Mediation as a Fast and Effective Means of Resolving Disputes

Mediation is a voluntary and confidential procedure for the out-of-court resolution of disputes. The fundamental principles underlying mediation are voluntariness, equality of the parties, neutrality, impartiality and confidentiality. Exceptions to these principles are permissible where information must be provided to the relevant authorities in connection with criminal proceedings, or in cases concerning the protection of public order, the protection of a child, the prevention of harm to a person, or the enforcement of the agreement reached.

Disputes that may be resolved through mediation include civil and commercial disputes, family and employment disputes, disputes concerning ownership and co-ownership, disputes between partners and members of commercial companies, disputes relating to condominium ownership, consumer rights and intellectual property, administrative disputes concerning consumer rights, cross-border disputes, and other disputes between natural and legal persons. Mediation is not conducted where the law provides for a special procedure for concluding an agreement.

Mediation involves a neutral and impartial third party—the mediator—who assists the parties in finding a solution acceptable to both of them. Mediation may be conducted by one or more mediators, the latter being known as co-mediation. The mediator does not take sides, give advice or impose decisions on the parties. All matters are settled solely by mutual agreement between the participants in the procedure.

The parties participate in person or through an expressly authorised representative. Where the expertise, knowledge and skills of other persons are needed to clarify the dispute between the parties, lawyers, experts, employers, members of various organisations and other specialists may be invited to participate in the procedure. The personal participation of those concerned by the dispute is important, as it enables their interests to be expressed and protected as accurately as possible.

During the procedure, the mediator may hold both joint meetings and separate meetings with each party. These meetings serve to clarify the subject matter of the dispute, present the parties’ positions and interests, and discuss possible mutually acceptable solutions.

The procedure may be suspended in the following circumstances: by mutual agreement or at the request of one of the parties; upon the mediator’s death or where doubts arise as to the mediator’s independence; upon reaching an agreement or by mutual consent; upon the withdrawal or death of one of the parties; or upon the dissolution of a legal entity that is a party to the dispute.

The limitation period for conducting mediation is six months, and its running is suspended under circumstances specified by law.

Through the amendments to the Code of Civil Procedure adopted in 2025, the legislature empowered the court to order the parties to attend a mandatory information session on mediation in the cases specified by law. Initially, the parties are to select a court-appointed mediator included in the list maintained by the relevant court mediation centre. If they cannot agree, the mediator is designated by the centre’s coordinator.

It is important to distinguish between the mandatory information session, attended pursuant to a court summons, and the mediation procedure itself. The parties attend the mandatory information session once, in person and/or with an authorised representative, if they have one. At this session, the court-appointed mediator first explains the mediation procedure and its implications for the pending case.

If, following the mandatory information session, the parties wish to proceed with mediation with a view to concluding an agreement, they are not required to continue working with the mediator appointed through the court mediation centre. The parties may choose another mediator who is not included in the lists maintained by the court mediation centres but is registered in the Unified Register of Mediators maintained by the Ministry of Justice of the Republic of Bulgaria.

This option is provided for in Article 48(3) of Ordinance No. 12 of 28 July 2025 on Mediators and Procedures in Court Mediation Centres, which requires the newly selected mediator to notify the coordinator of the relevant court mediation centre of the parties’ decision to continue the mediation procedure with that mediator rather than with the court-appointed mediator.

It should be noted that the existence of rules governing mandatory court-connected mediation does not restrict the parties’ ability to seek resolution of their dispute through out-of-court mediation, outside the court mediation centres. This applies not only to disputes falling outside the scope of mandatory court-connected mediation, but also to disputes for which such mediation is prescribed.

Mediation may take place at any time after the exchange of pleadings in the case and before the conclusion of the evidentiary phase before the relevant court instance.

An advantage for persons seeking the assistance of a mediator registered in the Unified Register of Mediators maintained by the Ministry of Justice of the Republic of Bulgaria is the prompt out-of-court resolution of disputes. The costs are lower than those payable in potential court proceedings.

When court proceedings end in a settlement, half of the court fee paid is refunded to the claimant. Where the court approves an agreement concluded through mediation, 70% of the court fee paid is refunded to the claimant. Where the agreement is reached through mediation conducted at a court mediation centre following a mandatory information session, the refund is 85%.

The legislature provides the same relief to the parties in respect of the court fee paid for an appeal where the agreement is reached during the appellate proceedings. The costs of the proceedings and of the settlement remain payable by the parties who incurred them, unless otherwise agreed.

Last but not least, the parties’ greater control over the arrangements they negotiate is of considerable importance. Provided that the agreement does not contravene the law or public morals, it may be given legal effect by the court. The agreement binds only the participants in the dispute and has effect solely in respect of the matters agreed between them.

The parties themselves determine the content and form of the agreement. It may be concluded orally or in writing, with or without notarisation of the signatures. In the event of non-performance of an agreement concluded in writing, the parties may take steps to enforce it in accordance with the applicable legal requirements.

An agreement reached through mediation in a legal dispute may be approved by the district court and have the force of a court settlement. Where the dispute is already the subject of pending proceedings, approval is granted by the court hearing the case.

This article addresses selected aspects of the topic and does not constitute an exhaustive analysis.

Author: Lawyer Petya Stoevska , Dr.Sc, 

Certified mediator registered in the Unified Register of Mediators maintained by the Ministry of Justice, 

Registration No. 20261020001.