I. Current situation of cancelling mediated settlement agreements

The current practice of cancelling mediated settlement agreements reflects various complexities arising in dispute resolution. Many mediated settlement agreements are cancelled due to one party’s failure to properly perform its commitments or the emergence of new disputes after a successful mediation.

In addition, limited awareness and improper application of legal regulations governing the cancellation of mediated settlement agreements have contributed to prolonged disputes, resulting in significant loss of time and costs for the parties concerned.

II. Legal regulations on the cancellation of mediated settlement agreements

1. Cases in which a mediated settlement agreement may be cancelled under the law

Pursuant to Clause 2, Article 212 of the Civil Procedure Code 2015, regarding the issuance of decisions recognizing the mediated settlement agreement:

  • A Judge shall issue a decision recognizing the agreement only if the litigants have reached an agreement on the settlement of the entire case.

Accordingly, a Judge shall only issue a decision recognizing a successful mediation based on the voluntary will of the litigants. Therefore, if a mediated settlement agreement is not reached on a voluntary basis, such agreement may be cancelled in accordance with the law.

In addition, other grounds for cancelling a mediated settlement agreement include:

  • The mediated settlement agreement has been recognized but violates the law or infringes upon the lawful rights and interests of one or more parties or a third party;
  • The agreement is established due to mistake, deception, threat, or coercion, resulting in the agreement not accurately reflecting the true and voluntary intent of the parties;
  • The agreement violates prohibitions of law or is contrary to social morals.

Accordingly, the cancellation of the mediated settlement agreement aims to protect the lawful rights and interests of the parties and to ensure the legality and integrity of the mediation process. Such cancellation may only be conducted according to a court decision where clear legal grounds are established in accordance with the law.

2. Time for requesting the cancellation of the mediated settlement agreement

Based on Article 212 of the Civil Procedure Code 2015:

  • After the mediation record confirming successful mediation is made, if none of the litigants changes their opinion within 7 days, the Court shall issue a decision recognizing the mediated settlement agreement.
  • Within 5 working days from the date of issuance of such decision, the Court shall send the decision to the litigants and the Procuracy.

It means that the time for requesting the cancellation of the mediated settlement agreement is before the expiration of 7 days from the date on which the record of successful mediation is made. During such a period, the litigants may change their opinions regarding the agreement. If no change is made within this 7-day period, the agreement shall be recognized by the Court.

3. Competent authority to cancel the mediated settlement agreement

Under the provisions of the Civil Procedure Code 2015, particularly Article 212 and other relevant regulations on mediation:

  • The Judge presiding over the mediation session or a Judge assigned by the Chief Justice of the Court has the authority to issue a decision recognizing the mediated settlement agreement.
  • Accordingly, the People’s Court has the authority to issue decisions recognizing or cancelling mediated settlement agreements.

Where the litigants request the cancellation of the mediated settlement agreement within the prescribed time, jurisdiction over such request lies with the People’s Court.

Therefore, the competent authority to cancel the mediated settlement agreement is the People’s Court that issued the decision recognizing the mediated settlement agreement.

III. Certain questions relating to the cancellation of mediated settlement agreements

1. When does a party have the right to request the cancellation of the mediated settlement agreement?

Participants in the mediation have the right to request the cancellation of the mediated settlement agreement if there is a change of opinion regarding the contents of the agreement, meaning that one of the litigants no longer agrees with the agreement reached during the mediation session. Such the right is recognized by law to ensure voluntariness and objectivity in the civil dispute resolution process.

Specifically:

  • Prior to the Court issuing a decision recognizing the agreement, if any litigant changes their opinion and objects to all or part of the agreement, the mediated settlement agreement shall no longer be eligible for recognition;
  • An agreement shall only be recognized when all litigants maintain their opinions, fully consent to the contents of the mediation, and such agreement does not violate prohibitions of law or contravene social morals;
  • A change of opinion does not require justification; litigants may freely withdraw their consent, provided that such withdrawal occurs before the Court issues the decision recognizing the agreement.

Accordingly, the right to request the cancellation of the mediated settlement agreement is an important mechanism to protect the lawful rights and interests of litigants and to ensure that the recognition of agreements is based on the final and voluntary will of all parties.

2. Within how many days from the date of successful mediation must a cancellation request be made?

Pursuant to Article 212 of the Civil Procedure Code 2015, litigants have the right to request the cancellation of the mediated settlement agreement if they change their opinion regarding such agreement within 7 days from the date on which the record of successful mediation is made. If, during such a period, one or more parties no longer agree with the agreement reached, they may request that the mediated settlement agreement not be recognized.

3. How is the procedure for requesting the cancellation of the mediated settlement agreement implemented?

The procedure for requesting the cancellation of the mediated settlement agreement is implemented as follows:

  • Preparation of the request: A litigant who has changed their opinion must prepare a request for non-recognition of the mediated settlement agreement or a written statement of change of opinion, clearly stating the reasons for disagreeing with the contents recorded in the mediation record. The request must specify personal information, the contents of the agreement reached, the disputed contents, and a request that the Court not issue a decision recognizing the agreement.
  • Submission of the request to the Court: The request is submitted to the People’s Court handling the case and presiding over the mediation session. The request may be submitted directly or by post within the legally permitted period for changing opinions (before the Court issues the decision recognizing the agreement).
  • Receipt and handling: The Court shall receive and record the litigant’s change of opinion. Where at least one party changes their opinion, the Judge shall not issue a decision recognizing the successful mediation, and the case shall continue to be resolved in accordance with ordinary procedures.
  • No separate hearing required: A change of opinion does not require the opening of a new hearing. The Court only needs to verify the contents of the request as a sufficient basis for non-recognition of the agreement.

4. Is it necessary to prove fault or a violation of law when requesting the cancellation of mediated settlement agreements?

The the cancellation of the mediated settlement agreement does not necessarily require proof of fault or violation of law if the agreement has not yet been recognized by a court decision (i.e., it is still within the period following successful mediation and before the expiration of the time for changing opinions under Article 212 of the Civil Procedure Code 2015). During such a stage, it is sufficient for one party to change their opinion; no reason or proof of violation is required, and the Court will not issue a decision recognizing the agreement.

However, if the agreement has already been recognized by a court decision, the cancellation becomes more complex, and the litigant must:

  • Submit a request for cancelling the decision recognizing the successful mediation; and
  • Prove one of the following grounds: Deception or coercion at the time of entering into the agreement; serious procedural violations; the contents of the agreement being contrary to law; or infringement upon the rights and interests of a third party, etc.

Accordingly, whether proof of fault is required depends on the timing of the request and the legal status of the agreement (whether or not it has been recognized by the Court).

5. Is a decision on cancelling the mediated settlement agreement subject to appeal or protest?

A decision on cancelling the mediated settlement agreement may be subject to appeal or protest. It means that if a party disagrees with the decision cancelling the agreement, they have the right to request a higher-level court to review such decision by way of appeal.

The Civil Procedure Code 2015 does not contain any provision restricting appeals or protests against decisions cancelling mediated settlement agreements. Therefore, appeals or protests may still be lodged in accordance with the law.

In addition, if such a decision contains legal or procedural violations, competent authorities may also review and lodge protests for handling in accordance with applicable regulations.

IV. Legal advisory services relating to the cancellation of mediated settlement agreements 

NP Law’s legal advisory services on the cancellation of mediated settlement agreements assist clients in identifying legally permissible grounds for cancellation, applicable time limits, and procedural requirements. We provide comprehensive legal solutions, from assessment of agreement contents to preparation of dossiers and representation before competent authorities, ensuring that clients’ lawful rights and interests are protected in strict compliance with the law.