TAIWAN Law and Practice Contributed by: Peng-Kwang Chen, Pamela Huang, Claudia Huang and Ching-Tzu (Katie) Chang, Formosa Transnational Attorneys At Law
most popular ADR methods in practice. That is because a settlement agreement reached in liti- gation, or a mediation agreement, has the same legal effect as a final and binding judgment, and may serve as a writ of execution. As ADR mechanisms have become more established, the mediation utilisation rate has increased significantly in recent years. Accord- ing to Judicial Yuan statistics, the number of suc- cessful mediation cases in civil cases has shown significant growth. Cases handled by the District Courts increased rapidly from over 40,000 cases in 2017 to over 60,000 cases in 2020. 12.2 ADR Within the Legal System In principle, ADR is not compulsory and does not form part of court procedures. However, some cases are subject to mediation before an action is initiated, including: • cases with a subject matter value of less than TWD500,000 (approximately USD16,667); • labour cases; • major commercial cases to which the Com- mercial Case Adjudication Act is applicable; and • cases related to family matters. If a party fails to appear at the mediation ses- sion without a good reason, the court may impose a fine up to TWD3,000 (approximately USD100) for civil cases and family matters, and up to TWD300,000 (approximately USD10,000) for major commercial cases, on the defaulting party. In some cases that apply to small-claim proceedings and labour cases, if a party fails to appear at the mediation session without a good reason after being duly notified to do so five days prior to the session, the court may, on a motion by the party appearing, order oral arguments to
be conducted immediately and enter a judgment based on the appearing party’s statements. 12.3 ADR Institutions The Taiwan government has been promoting ADR for many years, and the courts themselves have established a list of mediators. There are also many ADR organisations in Taiwan offering and promoting ADR. Some examples follow. Chinese Arbitration Association This association is experienced in handling mediation and arbitration cases. It has a reg- ister of arbitrators and mediators and provides various training for arbitrators and mediators. It also organises seminars and symposiums on mediation, arbitration and other related topics, such as the annual Arbitration Week to promote the arbitration system. Township and County-Administered City Mediation Committee This committee offers mediation of civil matters (eg, matters involving property, marriage, dam- age compensation, etc), and criminal matters (eg, public insults, injuries, etc). The Township and County-Administered City Mediation Act regulates such mediation processes. 13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration The Arbitration Law regulates the conduct of arbitration and the recognition or enforcement of arbitral awards in Taiwan. 13.2 Subject Matters Not Referred to Arbitration Subject matters for arbitration are limited to mat- ters in respect of which the parties may reach
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