ERDEM-NEWSLETTER-2018-metin

294 NEWSLETTER 2018 Mandatory Mediation in Commercial Disputes Since the beginning of 2018, it has been predicted that mediation, which is mandatory for disputes arising from the labor law, would ex- pand to include various other types of disputes. Provided that it is en- tered into force as of 1 January 2019, Article 5/A added to the Turkish Commercial Code (“TCC”) the mandatory application to mediation prior to filing a lawsuit, and is regulated as a pre-condition to filing a lawsuit in commercial cases as set forth in Article 4 of the TCC and other codes, where there is a claim for receivables and compensation, and the subject matter of the commercial dispute concerns payment of a certain amount of money. With the new Regulation, it is ordered that the mediator shall con- clude the application in six weeks following the date of appointment, and this time may be extended in compulsory cases by the mediator by a further two weeks, at the most. Thus, a period of time that is longer than the mandatory mediation process as provided for under the labor law is allowed. The provisions regarding mediation, as a pre-condition prior to filing law suit, shall not be applied to the cases that are pending before the courts of first instance, Court of Cassation, and the Supreme Court, as of the date of entry into force of these provisions. Conclusion “The Law on the Procedure to Initiate Proceedings based on Mon- etary Receivables Arising from Subscription Agreements” numbered 7155 entered into force through publication in the Official Gazette dated 19.12.2018, and not only brought with it a new execution sys- tem regarding the execution proceedings of credits that constitute a substantial workload, it also imposed the obligation to file an auditing report prepared by the restricted establishments, instead of a financial analysis report, which holds an important place in concordat practice and, as well, it made the application to mediation mandatory in com- mercial cases prior to initiating a lawsuit by regulating it as condition prior to filing a lawsuit.