Extension of limitation periods because of mediation of certain cross-border disputes1A

1

In this section—

a

“Mediation Directive” means Directive 2008/52/EC of the European Parliament and of the Council of 21 May 2008 on certain aspects of mediation in civil and commercial matters,

b

“mediation” has the meaning given by article 3(a) of the Mediation Directive,

c

“mediator” has the meaning given by article 3(b) of the Mediation Directive, and

d

“relevant dispute” means a dispute to which article 8(1) of the Mediation Directive applies (certain cross-border disputes).

2

Subsection (3) applies where—

a

a limitation period prescribed by any law applicable by virtue of section 1(1)(a) relates to the subject of the whole or part of a relevant dispute,

b

a mediation in relation to the relevant dispute starts before the period expires, and

c

if not extended by this section, the period would expire before the mediation ends or less than eight weeks after it ends.

3

For the purposes of initiating judicial proceedings or arbitration, the limitation period expires instead at the end of eight weeks after the mediation ends (subject to subsection (4)).

4

If a limitation period has been extended by this section, subsections (2) and (3) apply to the extended limitation period as they apply to a limitation period mentioned in subsection (2)(a).

5

For the purposes of this section, mediation starts on the date of the agreement to mediate that is entered into by the parties and the mediator.

6

For the purposes of this section, a mediation ends on the date of the first of these to occur—

a

the parties reach an agreement in resolution of the relevant dispute,

b

a party completes the notification of the other parties that it has withdrawn from the mediation,

c

a party to whom a qualifying request is made fails to give a response reaching the other parties within 14 days of the request,

d

after the parties are notified that the mediator’s appointment has ended (by death, resignation or otherwise), they fail to agree within 14 days to seek to appoint a replacement mediator,

e

the mediation otherwise comes to an end pursuant to the terms of the agreement to mediate.

7

For the purpose of subsection (6), a qualifying request is a request by a party that another (A) confirm to all parties that A is continuing with the mediation.

8

In the case of any relevant dispute, references in this section to a mediation are references to the mediation so far as it relates to that dispute, and references to a party are to be read accordingly.

9

This section is without prejudice to any enactment which has effect for the purposes of provisions—

a

relating to limitation or prescription periods and

b

contained in an international agreement to which the United Kingdom is a party.