On 1 July 2024 the amendments to the Civil Procedure Code will come into force, according to which mediation will become a mandatory phase of court proceedings in some claims related to co-ownership or company disputes.

When filing such a claim, the parties should attempt to resolve their dispute through an independent mediator and only then to consider whether or not they actually want to go to the court.

At the judge’s discretion mediation could also be mandatory in almost all other disputes – from divorce and child custody to breach of contract, corporate claims, possession claims and intellectual property disputes.

It is likely that many judges will exercise their power to oblige parties to participate in mediation in the hope that the dispute could be resolved without lengthy and complex legal proceedings. After all, a major purpose of mediation is to relieve the court system mostly of disputes the parties could settle on their own.

However, let’s not forget that even now the court is obliged to propose to the parties a settlement in almost all cases. Nevertheless, every litigator knows that this legal provision is simply a formality. If the parties have the will to settle, they will act in that direction regardless of the court’s guidance.

It will be interesting to see how parties obliged to participate in mediation will react.

Proponents of mediation believe this mandatory step will in most cases help the parties calm down, adopt a rational approach and resolve the dispute through mutual compromise.

The significant reduction of court fees in case of a successful mediation is an indisputable advantage. The costs of the mediation itself are borne by the court and if it results in a settlement 75% of the court fee is returned to the claimant.

Аrguments against this method could be the risk of slower justice and the national mentality of Bulgarians, who often deem that sentencing the defendant is a matter of honour.

As the saying goes – it won’t hurt to try. The development of the cases after 1 July 2024 will show if we are ready for this step and whether it will contribute to the optimization of the judicial system or become yet another much ado about nothing.

Author: Tsvetelina Koleva