What Is Mandatory Mediation
Mandatory mediation in Bulgaria does not mean that the parties are obliged to reach an agreement. The legislator introduced a mandatory information session where a mediator from a court mediation centre informs the parties about the advantages of mediation and offers to facilitate negotiations.
The key distinction is:
- Information session — mandatory for the parties; they must attend in person (together with their lawyers).
- Mediation procedure — begins only with the explicit written consent of both parties.
In other words, only the initial contact with a mediator is mandatory. If the parties do not wish to negotiate, they continue with court proceedings. When an information session is scheduled, the court proceedings are not stayed — the case continues in parallel.
Evolution of the Regime — 2024 to 2025
2024 version (effective from 01.07.2024)
- Introduced a mandatory first mediation meeting (not an information session)
- 6 categories of cases where the court must refer parties
- Upon agreement, 3/4 (75 %) of the court fee was refunded
2025 version (effective from 12.07.2025)
- New terminology: mandatory mediation information session (Art. 140a CPC)
- The list is consolidated into 11 categories, including commercial disputes regardless of the claim amount
- Upon agreement at a court mediation centre — 85 % of the fee is refunded
- Upon agreement in mediation in a pending case — 70 % refund
Transitional rule: For statements of claim filed before 12 July 2025, no information session is held under the new provisions.
Which Cases Require a Mandatory Information Session
Under Art. 140a CPC (2025 version), a mandatory information session is scheduled for 11 categories:
- Co-ownership disputes and monetary claims from co-ownership
- Partition (second phase — equalisation of shares)
- Condominium ownership disputes
- Claims for company share upon leaving an LLC
- Claims for liability of LLC manager
- Divorce and parental rights disputes
- Maintenance claims
- Monetary claims up to a certain amount
- Labour disputes
- Intellectual property disputes
- Commercial disputes — regardless of the claim amount (new from July 2025)
Obstacles to Mediation
The court will not refer the parties to a mediation information session if:
- The procedure is excluded for the type of dispute by law
- The first notice has not been served personally on the defendant
- The defendant admits the claim
- There is evidence of violence or risk to the life/health of a child
- Participation would impede the proceedings within a reasonable time
- The parties cannot dispose of the right at issue
- Other circumstances indicate mediation would not lead to a result
Procedure — Step by Step
- Step 1. The claimant files a statement of claim (after 12.07.2025).
- Step 2. The court checks whether the case falls within one of the 11 categories and whether there are any obstacles.
- Step 3. The court schedules an information session before the first open hearing. Proceedings are not stayed.
- Step 4. A mediator from the court mediation centre informs the parties about mediation.
- Step 5. The parties attend in person together with their lawyer. Non-appearance without good cause results in paying costs for 1 hour.
- Step 6. If both parties give explicit written consent, a mediation procedure begins.
- Step 7. Mediation in a pending case may last 1–3 hours, for no more than 2 months.
- Step 8. Upon agreement, it is approved by the court as a court settlement. Up to 85 % of the court fee is refunded.
If the dispute is not resolved, the case continues under the general procedure. There are no negative consequences from unsuccessful mediation.
Costs and Financial Incentives
Costs of the information session
Costs for the information session and mediation in a pending case with a total duration of up to 3 hours are covered by the court budget. Participation is effectively free for the parties.
Court fee refund (2025 version)
| Scenario | Refund |
|---|---|
| Agreement in mediation in a pending case | 70 % of the court fee |
| Agreement after mandatory information session at a court mediation centre | 85 % of the court fee |
Sanctions for non-appearance
A party that fails to appear without good cause pays the costs for 1 hour. If neither party appears, the costs are split equally.
Mediators — Requirements and Registration
Mediators in pending cases
Mediators in pending court disputes may only be lawyers registered with the court mediation centres at the regional courts.
Mediators for voluntary mediation
For voluntary (out-of-court) mediation, a mediator may be a person of any profession registered in the Unified Register of Mediators at the Ministry of Justice (Art. 8 of the Mediation Act).
Legal Force of Mediation Agreements
An agreement on a legal dispute in mediation has the force of a court settlement and is subject to approval by the district courts (Art. 18(1) of the Mediation Act).
- The agreement may include additional matters beyond the subject of the case (Art. 18(2))
- The statute of limitations does not run during the mediation procedure
- An agreement approved by the court has enforcement power and can be enforced through a bailiff
Mediation vs. Arbitration
| Criterion | Mediation | Arbitration |
|---|---|---|
| Decision | Parties reach agreement themselves | Arbitrator renders a decision |
| Mandatory | Information session for 11 categories | Only with an arbitration clause |
| Costs | Up to 3 hours free in court mediation | Arbitration fee (depends on interest) |
| Duration | Up to 2 months (court mediation) | Usually 3–12 months |
| Appeal | Agreement is not appealable | Arbitral award may be set aside |
| Enforceability | After court approval | Directly enforceable |
Specifics for Commercial Disputes
The inclusion of commercial disputes in the scope of the mandatory information session from July 2025 is one of the most significant innovations. Before this amendment, commercial cases were not covered.
Advantages of mediation in commercial cases
- Confidentiality. Unlike court proceedings, mediation is not public. This protects commercial reputation.
- Speed. Mediation can be conducted in hours, while commercial litigation can last years.
- Preservation of business relationships. Litigation usually ends business relations. Mediation allows compromise and continued cooperation.
- Cost savings. Upon agreement, up to 85 % of the court fee is refunded, which in commercial cases with high material interest can be significant.
Practical Tips for Parties
- Prepare in advance. Although the information session is brief, preparation increases the chance of agreement.
- Appear in person. Non-appearance leads to costs and signals unwillingness to cooperate.
- Think of the agreement as a “win-win”. Mediation allows creative solutions that a court cannot order.
- Calculate the financial benefit. Upon agreement, up to 85 % of the court fee is refunded. Add saved legal fees and litigation time.
- Confidentiality. Mediation is confidential — particularly valuable in commercial and family disputes.
Frequently Asked Questions
Conclusion
The mandatory mediation information session is a new tool in Bulgarian civil procedure that creates strong incentives for out-of-court settlement. With free participation (up to 3 hours), up to 85 % court fee refunds, and suspension of limitation periods, mediation is an attractive option for resolving disputes.
This article is for informational purposes only and does not constitute legal advice. For a specific case related to mediation or ADR, contact Innovires Legal for a consultation.
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