Which lawsuits are covered?
Pursuant to TTK Article 5/A (Turkish Commercial Code), in commercial lawsuits seeking monetary claims and compensation, applying to a mediator before filing a lawsuit is a prerequisite for litigation. A lawsuit filed without completing the mediation process will be procedurally dismissed due to the absence of a litigation prerequisite.
How long does the process take?
The mediator completes the process within six weeks from their appointment; in mandatory cases, this period can be extended by a maximum of two weeks (HUAK Article 18/A (Law on Mediation in Legal Disputes)). This means a result is obtained in at most eight weeks — a significant time advantage compared to litigation.
What happens if an agreement is reached?
If the parties reach an agreement, the agreement document, with an enforceability endorsement, gains the power of an executive document. If no agreement is reached, the final report is appended to the petition, and a lawsuit is filed. The negotiation strategy and document preparation of the process progress much more efficiently when conducted with the assistance of a lawyer.
How to Apply, How is a Mediator Determined?
The application is made to the competent local mediation office (mediation centers in courthouses) according to the subject of the dispute. The parties can agree on a mediator from the list; if they cannot agree, an appointment is made by the office. The first meeting invitation is delivered to the parties, and discussions are conducted under the principle of confidentiality — statements made during the process cannot be used as evidence in a future lawsuit.
Cost of Not Attending the Meeting
The party who fails to attend the first meeting without a valid excuse is recorded in the final report and, even if found partially or wholly justified in the subsequent lawsuit, will be held responsible for all litigation costs; furthermore, no attorney's fee will be awarded in their favor. This sanction ensures that the process is conducted seriously — ignoring the invitation carries a heavy cost.
Power of the Agreement Document
If the discussions result in an agreement, the document prepared, if signed jointly by the parties, their lawyers, and the mediator, is directly considered an executive document; otherwise, it gains the same power by obtaining an enforceability endorsement. This means if the debtor party fails to fulfill its obligation, direct enforcement proceedings can be initiated without filing another lawsuit. No new lawsuit can be filed regarding the matters agreed upon.
Which Disputes Are Excluded?
Prerequisite mediation is for commercial lawsuits concerning monetary claims or compensation. Requests for preliminary attachment and preliminary injunctions, bankruptcy and concordat processes, and claims other than monetary claims (e.g., annulment of a general assembly resolution) are excluded from this requirement. If the scope assessment is made incorrectly, the lawsuit may be procedurally dismissed, thus the roadmap must be drawn correctly from the beginning.
Advantage of Representation by a Lawyer
Since an agreement reached in mediation has definitive consequences, the complete calculation of claim items, inclusion of interest and expenses, and accurate drafting of the agreement text are critically important. Negotiation strategy and alternative scenarios (litigation and enforcement costs in case of disagreement) should be prepared in advance. For your company, you can schedule a preliminary consultation from our commercial disputes practice page.
Practical Notes: Being Strong at the Table
Mediation is a technically simple but tactically challenging process. According to our experience, the factors determining the outcome are: preparation asymmetry — the party mastering its file catches the opponent's calculation errors at the table; interest and expense items — the start of interest, as much as the principal debt, is also part of the negotiation and cannot be added to the agreement document later if forgotten; securing the payment plan — in installment agreements, an acceleration clause and, if necessary, additional collateral are essential, otherwise, a separate enforcement risk arises for each installment. Another overlooked detail is that participants on behalf of legal entities must carry an authorization document, otherwise the binding nature of the agreement becomes debatable. Final note: "not reaching an agreement" is also a legitimate outcome in mediation — a bad agreement is more expensive than a good lawsuit; sit at the table knowing your alternative (litigation cost and duration).
Fee and Expense Arrangement
If the parties cannot reach an agreement in prerequisite mediation, the mediator's fee for the first part of the discussions as stipulated by law is covered by the Ministry of Justice budget; any time exceeding this is paid equally by the parties — unless otherwise agreed. In case of an agreement, the fee is generally determined according to the tariff based on the agreed amount and shared by the parties. Compared to litigation, the absence of court fees, expert witness fees, and multi-year legal expenses makes mediation cost-effective, especially for medium-sized commercial claims.
Pre-Meeting Checklist
Before sitting at the mediation table:
- Basis of the claim: contract, invoice, current account statement, reconciliations
- Has the interest start date and rate been calculated?
- Have acceptable lower limits and installment scenarios been determined?
- Information regarding the counterparty's solvency (assets, commercial reputation)
- Litigation and enforcement cost projection in case of disagreement
This preparation transforms the discussion from a bargain into a strategy; for a specific assessment for your company, contact us through our commercial law page.
References
- Turkish Commercial Code No. 6102, Article 5/A (added by Law No. 7155; entered into force on 01.01.2019) — mevzuat.gov.tr
- Law on Mediation in Legal Disputes No. 6325, Article 18/A (procedure for prerequisite mediation)
You can access the current versions of legal texts via mevzuat.gov.tr .