What is Mandatory Mediation?
Law No. 7155 introduced mediation as a procedural requirement in commercial disputes. Accordingly, the mediation process must be exhausted before filing a lawsuit in certain commercial cases.
Which Commercial Cases Fall Under Mediation?
Claims and compensation demands involving payment of a certain amount of money are within the scope of mandatory mediation. Examples include:
• Commercial debt lawsuits
• Invoice receivable cases
• Unfair competition compensation
• Disputes arising from contracts between companies
• Distributorship and dealership agreements
• Lawsuits arising from commercial sales contracts
How Does the Mediation Process Work?
A mediation application is made to the authorized mediation bureau or courthouse mediation center. The process proceeds with these steps:
1. Application is filed and a mediator is appointed
2. The mediator invites the parties to a meeting
3. Information about the process is provided at the first meeting
4. Negotiations are conducted
5. A settlement or non-settlement report is prepared
Mediation Time Limits
The mediation period in commercial disputes is 6 weeks from the date of mediator appointment. This period may be extended by the mediator for a maximum of 2 weeks in mandatory cases.
In Case of Settlement
If the parties reach an agreement in mediation, the settlement document is considered equivalent to a court judgment. This document is enforceable like a court decision. An enforceability annotation can also be obtained for the settlement document.
In Case of Non-Settlement
If no agreement is reached in mediation, a final report is prepared. This report is attached to the petition and submitted to the court. A lawsuit filed without the final report is rejected on procedural grounds due to absence of a procedural requirement.
Consequences of Non-Attendance at First Meeting
If both parties fail to attend the first meeting, the application is dismissed. If one party fails to attend, the non-attending party is held responsible for all litigation costs even if they are partially or fully vindicated in the case, and no attorney fees are awarded in their favor.
Conclusion
Commercial mediation is an effective means for faster and more economical resolution of disputes. Proper management of this process in cases within mandatory mediation scope saves both time and costs. Receiving professional legal support during the mediation process is of great importance for effective negotiation.