CIVIL MEDIATION LEGISLATIVE DECREE 28/2010 STATISTICS FOR THE PERIOD JANUARY 1 ST DECEMBER 31 ST Ministero della Giustizia Dipartimento della Organizzazione Giudiziaria, del Personale e dei Servizi Direzione Generale di Statistica e Analisi Organizzativa
Incoming mediations March 2011 December 300.000 TIME SERIES 295.010 300.455 300.000 LAST 5 QUARTERS 250.000 Statistical projection 115.423 104.208 250.000 Statistical projection 200.000 200.000 Variation (w/o outlier) 4 th trim. v/s 4 th trim. 2014 150.000 150.000-7% 100.000 50.000 0 60.810 154.879 41.604 179.587 196.247 2011 2012 2013 2014 In the comparison between years, is has to be taken into account that: From 13 December 2012 to 30 September 2013 the compulsory attempt at conciliation was suspended; In 2012 there were approximately 45.000 mediations (an average of 11.165 per quarter) for damages from circulation of vehicles and boats, this subject 100.000 matter is no longer mandatory as of September 20, 2013 Responding firms in 4 th quarter 468 / 894 2 50.000 0 94.432 37.483 46.910 82.489 84.210 25.415 29.169 57.074 50.560 62.581 26.762 35.819 22.862 52.794 Q4 2014 Q1 Q2 Q3 Q4 Incoming mediations 75.656 Incoming mediations for one mediation firm, statistical «outlier»
Comparison between cases handled in mediation and those handled in the Tribunals 250.000 The proceedings enrolled in the ordinary courts relating to matters for which a mediation attempt is compulsory represent nearly 8% of the total civil cases registered in Italian tribunals each year. 228.870 2011 Reduction vs 2013 Civil Total = -8% Mediation matters = -16% 200.000 209.572 209.024 195.273 179.587 191.721 196.247 154.879 150.000 100.000 60.810 50.000 41.604-2011 2012 2013 2014 proceedings enrolled in ordinary courts relating to mediation incoming mediations 3
Mediation firm statistically an «outlier» Registered in 2014. Has 104 operational sites. Manages only insurance contract related litigations: Incoming cases 4 th quarter 2014 37.483 1 st quarter 25.415 2 nd quarter 29.169 3 rd quarter 26.762 4 th quarter 22.862 4 th quarter 2014 4 th quarter Almost all cases have ended due to the lack of presence of the counterparty: Resolved cases With counterparty Agreement not-reached With counterparty Agreement reached No presence of counterparty 4 th quarter 2014 25 25 36.844 1 st quarter 29 29 21.663 2 nd quarter 39 19 26.611 3 rd quarter 17 17 26.115 4 th quarter 34 13 26.672 This firm, for the activities reported above, represents a statistical outlier. For this reason the analysis of subsequent pages are processed without its data. 4
Data by subject matter January 1 st December 31 st INITIAL PENDING INCOMING RESOLVED FINAL PENDING Condominium 6.212 23.368 21.522 8.057 Property 9.342 26.934 24.717 11.559 Partition 3.469 9.429 8.486 4.413 Wills and inheritance 2.791 8.210 7.508 3.493 Family covenants and agreements 104 74 85 93 Lease 6.486 23.492 22.680 7.298 Loans 775 2.450 2.331 894 Business rents 724 1.668 1.588 804 Liability for damages from vehicles and boats* 1.103 657 624 1.136 Medical malpractice damages 3.799 13.019 12.347 4.472 Libel 477 1.419 1.359 537 Insurance contracts 3.450 11.811 11.345 3.917 Bank contracts 12.696 46.094 44.911 13.878 Financial contracts 2.064 6.170 5.923 2.311 Other proceedings (non mandatory mediations) 11.001 21.452 20.321 12.133 Total 64.493 196.247 185.745 74.995 *non mandatory matter since September 2013 Insurance contracts «outlier» 5.886 104.208 101.224 8.870 5
Incoming mediations by subject Bank contracts 23,5% Property 13,7% Lease Condominium Other proceedings (non mandatory mediations) 10,9% 12,0% 11,9% Medical malpractice damages 6,6% Insurance contracts Partition 6,0% 4,8% Bank contracts Year 2014 25,1% Wills and inheritance 4,2% Property Other proceedings (non mandatory mediations) 13,1% 11,9% Financial contracts 3,1% Lease Condominium 11,6% 10,7% Loans 1,2% Medical malpractice damages Insurance contracts 6,7% 6,0% Business rents 0,8% Partition Wills and inheritance 4,7% 4,0% Libel 0,7% Financial contracts Loans 2,9% 1,3% Liability for damages from vehicles and boats (non mandatory matter since September 2013) Family covenants and agreements 0,3% 0,0% Business rents Libel Liability for damages from vehicles and boats Family covenants and agreements 0,8% 0,7% 0,4% 0,1% 6
Success rate Abandoned by claimant before start 2,4% % of participation Success rate (including those mediations where parties meet only in the first information meeting) 23,0% No participation 52,7% Participation 44,9% 77,0% Mar. 2011 - Dec. 2012 2013 2014 Agreement not reached Agreement reached Participation Success rate 27,0% 32,4% 40,5% 43,9% 42,4% 47,0% (*) A sample analysis shows that the success rate goes up to 43,5% when parties go further in the mediation attempt after the first information meeting (*) Excluding mediations in which parties participated only in the first information meeting 7
Trend of success rates Success rate (%) 2013 63,2% 57,7% 57,7% Success rate trend when parties go further than the first information meeting 44,1% 46,4% 41,8% 43,7% 42,7% 43,1% 43,2% 43,5% 32,0% 26,8% 23,3% 22,4% 21,2% 20,9% 23,0% 22,2% 23,8% Q1 2013 Q2 2013 Q3 2013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 Q2 Q3 Q4 8
Categories of mediation resolved cases 2011 2012 2013 2014 Judicial referral 700 1,7% 4.965 3,3% 489 2,0% 7.699 5,6% 18.062 9,7% Mandatory mediation (2011-2012) Mandatory Mediation with easy opt-out at the initial meeting (from end 2013) 31.288 77,9% 129.531 84,9% 13.802 57,5% 131.360 83,8% 151.469 81,6% Provided by contract / agreement 200 0,5% 458 0,3% 359 1,5% 1.332 0,6% 823 0,4% Voluntary 7.973 19,9% 17.677 11,6% 9.369 39,0% 15.926 10,0% 15.392 8,3% 20.000 18.062 15.000 Judicial referral mediation 10.000 5.000 4.965 7.699 0 700 489 2011 2012 2013 2014 9
Geography of mediations North-west 27% Central 22% Islands 11% North-east 17% South 24% REGIONS % LOMBARDY 16,6% LAZIO 10,7% CAMPANIA 10,1% SICILY 7,7% TUSCANY 7,4% VENETO 7,0% EMILIA-ROMAGNA 6,9% PIEDMONT 6,8% PUGLIA 5,7% CALABRIA 4,4% SARDINIA 3,1% LIGURIA 2,9% ABRUZZO 2,3% MARCHE 2,0% FRIULI-VENEZIA GIULIA 2,0% UMBRIA 1,5% TRENTINO-ALTO ADIGE 1,4% MOLISE 0,7% BASILICATA 0,6% VALLE D'AOSTA 0,2% Analysis made with a sample of resolved cases 10
Rate of Counterparty Participation in a Mediation Process 2013 41,0% 41,8% 42,7% 43,7% 44,9% 45,2% 44,5% 44,9% 34,8% 36,8% 31,3% 23,7% Q1 2013 Q2 2013 Q3 013 Q4 2013 Q1 2014 Q2 2014 Q3 2014 Q4 2014 Q1 Q2 Q3 Q4 11
Participation by subject Subject % of participation Wills and inheritance 64,9% Partition 60,2% Family covenants and agreements 56,5% Property 55,0% Condominium 54,3% Business rents 51,0% Lease 50,4% Loans 47,4% Bank contracts 44,0% Other proceedings (non mandatory mediations) 41,9% Libel 38,3% Medical malpractice damages 37,5% Ranking of participation 64,9% 60,2% 56,5% 55,0% 54,3% 51,0% 50,4% 47,4% 44,0% 41,9% 38,3% 37,5% Financial contracts 35,9% 35,9% Liability for damages from vehicles and boats (non mandatory matter since September 2013) 23,9% 23,9% Insurance contracts 14,6% 14,6% 12
Success rate analysis by subject Liability for damages from vehicles and boats (non mandatory matter since September 2013) Property Other proceedings (non mandatory mediations) Loans Partition Lease Business rents Condominium Family covenants and agreements Wills and inheritance Insurance contracts Financial contracts Libel Medical malpractice damages Bank contracts 54% [78%]* 46% 36% [55%]* 64% 34% [56%]* 66% 31% [53%]* 69% 28% [44%]* 72% 28% [49%]* 72% 26% [48%]* 74% 25% [39%]* 75% 25% [47%]* 75% 23% [39%]* 77% 14% [36%]* 86% 12% [29%]* 88% 12% [35%]* 88% 10% [23%]* 90% 7% [23%]* 93% 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Agreement reached Agreement not reached * Outcome of the procedures when parties agree on meeting 13
Success rate by type of mediation body Sample Survey Type of mediation organization Number of organizations as of 31.12. Resolved Success rate including cases where the other party did not participate in the process Success rate including only cases in which both parties participated in meetings following the first information one Chambers of Commerce 88 20.361 21,8% 47,8% Private organizations 611 94.415 25,9% 46,8% Bar associations 107 65.398 18,9% 36,9% Other professional associations 88 1.571 32,6% 46,6% Total 894 185.745 22,6% 43,5% 14
Success rate of Mediation by Type of Referral % resolved cases Judicial referral 14,5% [31%*] 85,5% 9,7 % Mandatory mediation 21% [43%*] 78,8% 82,0 % Voluntary 40,6% [62%*] 59,4% 8,3 % 0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Agreement reached Agreement not reached * Outcome of the procedures when parties agree on meeting 15
13) Economic value of mediation disputes Condominium Liability for damages from vehicles & boats (non mandatory mediations since September 2013) Loans Lease Insurance contracts Other proceedings (non mandatory mediations) Property 5.000 5.000 7.024 7.215 9.987 10.000 10.000 avg Valore mediano ALL della MEDIATIONS lite 10.000 Median value 19,929 Average value 137.862 Values indicated for each subject are median values. Financial contracts Business rents Family covenants and agreements 22.348 26.000 29.000 Libel Medical malpractice damages Wills and inheritance Bank contracts 50.000 50.000 50.000 50.000 Partition 0 20.000 40.000 60.000 66.000 16
Success rate by value range over 5.000.000 15% [37%]* 85% 2.500.001-5.000.000 500.001-2.500.000 10% 10% [23%]* [25%]* 90% 90% 250.001-500.000 12% [29%]* 88% 50.001-250.000 13% [34%]* 87% 25.001-50.000 19% [39%]* 81% 10.001-25.000 23% [44%]* 77% 5.001-10.000 30% [51%]* 70% 1.001-5.000 34% [55%]* 66% 0-1.000 24% [46%]* 76% 0% 20% 40% 60% 80% 100% Agreement reached Agreement not reached * Outcome of the procedures when parties agree on meeting 17
Legal Aid 2013 - % of claimants to whom legal aid was granted % of defendants to whom legal aid was granted Categories of mediation % of claimants to whom legal aid was granted % of defendants to whom legal aid was granted 1,0% 1,3% Judicial referral 1,2% 2,0% Mandatory mediation 0,9% 1,1% Voluntary 1,7% 1,6% Type of mediation organization % of claimants to whom legal aid was granted % of defendants to whom legal aid was granted Other professional associations 0,1% 0,6% Chambers of Commerce 2,0% 0,5% Bar associations 0,9% 1,2% Private organizations 0,9% 1,5% 18
Lawyer s assistance in voluntary mediation Total claimants Total defendants 17% 48% 52% 83% Assisted by lawyer NOT assisted by lawyer From September 21 st 2013 the assistance of parties by lawyers is mandatory for all mandatory mediations 19
Days in mediation compared to days in Court CIVIL CASES IN COURTS MEDIATION Cases when an agreement is reached 65days 2012 902 days 82days 2013 Litigious cases in 83days 2014 103days 20
Ministero della Giustizia Direzione Generale di Statistica e Analisi Organizzativa Document available at https://webstat.giustizia.it