Liability for bad faith negotiations to settle a civil dispute: a conflict between the values of justice and conciliation?

Authors

DOI:

https://doi.org/10.17308/law/1995-5502/2024/2/144-154

Keywords:

negotiations, good faith, culpa in contrahendo, dispute settlement, mediation, settlement agreement

Abstract

The principle of confidentiality and the rules of culpa in contrahendo applicable to contract negotiations shall also apply to negotiations aiming to settle a dispute, including mediation: their participants have an obligation to act in good faith. However, failure to inform the other party regarding its rights and obligations on the merits of the dispute and the validity of its legal position will not be a violation of this obligation unless there was deceit. As an exception to the general principle of confidentiality, a party should have the right to refer to information and documents obtained during negotiations (including mediation) to prove the dishonest behavior of the other party. In the interests of facilitating reconciliation, the possibility of disclosing in court information about how parties behaved in negotiations and mediation should be limited to exceptional cases. It is promising to develop rules of ethics for negotiators, including parties and their representatives in mediation and other negotiations.

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Author Biography

  • D. L. Davydenko, Belarusian State University

    Candidate of Legal Sciences, Senior research fellow, Associate Professor at, International Law Department

References

Abolonin V. O. Judicial mediation : theory, practice, prospects. M. : Infotropic Media, 2014.

Leanovich E. B. Pre-contractual relations in commercial circulation. ConsultantPlus Belarus. Nam K. V. The principle of good faith: development, system, problems of theory and practice. 2nd ed., revised. and additional. Moscow: M-Logos, 2023.

Nosyreva E. I. Alternative dispute resolution in the USA. M. : Gorodets, 2005. 320 p.

General provisions on purchase and sale, supply of goods and purchase and sale of real estate : commentary on articles 454–491, 506–524, 549–558 of the Civil Code of the Russian Federation / rep. ed. A. G. Karapetov. Moscow : M-Logos, 2023.

Principles of International Commercial Contracts 2016. URL

Brian J. Laliberte. Good Faith, Bad Faith, No Faith: Will a Subjective Good Faith Standard Influence How Litigants Approach Mediation? URL

Howland V. The Meximerican Company (1921) 36 Cal. App. Dec. 948 // Contracts : Remedy Provided for in Compromise Agreement : Remedy for Fraud Inducing Compromise // California Law Review, Vol. 10, No. 3 (Mar., 1922).

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Published

2024-10-01

Issue

Section

Civil Law and Process