Mandatory Mediation for Commercial Disputes in Turkey
The Law on the Procedures to Initiate Debt Collection Proceedings for Receivables Arising out of Subscription Agreements No. 7155 (the "Law"), which was published in the Turkish Official Gazette on December 19 2018, has made it mandatory to apply to mediation before filing commercial lawsuits claiming receivables or damages, effective as of January 1st 2019.
Pursuant to Article 20 of the Law, an article with the heading "Mediation as a precondition of justiciability" has been added to the Turkish Commercial Code No. 6102. This newly promulgated article will require mediators to finalize the process within 6 weeks of their assignment.
The mediator may extend this period for no more than 2 (two) weeks where exigencies require an extension. The changes regarding mandatory mediation will not apply to cases that were pending before any judicial authority as of the date when these articles take effect.