The master's thesis titled "Mediation – a Phenomenon in Theory, a Paradox in Practice" explores the discrepancy between the legal framework governing mediation and its actual implementation within the Slovenian legal system. Although mediation is promoted as an efficient, humane and cost-effective method of dispute resolution, its practical application remains limited. The thesis analyses the relevant Slovenian legislation, court statistics, and the results of two surveys (one among the general population and the other among Slovenian attorneys) to assess the public's awareness and practical use of mediation. Special attention is given to the role of judges in referring parties to mediation. A comparative analysis of six foreign legal systems (India, China, Russia, Canada, Zambia, European Union) reveals that the success of mediation depends on legislative support, cultural acceptance and institutional infrastructure. The final chapters address the cost of mediation, the role of non-governmental organisations, the potential of artificial intelligence in mediation, and provide proposals for systemic improvement. The key finding is that despite an adequate legal framework, mediation in Slovenia remains underused due to insufficient judicial initiative, lack of awareness and weak institutional incentives.
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