Mediation in Commercial Cases: The Scope of the Requirement

With Article 5/A of the Turkish Commercial Code, mediation became a precondition for certain commercial cases from 1 January 2019. The most common mistake in practice is reading the scope too broadly or too narrowly.

Claims within scope

The requirement applies only to claims for receivables and damages concerning the payment of a sum of money. Invoice receivables, contractual damages and penalty claims are within scope.

Claims outside scope

Declaratory actions, annulment of general assembly resolutions, shareholder exit and cessation of trademark infringement fall outside the requirement. Mediation is also not required before seeking interim injunctions or precautionary attachment.

Actions for annulment of an objection in enforcement proceedings also seek collection of a receivable and are therefore subject to mediation where commercial.

In practice

Applying to mediation suspends limitation and preclusive periods. The legal nature and amount of the claim should be settled beforehand, and parties should enter meetings with a defined settlement range.