Recent Development
According to the Law No. 7155, which was published in the Official Gazette on December 19, 2018, parties must undergo mandatory mediation prior to filing commercial cases for monetary claims (see our legal alert dated December 21, 2018).
The Law No. 7155 added a provision to the Law on Mediation in Civil Disputes No. 6325 (the “Mediation Law”). According to Article 18/A of the Mediation Law, parties who choose to settle their disputes through arbitration do not have to undergo mandatory mediation.
Conclusion
If the parties in a dispute have already concluded an arbitration agreement, they may resolve their dispute through arbitration without undergoing mandatory mediation. If the parties have not chosen arbitration but are willing to avoid mandatory mediation, they can bypass mandatory mediation by agreeing to arbitration.
In brief, when the parties in a dispute believe that mediation will be ineffective and wish to bypass the mandatory mediation, they can agree to arbitration and initiate arbitration directly.
