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Due to an increasing number of conflicts among our diverse global client base, alternative dispute resolution methods like arbitration and mediation have become more appealing than traditional litigation. These approaches are preferred because they are more cost-effective, less time-consuming, fully confidential, and less adversarial.
The Hellenic Parliament has passed a Law 4640/2019 on Mediation in Civil and Commercial Disputes, with the goal of focusing on certain aspects of mediation in civil and commercial matters. The primary objective of this new legislation is to streamline legal proceedings in Greece and provide a fast-track and enforceable resolution for parties who successfully participate in mediation sessions.
Mandatory Mediation
According to Article 6 of the 4640/2019 Law, certain disputes are required to undergo an initial mediation session before they can be referred to the appropriate court. These disputes include: (a) specific family law disputes; (b) all civil and commercial disputes falling within the jurisdiction of Single-Member Courts in Greece involving claims exceeding EUR 30,000; (c) all civil and commercial disputes within the jurisdiction of Multi-Member Courts in Greece; and (d) any disputes arising from agreements that include an explicit mediation clause.
Failure to comply with the mandatory initial mediation session will result in the competent courts rejecting the relevant actions as inadmissible.
Voluntary Mediation
According to Article 4 of the 4640/2019, voluntary mediation is available in the following circumstances: (a) when both parties agree to engage in mediation proceedings; (b) when an agreement between the parties includes a mediation clause; (c) when the law requires mediation proceedings to be initiated; and (d) when another Member-State's judicial authority imposes the initiation of mediation proceedings, provided that such a requirement does not violate Greek public policy provisions.
Lawyers are required to provide written notification to their clients regarding the option of mediation, and whether the specific dispute falls under the mandatory mediation provisions. According to Article 3 of Law 4640/2019, this document must be signed by both the lawyers and the client, and submitted to the competent court when the dispute reaches the relevant procedural stage. Failure to include these documents with the lawsuit filed before the competent court will result in the lawsuit being deemed inadmissible. The main features of mediation proceedings are as follows:
Mediation proceeding
A mediator, who can be appointed by the parties or a Central Committee, conducts the proceedings.
- The mediator must notify the parties of the initial mandatory session at least 5 days in advance by registered letter or electronically, and the first session must take place within 20 days of the mediator being notified of the petition for mediation.
- The parties must attend the proceedings in person along with their lawyers, except for small claims up to EUR 5,000 and consumer protection claims.
- After the first session, the parties may choose to continue with the mediation or refer the case to the courts, and if they choose the latter, they must submit minutes proving the attempt and failure of the mediation.
The mediation proceedings are confidential, and no minutes are allowed to be kept. Parties participating in the proceedings are excluded from being examined as witnesses in the event of an unsuccessful outcome.
The mediation proceedings cannot last more than 40 days following the initial session, but there is a possibility for the parties to agree to a reasonable extension of this deadline
According to Article 8 of Law 4640/2019, an agreement that has been signed by all parties involved the mediation sessions results in an enforceable title following a simple filing of the respective mediation before the competent court.
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