Ann. SG 110 of 17 December 2004, amend. SG No. 86 of 24 October 2006, amend. SG 9 of 28 January 2011, amend. SG 27 of 1 April 2011, amend. SG 77 of 18 September 2018, amend. SG No. 17 of 26 February 2019, amend. and supplemented by Dz. SG 11 of 2 February 2023, amend. SG 57 of 5 July 2024.
Chapter One.
GENERAL
Scope
Art. 1. (1) (Former text of Art. 1 – SG 11/2023, in force from 01.07.2024) This Law shall regulate the relations related to mediation as an alternative method for resolution of legal and non-legal disputes.
(2) (new – SG 11/2023, in force from 01.07.2024) The Law shall also regulate the mediation procedure in pending court cases.
Concept of mediation
Art. 2. Mediation is a voluntary and confidential procedure for the out-of-court settlement of disputes in which a third person, the mediator, assists the disputing parties to reach an agreement.
Subject of mediation
Art. ( 1) (suppl. – SG 27/2011) Civil, commercial, labour, family and administrative disputes related to consumer rights and other disputes between natural and/or legal persons, including when they are cross-border, may be the subject of mediation.
(2) Mediation shall also be conducted in the cases provided for in the Criminal Procedure Code.
(3) Mediation shall not take place if a law or another normative act provides for another procedure for concluding an agreement.
Organisation of mediation
Art. 4. Mediation shall be carried out by natural persons. Such persons may associate for the purpose of carrying out the activity. Persons performing judicial functions in the judicial system may not carry out mediation.
Chapter Two.
PRINCIPLES OF MEDIATION
Voluntariness and equality
Art. 5. The parties shall have equal opportunities to participate in the mediation procedure. They shall participate in the procedure of their own free will and may withdraw at any time.
Neutrality and impartiality
Art. 6. (1) The mediator shall not show partiality and shall not impose a decision on the dispute.
(2) In the mediation procedure, all matters shall be settled by mutual agreement of the parties.
Privacy
Art. ( 1) (former text of Art. 7 – SG 27/2011) Discussions concerning the dispute shall be confidential. The participants in the mediation procedure shall keep confidential all circumstances, facts and documents which have come to their knowledge in the course of the procedure.
(2) (new – SG 27/11) The mediator may not be questioned as a witness about circumstances that have been entrusted to him by the participants and are relevant for the resolution of the dispute – subject of the mediation, except with the express consent of the participant who has entrusted them to him.
(3) (new – SG 27/11) An exception to the confidential nature of mediation shall be allowed in cases where:
- this is necessary for the purposes of the criminal process or for the protection of public order;
- it is necessary to ensure the protection of the interests of children or to prevent an attack on the physical or mental integrity of a person, or
- the disclosure of the content of the agreement resulting from mediation is necessary for the implementation and enforcement of that agreement.
Chapter Three.
LEGAL STATUS OF THE MEDIATOR
General requirements
Art. 8. (amend. – SG 86/06) (1) A mediator may be only a competent person who meets the following requirements:
- has not been convicted of any offences of a general nature;
- has successfully completed a mediator training course;
- is not disqualified from exercising a profession or activity;
- (suppl. – SG 9/2011) has a long-term or permanent residence permit in the Republic of Bulgaria, if the person is a foreign citizen;
- is entered in the Unified Register of Mediators at the Minister of Justice.
(2) (In force from 01.01.2007) The requirement under par. (1)(4) shall not apply to nationals of the Member States of the European Union, of the other States 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 designated by him/her from 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 order the organisations that train mediators. The conditions and procedure for their approval as well as the requirements for the training of mediators shall be determined by a regulation of the Minister of Justice.
(5) (amend. – SG 77/2018, in force from 01.01.2019) Where the person – candidate for mediator and the organization that applies to train mediators do not meet the regulatory requirements, the Minister of Justice or an official designated by him from the composition of the Ministry shall refuse by order the entry in the Unified Register of Mediators, respectively the approval. The order may be appealed under the Administrative Procedure Code before the relevant administrative court.
Single Register of Mediators
Art. 8a. (New, SG No. 86/2006) (1) (Supplemented, SG No. 77/2018, in force from 01.01.2019) The Minister of Justice or an official designated by him from the Ministry shall establish and maintain a Unified Register of Mediators.
(2) The following shall be entered in the Unified Register of Mediators:
- name, unique citizenship number (personal number of the foreigner), citizenship, education, profession, additional specialization in the field of mediation, organization where the person was trained, knowledge of foreign languages, address and contact telephone number and number of the mediator;
- deletion and removal of the mediator;
- the organisation in which the mediator is trained;
- changes in the circumstances referred to in Art. 1, points 1, 3 and 4.
(3) The single register of mediators shall be public.
(4) (suppl. – SG 77/18, in force from 01.01.2019) A person entered in the Unified Register of Mediators shall apply in writing to the Minister of Justice or an official of the Ministry designated by him for changes in the circumstances subject to entry within 14 days of their occurrence.
(5) (amend. – SG 77/2018, in force from 01.01.2019) Where any of the requirements of Art. (1)(1), (3) and (4), the Minister of Justice or an official designated by him shall issue an order deleting the mediator from the Unified Register of Mediators. The order may be appealed under the Administrative Procedure Code before the relevant administrative court.
(6) The procedure for registration, deregistration and deletion in the Unified Register of Mediators shall be determined by the Regulation under Article 8, paragraph 4.
(7) (amend. – SG 17/2019) The information referred to in paragraph 2, item 1 about the uniform civil number (personal number of a foreigner) shall be provided in compliance with the requirements for the protection of personal data.
Taxi
Art. 8b. (New, SG No. 86/2006) The Ministry of Justice shall collect a fee for entry in the Unified Register of Mediators and for the approval of organisations that train mediators, in an amount determined by a tariff adopted by the Council of Ministers.
Rules of conduct of the mediator
Art. ( 1) (suppl. – SG 86/06) The mediator shall carry out his/her activity in good faith in compliance with the law, good morals and the procedural and ethical rules of conduct of the mediator. These rules shall be laid down in the regulation referred to in Article 8(4).
(2) The mediator shall accept to conduct the proceedings only if he can guarantee his independence, impartiality and neutrality.
Duties and responsibilities of the mediator
Art. ( 1) The mediator may not give legal advice.
(2) During the procedure the mediator shall take into account the opinion of each of the parties to the dispute.
(3) The mediator shall withdraw from the procedure if circumstances arise which would cast doubt on his independence, impartiality and neutrality.
(4) The mediator may not communicate to the other participants in the procedure circumstances which concern only one of the parties to the dispute without the consent of that party.
(5) The mediator shall not be liable if the parties fail to reach an agreement.
(6) The mediator shall not be liable for non-compliance with the agreement.
Chapter Four.
MEDIATION PROCEDURE
Opening of the procedure
Art. ( 1) The mediation procedure shall be initiated by the parties to the dispute, each of whom may make a proposal for the settlement of the dispute through mediation.
(2) (new, SG 27/2011) The commencement of the mediation procedure shall be deemed to be the day on which the parties have reached an explicit agreement for its commencement, and where there is no explicit agreement – the day of the first meeting of all participants with the mediator.
(3) (former para. 2 – SG 27/2011) The court or other competent authority to which the dispute is referred for resolution may also make a proposal for the resolution of the dispute through mediation.
(4) (new – SG 11/2023, in force from 01.07.2024) In the cases provided for by law the court shall oblige the parties to participate in a first meeting in a mediation procedure.
(5) (Former para. (3) – SG 27/2011, former para. 4 – SG 11/2023, in force from 01.07.2024) The agreement of the parties to resolve a possible future dispute between them through mediation may also be agreed as a clause of a contract.
Effect of the start of the mediation procedure on the limitation period
Art. 11a. (new – SG 27/11) No statute of limitations shall run while the mediation procedure is pending.
Participants
Art. ( 1) The mediation procedure shall be conducted by one or more mediators appointed by the parties.
(2) (suppl. – SG 86/06) The parties to the dispute shall participate in the procedure in person or through a representative. The authorisation shall be made in writing.
(3) Lawyers and other specialists may also participate in the mediation procedure.
Actions of the mediator
Art. ( 1) Prior to the mediation, the mediator shall inform the parties of the nature of the mediation and its consequences and shall request their written or oral consent to participate.
(2) (amend. – SG 27/11) The mediator shall be obliged to indicate all circumstances which may give rise to reasonable doubts in the parties as to his impartiality and neutrality, including where the mediator is a person:
- who is the spouse or relative, without limitation, by direct descent, by consanguinity to the fourth degree or by affinity to the third degree of either party or his or her representative;
- living in a de facto conjugal relationship with a party to the dispute – the subject of the mediation;
- who was a representative or attorney of a party to the dispute – the subject of the mediation;
- as to which there are other circumstances giving rise to a reasonable doubt as to his impartiality.
(3) (new – SG 27/2011) The mediator shall sign declarations of impartiality, in which he shall also indicate the circumstances referred to in paragraph 2 for each procedure for which he has been appointed, and shall provide them to the parties to the dispute.
(4) (former para. 3 – SG 27/2011) In the course of the procedure, the nature of the dispute shall be clarified, mutually acceptable options of solutions shall be specified and the possible framework of an agreement shall be outlined.
(5) (former para. 4 – SG 27/2011) In carrying out the said actions, the mediator may schedule separate meetings with each of the parties, respecting their equal rights to participate in the procedure.
Grounds for suspension of the procedure
Art. ( 1) Mediation shall be suspended:
- by mutual consent of the parties or at the request of one of the parties;
- upon the death of the mediator;
- in the cases provided for in Art. 3.
(2) (Suppl. – 86 of 2006, suppl. – SG 11/2023, in force from 01.07.2024) If the mediation is conducted during the pendency of proceedings, the parties shall immediately notify the competent authority of the suspension of the mediation procedure. Where the mediation procedure is in a pending court case, the coordinator of the court centre shall notify the court of the suspension.
Grounds for termination of the procedure
Art. ( 1) The mediation procedure shall be terminated:
- by reaching an agreement;
- by mutual consent of the parties;
- in case of refusal of one of the parties;
- upon the death of a party to the dispute;
- upon dissolution of the legal entity – party to the dispute;
- (new – SG 27/2011) with the expiry of 6 months from the beginning of the procedure.
(2) The consent of the parties to the termination of their dispute must be expressed clearly and unequivocally.
(3) Upon termination of the mediation procedure, the pending proceedings which have been suspended shall be resumed in accordance with the provisions of law.
Chapter Five.
REFERENCE
Form and content
Art. ( 1) (former text of Art. 16, supplemented, SG 27/2011) The content and form of the agreement shall be determined by the parties. The form may be oral, written and in writing with notarial certification of the signatures of the parties to the dispute. The written agreement shall contain the place and date on which it was reached, the names of the parties and their addresses, what they agree, the name of the mediator, the date referred to in Article 11(2) and the signatures of the parties.
(2) (new – SG 27/2011) The parties may provide in the agreement for liability for non-performance of the obligations provided for therein.
Effect of the Agreement
Art. ( 1) The agreement shall be binding only on the parties to the dispute and may not be opposed by persons who have not participated in the procedure.
(2) (amend. – SG 86/06) The agreement shall bind the parties only for what they have agreed.
(3) (new, SG No. 86/2006) An agreement which contravenes or circumvents the law, as well as when it violates good morals, shall be null and void.
Enforceability of the Agreement
Art. 18. (New, SG 27/2011) (1) (amend. – SG 11/2023, in force from 01.07.2024) An agreement on a legal dispute within the meaning of Art. 1 of the Act, reached in a mediation procedure, shall have the force of a court settlement and shall be subject to approval by the district courts in the country.
(2) (new – SG 11/2023, in force from 01.07.2024) Where the dispute is the subject of a pending lawsuit, the agreement shall be subject to the approval of the court hearing the case, including where the parties have agreed on matters outside the subject matter of the lawsuit.
(3) (former paragraph 2 – SG 11/2023, in force from 01.07.2024) The court shall approve the agreement after its confirmation by the parties, if it does not contradict the law and good morals. The court shall hear the opinion of the public prosecutor if he is a party to the proceedings.
Chapter Six.
MEDIATION IN PENDING COURT CASES (NEW – SG 11/2023, IN FORCE FROM 01.07.2024)
Mediation procedures conducted in a judicial centre
Art. 19. (New, SG No. 11 of 2023, in force as of 01.07.2024, declared unconstitutional by RCC No. 11 of 2024 – SG No. 57 of 2024) (1) In the cases and under the conditions provided for by law, the court shall oblige the parties in a pending court case to participate in a first meeting in a mediation procedure, which shall be carried out in a court mediation centre of the respective court.
(2) Except in the cases referred to in par. 1, a mediation procedure in a court mediation centre may also be held at the initiative of the parties to a pending court case.
Mediator at the Judicial Mediation Centre
Art. 20. (new – SG 11/2023, in force from 01.07.2024, declared unconstitutional by RCC No. 11/2024 – SG 57/2024) (1) A person with legal education who meets the requirements of Art. 1 and has undergone additional selection and specialised training in accordance with the procedure laid down in the Regulation under Art. 25.
(2) The district courts shall maintain lists of mediators at the judicial mediation centres. No fee shall be charged for listing mediators.
Designation of mediator
Art. 21. (new – SG No. 11 of 2023, in force from 01.07.2024, declared unconstitutional by RCC No. 11 of 2024 – SG No. 57 of 2024) A mediation procedure in a pending court case shall be conducted by one or more mediators registered in the list of mediators of a court mediation centre, who are appointed by the court mediation centre, unless they are appointed by common agreement of the parties.
Conduct of the mediation procedure
Art. 22. (new – SG 11/2023, in force from 01.07.2024, declared unconstitutional by the RCC No. 11/2024 – SG 57/2024) (1) In the cases under Art. 19, par. (1) the parties shall be 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 may 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, notified to the parties by the coordinator of the judicial centre, shall be considered as the beginning of the mediation procedure. The meeting shall be postponed in the event of special unforeseen circumstances of which the party shall notify the coordinator. A party may request a postponement only once.
(3) The mediation procedure may continue by agreement of the parties after the completion of the meetings referred to in par. 1. On the proposal of the mediator and with the consent of the parties, the procedure may be continued outside the court mediation centre under the conditions and in the manner set out in the Regulation under Article 25.
(4) Mediation proceedings in a pending court case shall be terminated:
- in the cases referred to in Article 15, par. 1, т. 1 – 5;
- after the expiry of two months from the beginning of the procedure, unless by common agreement of the parties it continues beyond that period, but not later than the expiry of 6 months from the beginning of the procedure;
- where the parties fail to reach an agreement;
- where the parties do not agree on its continuation.
(5) In the event of the death of a party to the proceedings or the dissolution of a legal entity party to the proceedings occurring prior to the completion of the meetings in the proceedings under par. (1), the judicial mediation procedure shall start anew with the participation of the successor of the litigant.
Information on the mediation procedure
Art. 23. (new – SG 11/2023, in force from 01.07.2024, declared unconstitutional by RCC No. 11/2024 – SG 57/2024) The mediator shall provide the court with information on the outcome of the mediation procedure and the participation of the parties in it in compliance with the principle of confidentiality and under the conditions and in accordance with the procedure provided for in the Regulation under Art. 25.
Mediated settlement in a pending court case
Art. 24. (New, SG No. 11 of 2023, in force from 01.07.2024) (1) (Declared unconstitutional by RCC No. 11 of 2024 – SG No. 57 of 2024) The agreement reached in a procedure under this Chapter shall be concluded in writing.
(2) Where the parties wish the agreement to be approved as a court settlement pursuant to Article 234 of the Code of Civil Procedure, it shall be approved by the court before which the mediation proceedings are pending.
(3) Where the parties have reached a settlement in relation to the subject-matter of several pending cases, it shall be approved by the court hearing the first case. The parties shall submit the approved settlement to the other courts, which shall terminate the proceedings pending before them in whole or in part according to the content of the settlement.
Sub-legislation
Art. 25. (new – SG 11/2023, in force from 01.07.2024), Declared unconstitutional by the RCC No. 11 of 2024 – SG 57 of 2024) The selection of mediators to the judicial mediation centres, 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 coordinators of the centres shall be regulated by a regulation adopted by the Supreme Judicial Council. The ordinance shall regulate the amount of fees payable by the parties to the judicial centre and the costs of the mediation procedure in pending court cases.
Additional provisions
- 1. (New, SG 27/2011) For the purposes of this Law “cross-border dispute” shall also mean:
- A dispute in which at least one of the parties is domiciled or habitually resident in a Member State other than the Member State of domicile or habitual residence of any of the other parties on the date on which:
(a) the parties have agreed to use mediation after the dispute arose, or
(b) the parties have been invited by the court seised to use mediation to settle the dispute.
- A dispute in which, following mediation between the parties, court proceedings or arbitration are commenced in a Member State other than that in which the parties were domiciled or habitually resident on the date referred to in paragraph 1.
For the purposes of paragraphs 1 and 2, domicile shall be determined in accordance with Articles 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 Final Provisions
- 1a. (Former § 1 – SG 27/2011) Within 6 months from the entry into force of the Act, the Minister of Justice shall adopt standards for mediator training, procedural and ethical rules for mediator conduct and shall establish and maintain a Unified Register of Mediators.
- 2. The implementation of the law shall be entrusted to the Minister of Justice.
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The law was adopted by the XXXIX National Assembly on 2 December 2004 and is sealed with the official seal of the National Assembly.