MEDIATION ACT

Prom. SG. 110/17 Dec 2004, amend. SG. 86/24 Oct 2006, amend. SG. 9/28 Jan 2011, amend. SG. 27/1 Apr 2011, amend. and suppl. SG. 77/18 Sep 2018, amend. SG. 17/26 Feb 2019, amend. and suppl. SG. 11/2 Feb 2023

Chapter one.
GENERAL PROVISIONS

Scope of Application

Art. 1. (1) (Prev. text of Art. 1 – SG 11/23, in force from 01.07.2024) This Act shall regulate the relations connected with mediation as an alternative way of settlement of legal and non-legal disputes.

(2) (New – SG 11/23, in force from 01.07.2024) The Act also regulates the mediation procedure for pending court cases.

Concept of mediation

Art. 2. Mediation shall be voluntary and confidential proceedings of out-of-court settlement of disputes whereas a third person – mediator assists the disputing parties to achieve settlement.

Subject of mediation

Art. 3. (1) (suppl. – SG 27/11) Subject of mediation may be civil, commercial, labour, family and administrative disputes related to rights of consumers and another disputes between natural and/or legal persons, including transboundary.

(2) Mediation shall be performed as well as in the cases envisaged in the Penal Procedure Code.

(3) Mediation shall not be performed if by law or another legislation act a different way of settlement is stipulated.

Organisation of mediation

Art. 4. Mediation shall be performed by natural persons. These persons may associate in order to carry out the activity. Persons performing judicial functions in the system of the judiciary shall not perform mediation activities.

Chapter two.
PRINCIPLES OF MEDIATION

Voluntary and equality

Art. 5. The parties shall have equal opportunities to participate in the mediation procedure. They participate voluntarily and may adjourn at any time.

Neutrality and impartiality

Art. 6. (1) The mediator shall not demonstrate partiality and shall not impose a settlement of the dispute.

(2) In the mediation procedure all issues shall be settled by mutual agreement of the parties.

Confidentiality

Art. 7. (1) (prev. text of Art. 07 – SG 27/11) The debates arising form the dispute shall be confidential. The participants in the mediation procedure are obliged to keep secret all the circumstances, facts and documents that have become known to them during the procedure.

(2) (new – SG 27/11) The mediator may not be questioned as a witness regarding the circumstances disclosed to him by the participants and relevant for deciding on the dispute subject to the mediation, except with the explicit consent by the participant, who has disclosed them to him.

(3) (new – SG 27/11) Exceptions to the confidentiality of the mediation shall be allowed in the cases, where:

1. this is necessary for the needs of the penal proceedings or related to the protection of the public order;
2. there is need to ensure protection of children interests or prevent impingement on the corporal or mental inviolability of a certain person, or
3. the disclosure of the contents of an agreement, achieved as a result from mediation, is necessary to enforce and perform the said agreement.

Chapter three.
LEGAL STATUS OF THE MEDIATOR

General Requirements

Art. 8. (amend. – SG 86/06) (1) Mediator may be only a legally competent person who meets the following requirements:

1. has not been convicted for crimes of general nature;
2. has graduated a training course for a mediator;
3. is not deprived of right to exercise a profession or activity;
4. (suppl. – SG 9/11) has a permission for permanent or long term residence in the Republic of Bulgaria, if the person is a foreign citizen;
5. is inscribed in the Unified Register of Mediators to the Minister of Justice.

(2) (In force from 01.01.2007) The requirement under para 1, item 4 shall not apply to citizens of the Member States of the European Union, of the other countries of the European Economic Area and of Switzerland.

(3) (suppl. – SG 77/18, in force from 01.01.2019) The Minister of Justice or an official appointed from the staff of the ministry shall issue a certificate to the mediator for his/her entry in the Unified Register of Mediators.

(4) The Minister of Justice shall approve by an order the organizations, who train mediators. The terms and the manner of their approval, as well as the requirements for the training of mediators shall be set forth by an ordinance of the Minister of Justice.

(5) (amend. – SG 77/18, in force from 01.01.2019) In case the person – candidate mediator, and the organization, applying for training mediators, do not meet the legal requirements, the Minister of Justice or an official appointed from the staff of the ministry shall refuse by an order the entry in the Unified Register of Mediators, respectively the approval. The order may be subject to appeal following the procedure of the Administrative Procedure Code before the relevant administrative court.

Unified Register of Mediators

Art. 8a. (new – SG 86/06) (1) (suppl. – SG 77/18, in force from 01.01.2019) The Minister of Justice or an official appointed from the staff of the ministry shall create and maintain Unified Register of Mediators.

(2) In the Unified Register of Mediators shall be indicated:

1. name, unified civil number (personal number of foreigner), citizenship, education, profession, additional specialisation in the sphere of mediation, the organization, where the person has been trained, command of foreign languages, address and telephone for contact and number of the mediator;
2. deletion and write-off of the mediator;
3. the organization where the mediator has been trained;
4. changes in the circumstances under Art. 8, para 1, items 1, 3 and 4;

(3) The Unified Register of Mediators shall be public.

(4) (suppl. – SG 77/18, in force from 01.01.2019) A person, who has been entered in the Unified Register of Mediators, shall announce in writing before the Minister of Justice or an official appointed from the staff of the ministry any changes in the circumstances subject to entry in 14-days term from their occurrence.

(5) (amend. – SG 77/18, in force from 01.01.2019) Where some of the requirements under Art. 8, para 1, item 1, 3 and 4 drops out, the Minister of Justice or an official appointed from the staff of the ministry shall issue an order, with which deletes the mediator from the Unified Register of Mediators. The order may be subject to appeal following the procedure of the Administrative Procedure Code before the relevant administrative court.

(6) The manner of entry, write-off and deletion in the Unified Register of Mediators shall be determined by the ordinance under Art. 8, para 4.

(7) (amend. – SG 17/19) The information under para 2, item 1 for the unified civil number (personal number of foreigner) shall be provided in accordance with the requirements for protection of personal data.

Fees

Art. 8b. (new – SG 86/06) The Ministry of Justice shall collect fee for entry in the Unified Register of Mediators and for approving the organizations, which train mediators, in amount, determined by a tariff, adopted by the Council of Ministers.

Rules of behaviour of the mediator

Art. 9. (1) (suppl. – SG 86/06) The mediator shall perform his activity diligently and observing the law, good morals, the proceedings and ethic rules of behaviour of the mediator. These rules shall be set forth by the ordinance under Art. 8, para 4.

(2) The mediator shall accept to conduct the procedure only of he can guarantee his independence, impartiality and neutrality.

Obligations and responsibilities of the mediator.

Art. 10. (1) The mediator shall not provide legal advices.

(2) During the procedure the mediator shall observe the position of each of the disputing parties.

(3) The mediator shall leave the procedure if circumstances generating doubt in his independence, impartiality and neutrality arise.

(4) The mediator may not announce to the other participants in the procedure circumstances which concern only one of the disputing parties without the consent of the party.

(5) The mediator shall not be responsible if parties do not achieve settlement.

(6) The mediator shall not be responsible for settlement being not executed.

Chapter four.
MEDIATION PROCEDURE

Opening of the procedure

Art. 11. (1) The mediation procedure shall start by initiative of the disputing parties and each of them may make proposal for the settlement of the dispute by way of mediation.

(2) (new – SG 27/11) The commencement of the mediation procedure shall be deemed the day, in which the parties have explicitly agreed on its commencement, and where such agreement lacks – the day of the first meeting of all participants with the mediator.

(3) (prev. text of Para 02 – SG 27/11) Proposal to settle the dispute by way of mediation may be made as well by the court or other competent body to which the dispute have been referred to for settlement.

(4) (New – SG 11/23, in force from 01.07.2024) In cases provided for by law, the court obliges the parties to participate in a first meeting in a mediation procedure.

(5) (prev. para 3 – SG 27/11, prev. para 4 – SG 11/23, in force from 01.07.2024) The consent of the parties to settle a future dispute by way of mediation may be set as a clause of an agreement.

Effect of the commencement of the mediation to limitation periods

Art. 11a. (new – SG 27/11) No limitation period shall lapse during the mediation procedure.

Participants

Art. 12. (1) A mediation procedure shall be performed by one or more mediators appointed by the parties.

(2) (suppl. – SG 86/06) The disputing parties shall participate in person or by e representative. The authorization shall be carried out in writing.

(3) In the mediation procedure may also participate attorneys-at-law as well as other experts.

Actions of the mediator

Art. 13. (1) Before conduction of the procedure, the mediator shall inform the parties regarding the nature of the mediation and the consequences of it and shall require their written or oral consent for participation.

(2) (amend. – SG 27/11) The mediator shall envisage all circumstances which mat generate to the parties reasonable doubt concerning his impartiality and neutrality, including where the mediator is a person:

1. is a spouse or relative of direct lineage without restriction, of peripheral lineage up to fourth degree or relative-in-law up to third degree to any of the parties or its representative;
2. in cohabitation with a party to the dispute subject to mediation;
3. who has been a representative or proxy of a party to the dispute subject to mediation;
4. in respect of which there are other circumstances causing reasoned doubt to his impartiality.

(3) (new – SG 27/11) The mediator shall sign an impartiality declaration indicating the circumstances referred to in Para 2 for each procedure he is assigned to, and shall hand them to the disputing parties.

(4) (prev. text of Para 03 – SG 27/11) In the curse of the procedure the substance of the dispute shall be clarified, and amicably acceptable variants of settlements shall be clarified and the possible frame of agreement shall be drafted.

(5) (prev. text of Para 04 – SG 27/11) During the described actions the mediator may arrange separate meetings with each of the parties under observing their equal rights for participation in the procedure.

Grounds for suspended the procedure

Art. 14 (1) The mediation shall be suspended:

1. by a mutual consent of the parties or by e request of one of the parties;
2. in case of death of the mediator;
3. in the cases envisaged in Art. 10, Para 3.

(2) (suppl. – SG 86/06, suppl. – SG 11/23, in force from 01.07.2024) If the mediation is being performed during pending proceedings, the parties shall notify immediately the competent body of the suspension of the mediation procedure. When the mediation procedure is a pending court case, the court center coordinator notifies the court about the suspension.

Grounds for dismissing the procedure

Art. 15 (1) The mediation procedure shall be dismissed:

1. with the achievement of agreement;
2. by the mutual consent of the parties;
3. in case of abandoning of the claim by one of the parties;
4. in case of death of a disputing party;
5. in case of dissolution of legal person – a disputing party;
6. (new – SG 27/11) upon expiration of 6 months from the beginning of the proceedings.

(2) The consent of the parties on the dismissing of the dispute shall be expressed clearly and unambiguously.

(3) If the mediation procedure is dismissed, the pending procedure which had been discontinued, shall be renewed following the stipulations of the law.

Chapter five.
AGREEMENT

Form and content

Art. 16. (1) (prev. text of Art. 16, suppl. – SG 27/11) The content and the form of the agreement shall be defined by the parties. The form may be oral, written and written with notary certification of the signatures of the disputing parties. The written agreement shall contain the place and the data on which it is achieved, the names of the parties and their addresses, what they do agree upon, the name of the mediator, the date referred to in Art. 11, Para 2 and the signatures of the parties.

(2) (new – SG 27/11) In the agreement the parties may provide for liability for failure to perform the obligations provided for therein.

Effect of the agreement

Art. 17. (1) The agreement shall bind the disputing parties only and may not be pleaded against third persons who have not participated in the procedure.

(2) (amend. – SG 86/06) The agreement shall bind the parties only for this for what they have agreed upon.

(3) (new – SG 86/06) An agreement, which contradicts or circumvents the law or infringes good morals, shall be invalid.

Enforcement of the Agreement

Art. 18. (New – SG 27/11) (1) (Amend. – SG 11/23, in force from 01.07.2024) The agreement on a legal dispute within the meaning of Art. 1, para 1 of the Act reached in the mediation proceeding has the force of a court settlement and is subject to approval by the district courts in the country.

(2) (New – SG 11/23, in force from 01.07.2024) When the dispute is the subject of a pending court case, the settlement is subject to approval by the court hearing the case, including where the parties have agreed on matters outside the subject matter of the case.

(3) (Prev. para 2 – SG 11/23, in force from 01.07.2024) The court approves the agreement after its confirmation by the parties if it does not contradict the law and good morals. The court listens to the prosecutor’s opinion if he participates as a party to the case.

Chapter six.
MEDIATION IN PENDING COURT CASES (NEW – SG 11/23, IN FORCE FROM 01.07.2024)

Mediation proceedings held in a court center

Art. 19. (New – SG 11/23, in force from 01.07.2024) (1) In the cases and under the conditions stipulated by law, the court obliges the parties to a pending court case to participate in a first meeting in a mediation procedure, which takes place in a judicial mediation center of the relevant court.

(2) Apart from the cases under para. 1 mediation procedure in a judicial mediation center can also be held at the initiative of the parties in a pending court case.

Mediator at the Court Mediation Center

Art. 20. (New – SG 11/23, in force from 01.07.2024) (1) A mediator at a Court Mediation Center can be a person with a legal education who meets the requirements of Art. 8, para. 1 and has undergone additional selection and specialized training in accordance with the procedure specified in the regulation under Art. 25.

(2) At the district courts, lists of mediators are kept at the Court Mediation Center. No fee is charged for listing mediators.

Appointment of mediator

Art. 21. (New – SG 11/23, in force from 01.07.2024) A mediation procedure in a pending court case is carried out by one or more mediators entered in the list of mediators of a Court Mediation Center, which are designated by the court center, unless they are appointed by mutual agreement of the parties.

Carrying out the mediation procedure

Art. 22. (New – SG 11/23, in force from 01.07.2024) (1) In the cases under Art. 19, para. 1 the parties are obliged to participate in good faith in a first meeting in a mediation procedure with a total duration of one to three hours. The mediator can also schedule separate meetings with each of the parties, respecting their equal rights to participate in the procedure.

(2) The day and time of the first meeting with a mediator, for which the parties are notified by the coordinator of the court center, is considered the start of the mediation procedure. The meeting is postponed in the presence of special unforeseen circumstances, about which the party notifies the coordinator. A party may request an adjournment of the meeting only once.

(3) The mediation procedure can continue with the agreement of the parties and after completion of the meetings under para. 1. At the proposal of the mediator and with the agreement of the parties, the procedure may continue outside the mediation court center under the conditions and according to the procedure specified in the Ordinance under Art. 25.

(4) The mediation procedure in a pending court case is terminated:

1. in the cases under Art. 15, para. 1, items 1 – 5;
2. after the expiration of two months from the beginning of the procedure, unless by mutual agreement of the parties it continues beyond this period, but not later than the expiration of 6 months from the beginning of the procedure;
3. when the parties do not reach an agreement;
4. when the parties do not reach an agreement on its continuation.

(5) In the event of the death of a party to the case or the termination of a legal entity – a party to the case, occurring before the completion of the meetings in the procedure under para. 1, the court mediation procedure starts from the beginning with the participation of the legal successor of the party in the case.

Information about the conducted mediation procedure

Art. 23. (New – SG 11/23, in force from 01.07.2024) The mediator provides the court with information about the outcome of the mediation procedure and the parties’ participation in it, subject to the principle of confidentiality and under the conditions and according to the procedure provided for in the Ordinance under Art. 25.

Settlement in mediation proceedings for a pending court case

Art. 24. (New – SG 11/23, in force from 01.07.2024) (1) The agreement reached in a procedure under this chapter shall be concluded in writing.

(2) When the parties wish to have the agreement approved as a court settlement pursuant to Art. 234 of the Code of Civil Procedure, it is approved by the court before which the case on which the mediation procedure was initiated is pending.

(3) When the parties have reached an agreement in relation to the subject matter of several pending cases, it is approved by the court that examines the first initiated case. The parties submit the approved agreement to the other courts, which terminate the proceedings pending before them in whole or in part according to the content of the agreement.

Regulation by secondary legislation

Art. 25. (New – SG 11/23, in force from 01.07.2024) The selection of mediators to the Court Mediation Centers, the procedure for their entry and deletion from the lists of the district courts, their training, mandate and control over their activities, as well as the activities of the center’s coordinators are regulated by an ordinance adopted by the Supreme Judicial Council. The ordinance regulates the amount of fees payable by the parties to the court center and costs in the mediation procedure for pending court cases.

Additional provisions

• 1. (new – SG 27/11) In the sense of this Act „transboundary dispute“ means also:

1. A dispute to which at least one of the parties has its residence or usual residence in a Member State other than the Member State of the residence or the usual residence of any of the other parties at the date, on which:
2. a) the parties have achieved an agreement to use the mediation after the initiation of the dispute, or
3. b) the parties have been invited by the court hearing the lawsuit to use mediation to settle the dispute.
4. Any dispute, in which following a mediation between the parties have been initiated judicial proceedings or arbitration in a Member State other than the one, in which the parties have their residence or usual residence at the date, referred to in Item 1.

For the purpose of Items 1 and 2 the residence shall be determined in compliance with Art. 59 and 60 of Council Regulation (EC) No 44/2001 of 22 December 2000 on jurisdiction and the recognition and enforcement of judgments in civil and commercial matters.

Transitional and concluding provisions

• 1a. (prev. text of § 1 – SG 27/11) Within 6 month period from this Act becomes effective, the Minister of the Justice shall adopt Standards of Training of Mediator, Procedure and Ethic Rules of Behaviour of the Mediator and shall establish and maintain Unified Register of the Mediators.

• 2. The implementation of this Act shall be assigned to the Minister of the Justice.

This Act is adopted by the XXXIX National Assembly on the 2nd of December 2004 and is affixed with the official seal of the National Assembly.

Transitional and concluding provisions
TO THE ACT ON AMENDMENT AND SUPPLEMENT TO THE MEDIATION ACT

(PROM. – SG 86/06)

• 7. In 6-moths term from the entry into force of this Act the persons, who have been entered in the Unified Register of Mediators, shall certify by the respective documents at the Ministry of Justice that they meet the requirements of art. 8, para 1, items 1, 3 and 4. Within this term the persons, who satisfy the requirements under art. 8, para 1, items 1 – 4 and have been trained for mediators in the country or abroad prior to the entry into effect of this Act, may also submit applications for entering in the Unified Register of Mediators.

• 8. The Minister of Justice shall issue the ordinance under art. 8, para 4 in three months term from the entry into force of this Act.
• 9. The Council of Ministers shall adopt the tariff under art. 8b in three months term from the entry into force of this Act.

• 10. Paragraph 1 concerning art. 8, para 2 shall enter into force from the date of entry into effect of the Treaty of Accession of the Republic of Bulgaria to the European Union.

Transitional and concluding provisions
TO THE ACT ON AMENDMENT AND SUPPLEMENTATION TO THE MEDIATION ACT

(PROM. – SG 27/11)

• 11. This Act transposes the requirements of Directive 2008/52/EC of the European Parliament and of the Council of 21 May 2008 on certain aspects of mediation in civil and commercial matters (OJ, L 136 , 24/05/2008)

Transitional and concluding provisions
TO THE ACT AMENDING AND SUPPLEMENTING THE ADMINISTRATIVE PROCEDURE CODE

(PROM. – SG 77/18, IN FORCE FROM 01.01.2019)

• 156. The Act shall enter into force on 1 January 2019, with the exception of:

1. paragraphs 4, 11, 14, 16, 20, 30, 31, 74 and § 105 item 1 on the first sentence, and item 2 which shall enter into force on 10 October 2019;
2. paragraphs 38 and 77, which shall enter into force two months after the promulgation of this Act in the State Gazette;
3. paragraph 79, items 1, 2, 3, 5, 6 and 7, § 150 and 153, which shall enter into force on the day of the promulgation of this Act in the State Gazette.

Transitional and concluding provisions
TO THE ACT AMENDING AND SUPPLEMENTING THE MEDIATION ACT

(PROM. – SG 11/23, IN FORCE FROM 01.07.2024)

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• 10. The Supreme Judicial Council adopts the regulations under Art. 25 of the Mediation Act and under Art. 84a, para. 4 of the Judiciary System Act within three months from the promulgation of the Act in the State Gazette.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .

• 12. The Act enters into force on 1-st of July 2024.