The Law regarding Procedures for Initiating Legal Proceedings for Monetary Claims deriving from Subscription Agreements (7155), which introduces a mandatory mediation process for commercial disputes to the Commercial Code, was published in the Official Gazette on 19 December 2018. The new law's articles concerning the mediation process entered into force on 1 January 2019.

Accordingly, as of 1 January 2019 mediation as a cause of action is mandatory for commercial disputes based on monetary or compensation claims (without any financial limitation).(1) In other words, for such claims, the claimant must initiate the mediation process before going to court; otherwise, the court will dismiss the lawsuit due to its lack of a cause of action (ie, a finalised mediation process). The mediation process is finalised in six weeks as of the date on which the mediator is appointed and can be extended only by two weeks, if required.

Mandatory mediation will apply to all lawsuits that fall within the scope of the above paragraph; however, it will not apply to lawsuits pending before first-instance courts, regional courts of justice and supreme courts.

For further information on this topic please contact Asli Tezcan or Bensu Özdemir at Acar & Ergonen Law Firm by telephone (+90 212 358 07 00) or email (aslit@acarergonen.av.tr or bensuo@acarergonen.av.tr). The Acar & Ergonen Law Firm website can be accessed at www.acarergonen.av.tr.

Endnotes

(1) Commercial disputes are defined under the Article 4 of the Commercial Code.

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