The obligation to apply to a mediator before filing a lawsuit over commercial receivables and compensation claims, the timelines, and what companies should keep in mind.
Since 1 January 2019, applying to a mediator before filing a lawsuit has been mandatory for commercial receivables and compensation claims for a sum of money (Turkish Commercial Code, Art. 5/A). A lawsuit filed without first applying to a mediator is dismissed on procedural grounds.
Which disputes are covered?
The rule covers commercial claims for the payment of money. The most common in practice are:
- Invoice receivables arising from sales, service and supply contracts
- Current account balances
- Compensation claimed for breach of contract
Where is the application made?
The application is made to the mediation office at the courthouse where the competent court is located. The office appoints a mediator from its list, who then invites the parties to a first meeting.
How long does it take?
The mediator concludes the process within six weeks of appointment. Where necessary, this may be extended by up to two weeks. From the date of application until the final report, limitation periods are suspended and time limits for the loss of rights do not run.
What companies should keep in mind
Attending the first meeting. A party who fails to attend the first meeting without a valid excuse bears all litigation costs in a later lawsuit, even if they win the case.
An authorised representative. For the process to produce a result, the company should be represented by someone with decision-making authority or by an authorised lawyer.
Documents. Having contracts, invoices, correspondence and account statements ready from the start allows the negotiation to proceed on concrete information.
If an agreement is reached
A settlement agreement signed jointly by the parties, their lawyers and the mediator is treated as an enforceable court-judgment equivalent, without the need for an enforceability annotation. The parties cannot later sue over matters covered by the agreement.
If no agreement is reached
The mediator draws up a final report. The original, or a copy certified by the mediator, must be attached to the statement of claim.
This article is for general information only and does not constitute legal advice.
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