Mandatory Mediation in Commercial Disputes in Türkiye

Understanding Mediation in Türkiye

Mediation is an alternative dispute resolution mechanism that allows parties to resolve conflicts without resorting immediately to court proceedings. While mediation can be voluntary in many areas of law, certain types of disputes in Türkiye require mandatory mediation as a precondition before filing a lawsuit.

One of the most important fields where this applies is commercial disputes, where mandatory mediation has been in force since January 1, 2019. From that date onward, mediation became a legal prerequisite for bringing many types of commercial cases to court.

If a lawsuit is filed without first attempting mediation, the court will dismiss the case for lack of procedural requirement.

Legal Basis for Mandatory Mediation in Commercial Disputes

Mandatory mediation in commercial disputes was introduced by Law No. 7155, published in the Official Gazette on December 19, 2018, concerning the initiation of enforcement proceedings for receivables arising from subscription agreements.

Key Articles

• Article 5/A of the Turkish Commercial Code (6102)
  For commercial cases involving monetary receivables or compensation claims, applying to a mediator is a condition of filing a lawsuit.

• Article 18/A of the Law on Mediation in Civil Disputes (6325)
  This article sets out the framework for mandatory mediation. It requires plaintiffs to attach the final mediation report to the lawsuit petition. Failure to do so results in dismissal for lack of procedural condition.

• Deadlines
  Mediation must be concluded within six weeksfrom the mediator’s appointment, with a possible two-week extensionin exceptional cases.

Exceptions to Mandatory Mediation

Not all commercial disputes require mediation. For example, the law excludes:

• Cases already pending before first instance courts, regional courts of appeal, or the Court of Cassationwhen the law came into effect.

• Certain urgent cases where judicial protection is necessary.

Procedure of Mandatory Mediation

1. Application
   Applications are made to the mediation bureau in the jurisdiction of the competent court. If no bureau exists, the filing is made with the designated court office.

2. Selection of Mediator
   The mediator is appointed from the official list by the bureau, unless both parties agree on a specific mediator.

3. Mediation Process

   • The mediator must finalize the process within three weeks, extendable by one week in exceptional circumstances.

   • If one party fails to attend the first session without valid excuse, that party will bear all court costsif a lawsuit follows, even if they later prevail in the case.

4. Final Report
   If the parties reach an agreement, the terms are recorded in the mediation agreement. If they do not, the mediator issues a final report, which must be attached to the lawsuit petition.

5. Effect on Time Limits
   From the moment mediation is applied for until the final report is issued, statute of limitations and forfeiture periods are suspended.

Why Mandatory Mediation Matters in Türkiye

Türkiye’s judicial system carries a heavy workload, and trials in commercial matters can often be lengthy. Mediation provides a faster and more cost-effective solution. For businesses, where time is often more valuable than prolonged litigation, mediation can be the most practical approach.

By resolving disputes efficiently, mediation not only reduces the burden on the judiciary but also protects commercial relations and contributes to economic stability.

Advantages of Mediation in Commercial Disputes

• Time Efficiency: Most disputes are resolved within weeks instead of years.

• Cost Savings: Lower legal fees and reduced court costs.

• Confidentiality: Discussions remain private, protecting business reputations.

• Flexibility: Parties have greater control over the outcome compared to court judgments.

• Preservation of Business Relations: Encourages cooperation rather than confrontation.

Conclusion

Mandatory mediation in commercial disputes has become an essential step in Türkiye’s legal system. It ensures that parties make a serious attempt to resolve their issues before resorting to litigation, saving both time and resources.

At Bayraktar Attorneys, our experienced legal team provides expert guidance in mandatory mediation processes for commercial disputes. We represent and advise our clients to achieve the most favorable outcomes, whether through settlement or subsequent litigation when necessary.