AE Legal has over twenty-five years of experience in representing local and international clients, including private individuals, corporate entities, and government authorities, across a broad spectrum of disputes in both traditional litigation settings and alternative dispute resolution fora, such as arbitration and mediation.

Litigation and Arbitration Services

Litigation is a form of legal dispute resolution dating back to the beginning of civilisation. The passage of time has seen it adapt to fit the demands of our ever-evolving society. Arbitration is somewhat younger, first making an appearance in English common law during the Middle Ages. Today, both forms are in frequent use in Malta, the latter often employed to remove the burden from the courts. At AE, it’s always our primary recommendation that clients attempt to reach an amicable settlement. However, when this is not possible, our legal team is prepared to represent clients in litigation or arbitration in front of all Courts and Tribunals in Malta.

Litigation in Malta

Litigation is considered to be the traditional, and most popular, form of dispute resolution. In its purest form it involves two opposing parties, together with their legal representation, battling it out in front of a judge, or magistrate in front of the inferior courts, within the walls of the appropriate law courts. Malta is historically a highly litigious nation, where the general belief is that the courts are the only adequate means to settle a dispute. This mentality is gradually changing, and the idea of settling disputes by alternative means is often becoming a preferred route. However, if representation before the courts really is the only way to move forward, AE Legal’s litigation department offers comprehensive representation for all types of disputes including constitutional law, civil law, company law, administrative, employment,and criminal law across all applicable Courts. Malta’s Courts of Justice are divided into Superior and Inferior levels. Judges only sit in the Superior Courts, which are the:

• Civil Court
• Court of Appeal
• Constitutional Court
• Criminal Court
• Court of Criminal Appeal

The Inferior Courts are the Court of Magistrates (Malta) and the Court of Magistrates (Gozo). The latter court has a superior and an inferior jurisdiction.

AE Legal represents its clients both in the Maltese and Gozitan courts.

Arbitration in Malta

The efficiency and expediency of arbitration are its most attractive features. There are two ways in which arbitration could commence, one which is determined by an arbitration clause, and the other which occurs ad-hoc post-dispute. The former can only take place in the event of a contract which contains a clause stating that the parties consent to submit to arbitration in the case of any future disputes. Arbitration in Malta is regulated by the Arbitration Act (Chapter 387 of the Laws of Malta), and the entire process is founded on the Malta Arbitration Centre (MAC). It’s a less formal process when compared to litigation, a fact which contributes to its expedient nature. Costs are also kept at minimum, unlike litigation where the combination of court and representation fees can rise rapidly. Once an arbitration notice is filed at MAC, the other party is notified and is given the opportunity to respond. At this point the panel is formed, which can be made up of one or more arbitrator, depending on the sum of the claim. The award of the arbitration must be made in writing, and once it’s registered by MAC it’s considered to be a final judgement.

Negotiation & Mediation

Mediation and negotiation are two types of alternative dispute resolution that are distinctly separate from litigation and arbitration. This is because they represent a departure from the traditional format of adjudication, where parties attempt to ‘self-help’ without the assistance of courts or tribunals. In negotiation and mediation, information is developed not only for case assessment, but also to understand and address the underlying causes of a dispute, to recognise and modulate the parties relationship, and to arrive at and judge the value, feasibility and durability of an arrangement. However, despite their similarity on this point, the two methods serve to fulfil independent purposes.

Negotiation

For negotiation to take place, both parties must mutually reach a settlement between themselves. It’s concluded when the settlement is something that both sides agree on, usually resulting in one or more concessions. Negotiations are actions through discussions between the parties or their representatives, without the involvement of any third party. It’s imperative that each party consults with a lawyer before reaching a negotiated settlement, ensuring they are made aware of all their rights and duties in relation to the matter.

Mediation

By contrast, mediation is informal and an extension of party choice. The process has often been described as being soft on the parties and hard on the problem. Mediation is essentially facilitated negotiation, and relies on a clear and transparent exchange of information. It offers the benefit of fixed fees, without the possibility of any unexpected costs, making it an affordable and reliable option. The EU Mediation Directive requires all Member States, aside from Denmark, to have a systematic structure in force in order to easily allow disputes to be settled by mediation. Despite the fact that mediation can be applied successfully to almost any dispute, in Malta and many other EU countries its presence is still virtually non-existent outside of family law (for which mediation is mandated).

How AE Legal can help

AE Legal can guide clients through either process, depending on which is more appropriate to the situation. Our team of lawyers have extensive experience in navigating the course to successfully conclude straightforward and complex negotiations. We can also take a less conspicuous role, offering advice and guidance throughout the mediation process, from the application stage all the way through to its conclusion.