In an increasingly dynamic corporate world in which decisions are often made under time pressure and conflicts seem unavoidable, out-of-court dispute resolution is becoming increasingly important. One instrument that is unjustly overshadowed by better-known procedures such as arbitration or mediation are the conciliation boards recognized under state law. However, when professionally managed and well organized, they offer an effective interface between out-of-court resolution and legal bindingness.
Between court and consensus or performance of the conciliation bodies
Conciliation boards are institutions provided for by law that can be called upon prior to a civil action or, in certain cases, must be called upon. This applies, for example, to disputes between neighbors, defamation or property disputes up to an amount in dispute of 750 euros. However, the scope of application is wider than expected: companies can also use conciliation boards, especially if they want to reach an early and cost-efficient agreement with partners or customers without immediately going to court.
What makes the conciliation office special is its hybrid structure. It is legally integrated, but at the same time flexible in the organization of the procedure. In contrast to mediation, an enforceable title can be issued at the end, which is a decisive advantage if the agreement is not only to be informal but also legally binding.
Arbitration proceedings initiated at a recognized conciliation office suspend the limitation period for a claim.
An underestimated strategic element for companies
For companies that keep an eye on their public image and customer loyalty, proceedings before an arbitration board are more than just a legal obligation. It offers a protected space for conflict resolution. With a significantly lower risk of escalation than in court proceedings. The personal discussion in front of a neutral conciliator, often an experienced lawyer or judge with a background in mediation, opens up the opportunity to negotiate difficult issues in a differentiated manner and without losing face.
Experience reports show that even in seemingly hardened constellations, a conciliation hearing can open up new perspectives. Particularly when emotional tensions overlay the factual conflict, the conciliator helps to establish clarity on the matter and at the same time ensure a minimum level of trust. This is a skill that is particularly valuable in long-term business relationships.
Process reliability and efficiency in one
The conciliation procedure not only impresses with its communicative component, but also with its legally clear structure. If an agreement is reached, this can be recorded as an enforceable title without the detour via the civil court. This saves time and resources and protects against further escalation. And even if no agreement is reached, it is still possible to go to court afterwards. However, this has the advantage that the points in dispute have already been clarified and may take less time in the court proceedings.
As already mentioned, arbitration proceedings initiated at a recognized conciliation office (dispute resolution body) suspend the limitation period for a claim (Section 204 (1) no. 4a BGB). The suspension begins when the application is received, provided that it is forwarded to the defendant without delay. It ends six months after the conclusion of the proceedings, regardless of the outcome. This gives the parties important time to secure their claims out of court.
For companies with regular conflict potential, for example in construction law, work contracts or delivery disputes, institutionalized cooperation with a conciliation office offers a valuable extension of the company’s own conflict management. The duration of the proceedings is manageable, the costs are usually considerably lower compared to regular court proceedings and the external impact, for example with public clients or customers, is much more confident.
An appeal to the strategic culture of conflict
Despite the many advantages, conciliation boards are still a niche phenomenon in practice: there is often a lack of awareness among both lawyers and companies. Yet they deserve to be seen as part of a professional, multi-stage approach to conflict resolution. Companies that take a forward-looking approach and actively shape their dispute culture should also consider conciliation boards as a strategic instrument.
The recommendations are clear: early information, targeted advice and, if necessary, the integration of conciliation proceedings into the contract design can help to resolve disputes in a smart, economical and sustainable way.
Quality assurance offices as a building block of modern corporate strategy
Conciliation boards are far more than just a mandatory step before going to court. They are an underestimated but highly effective tool for intelligent, economical and relationship-friendly conflict resolution. For companies that see legal disputes not as a necessary evil, but as processes that can be shaped, they offer an ideal combination of commitment, structure and dialog. It’s time to pay more attention to them as part of a sustainable culture of dispute resolution in business.
