Law no 4640/2019 “Mediation on civil and commercial disputes – Further harmonization of Greek legislation with Directive 2008/52/EC of the European parliament and of the council of 21 May 2008 and other provisions” (the Law) was published in the Government Official Gazette on November 29, 2019.

The new law was drafted in order for the Greek legislation to conform with a Supreme Court opinion that mandatory mediation as provided in law 4512/2018 was obstructing the right of access to justice, and also with a decision of the Court of Justice of the European Union (CJEU)

issued following a complaint filed by the European Commission against Greece, doubting whether the first mediation law 3898/2010 (art. 5 par. 1 and 2.2., art. 7), and other pieces of legislation implementing these provisions, were aligned with the Directives 2006/123/EC and 2005/36/EC and finding that, by subjecting the recognition of accreditation of mediators obtained in other EU member states to further conditions, this law was contrary to EU law.

According to the new law, an “initial mediation session” must obligatorily take place before a law suit is heard, in which the mediator informs the parties on the nature of the mediation process. If the parties agree to mediate, they enter into a written mediation agreement and continue also after the first session.

Failure to submit to the court a) evidence that the parties have been informed of the mediation and the first mediation session, and b) evidence for conducting the first mediation session, shall result to the law suit being dismissed as inadmissible. Monetary sanctions may also apply on the party that fails to attend the first mediation session.

The first session is obligatory in the following cases:

1. All first instance disputes before the Single Member and Multi Member first instance court, above a claim of 30,000 euros; it applies also to the non - monetary disputes (e.g. claims aimed at prohibiting the continuation of IP infringement).
2. Where a mediation clause is included in an agreement;
3. Certain family law disputes.

The first session shall be conducted within 20 days after the mediation request of the plaintiff to the mediator, if the parties reside in Greece, and 30 days, if any of the parties resides abroad. The mediation must be concluded 40 days thereafter, unless the parties agree on an extension.

If the parties reach an agreement, this may be submitted to the court secretariat and upon payment of an official fee of 50 euros, it becomes a legal title on which enforcement can be based.

The obligations to inform the plaintiffs on mediation and submit evidence of this to the court apply for all law suits filed as of 1.12.2019.

The provisions on the obligatory first mediation session will enter into force in March 2020 for all disputes apart from family law disputes, for which the law shall enter into law in January 2020.  

It is expected that with these new provisions and the simultaneous introduction of a court fee, on all law suits including those that do not have a monetary claim, mediation shall become an alternative to courts of which the parties shall make the most of, as an opportunity to resolve their disputes in a fast and low cost manner.