Mediation in Greece
Greek Law 4640/2019 was enacted on a date that followed almost a decade since the first appearance of the Institution of Mediation in Greece, and nearly two years after a previous legislative attempt that did not come into effect. The initial mediation Law in 2010, which was a translation of EU Directive 2008/52/EC, included the Code of Conduct for Mediators and Code of Ethics. The second attempt in 2018 amended the first mediation Law and introduced the concept of “mandatory mediation” for certain cases that were mediatable, including family, car accident, neighbor, financial, banking, intellectual property, and trademark cases. The new Law 4640/2019, which came into effect during a socio-economic crisis in Greece, is a milestone in the promotion of a complete and out-of-court dispute resolution system.
Mandatory mediation is an important aspect of this law, as the institution was not well-known in Greece and needed to be made mandatory to be widely recognized. The structured promotion of mediation aims to provide citizens with access to a quick, easy, and affordable method of resolving disputes outside of the courtroom, thereby reducing court congestion and expediting the resolution of cases. The timing of this development is appropriate, given international trends and best practices that promote alternative ways of resolving disputes. A retrospective analysis of the ten years since the introduction of mediation in Greece is necessary to understand why the institution faced strong resistance and how it is perceived today.
The promotion of civil, commercial, and family mediation in Greece began to gain traction in 2018 when the Greek Legislature attempted to make it mandatory, albeit within the bounds of constitutional rights to appear before a natural judge. The first effort to introduce mandatory mediation was made in January 2018 with Article 182 of Law 4512/2018. This provision required parties to attempt to resolve their disputes through mediation before engaging in in-court discussions. Failure to comply resulted in the claim being deemed inadmissible, and the claimant would lose the case for typical reasons.
However, this provision was limited to specific cases, such as disputes over intangible assets, claims of car damage (excluding injuries), and disputes over professional service fees. Family disputes, except for divorce nomination and recognition of paternity, as well as disputes over compensation for patients or their relatives against doctors, infringement of trademarks, patents, industrial designs, and financial disputes were also included. Despite being a groundbreaking change and a significant innovation for the establishment of mediation, there were strong reactions and disputes regarding the implementation of the law.
Contemporary trends indicate that we inhabit a globalized milieu where both individuals and enterprises are swiftly and proficiently moving. There is a high anticipation, particularly in the realm of Justice, that any disputes that may arise should be settled expeditiously and economically.
A quick overview of the new Mediation Law 4640/2019
The concept of mediation has gained widespread popularity globally due to its ability to place the power in the hands of the parties involved, with a neutral third party, the mediator, assisting them in reaching their true interests rather than being anchored to their positions.
As outlined in the renowned book “Getting to Yes”, parties often become entrenched in their positions, which is counterproductive as positions can be readily altered. Additionally, parties may not have a clear understanding of their interests, or may be unable to distinguish them from their positions, leading to confusion. The mediator’s role is to aid in educating and training parties to identify and understand their interests and needs.
In Greece, mediators must be accredited by the Ministry of Justice. This involves the completion of an 80-hour mandatory course, passing examinations administered by the training entity and the Ministry, and holding a degree of higher education. Once these requirements are met, mediators are added to the Ministry’s Mediators Catalogue and may be selected for civil, commercial, or other mediations. Mediators are also required to participate in lifelong learning programs every three years.
The new Mediation Law 4640/2019 in Greece recognizes two kinds of mediation: voluntary mediation for any civil-commercial case that is “mediatable” and the mandatory first attempt session of mediation. In the latter case, the compulsory stage of mediation is limited to one initial session. If the parties do not want to continue with mediation proceedings, they are free to move on with court proceedings.
Under the new mediation law, the mandatory initial session of mediation applies only to limited cases, such as family cases (excluding those marital disputes that cannot be mediated), claims-dispute with a price over 30,000 euros, and disputes originating from contracts where there is a written mediation agreement or a valid mediation clause.
One of the key benefits of mediation is that in the case of successful dispute resolution, a “minute of successful resolution” is drawn up, and this record can be submitted by any of the parties at any time to the Registrar of the Court of First Instance. With a low-cost mediation procedure and a small fee of 50 euros for the mediation minutes registry at the above court, the parties hold an enforceable title due to Article 904 of the Greek Procedural Code.
The mediation procedure is described in Articles 5-7 of the new law, and there are some written formalities that must be performed, failure to comply with which will lead to the loss of the case if the mediation does not end up successfully. If the parties cannot choose a common approval mediator, the Central Committee of the Ministry of Justice appoints the neutral third, the mediator, from the Catalogue where all Greek mediators are listed, based on their professional residence.
There are time limits for both the main mediation procedure and the initial mandatory session, as the main reason for a successful institution is to resolve disputes quickly and with a low-cost procedure. Therefore, the mediation procedure must end promptly.