capable of recognition.
Frequently asked questions
1. Where is a commercial premises lease dispute mediated?
Commercial mediation at a mediation centre or independent mediator under Decree 22/2017/ND-CP; or court-annexed mediation and dialogue after case acceptance under the 2020 Law on Mediation and Dialogue at Courts.
2. Is a mediation outcome binding?
A successful settlement works like a contract, performed voluntarily. For coercive effect, seek court recognition under the 2015 Civil Procedure Code.
3. What follows failed mediation?
Litigation before the courts or commercial arbitration per the contract’s dispute clause. Commercial mediation communications may not be used as evidence in subsequent proceedings.
4. Should mediation precede suing over a premises lease?
In most cases, yes: faster, cheaper, confidential, and relationship-preserving. Skip it only where the other side shows no good faith or urgent court measures are needed.
This article has been quality-reviewed by the FLAW AI Legal Council. Content is for legal reference only and does not replace lawyer advice for specific cases.