When a serious issue arises between business partners, the initial instinct is often the same: call a lawyer, file a lawsuit, resolve it as quickly as possible.
This reaction is understandable. Uncertainty creates pressure. But before stepping into litigation, there are a few things you should know. Some are legal requirements, others are practical realities many business owners only realize too late.
1. You are required to go through mediation before filing a lawsuit
Many partners begin preparing for litigation without being aware of this.
Under Turkish law, disputes involving monetary claims and compensation between shareholders and partners require mandatory mediation before a lawsuit can be filed. If this step is skipped, the court will dismiss the case on procedural grounds. In other words, time and legal costs are incurred, only to be turned away at the door.
Mediation is not an option here. It is part of the legal process itself.
2. Litigation does not resolve disputes. It consumes them.
Those considering litigation often assume: “If I win, the issue is over.”
In partnership disputes, it rarely works that way. During a lawsuit that can last for years, company management is disrupted. Employees are left uncertain. Clients and suppliers begin to notice. Resources are diverted away from business operations toward legal fees and ongoing proceedings.
And when the case finally ends, regardless of who “wins,” both the company and the partnership are often no longer intact.
Ask yourself: Even if you win, what do you want to have left at the end of this process?
3. Everything in court becomes part of the public record
Partnership disputes are conducted through public proceedings. Claims, documents, and defenses are all formally recorded.
Consider how this might affect your clients, suppliers, and employees if the dispute becomes known within your sector. If you share customers, operate in the same market, or rely heavily on corporate reputation, this risk should not be underestimated.
In mediation, however, everything discussed remains confidential and cannot be used as evidence in court. This is not a preference. It is a legal safeguard.
4. Whether you want to exit or feel stuck, there are options
Mediation is not only about “reconciling” the parties.
Even if the decision to separate has already been made, mediation can be used to structure key issues such as share transfers, valuation, non-compete clauses, and transition timelines. In court, you do not make these decisions. The judge does.
If the dispute has created a deadlock, meaning no critical decisions can be made, a structured negotiation process can often be the most practical way to move forward.
5. You lose nothing if mediation does not lead to an agreement
One of the most common questions is: “If I go to mediation, do I give up my right to go to court?”
The answer is clear: no. If the process does not result in an agreement, your right to litigate remains fully intact. Nothing you say during mediation can be used against you in court. Trying mediation does not create any legal disadvantage.
If an agreement is reached, however, the outcome is different. The agreement carries the same legal enforceability as a court judgment. It is binding and can be executed.
Ask yourself: What do you lose by trying?
Which method is right for you?
Not every dispute is the same. In some cases, mediation is appropriate. In others, facilitation or structured negotiation may be more effective. The right approach depends on the nature of the dispute, the communication dynamics between the parties, and the desired outcome.
To better understand which method fits your situation request a preliminary assessment.
Frequently Asked Questions
Is mediation mandatory or voluntary?
Both exist. In disputes involving monetary claims and compensation between shareholders, mediation is a mandatory step before filing a lawsuit. In other types of disputes, it can be used voluntarily.
What happens if the other party refuses to participate?
In mandatory mediation, a party that fails to attend the first meeting may be held responsible for litigation costs regardless of the outcome. In voluntary processes, if participation is not secured, legal remedies remain available.
Is a mediation agreement truly binding?
Yes. A properly executed mediation agreement has the same legal force as a court judgment and can be enforced. In international disputes, it may also fall within the scope of the Singapore Convention, which is recognized in over 50 countries.
References
- Turkish Commercial Code No. 6102, Article 5/A — mevzuat.gov.tr
- Law No. 6325 on Mediation in Civil Disputes, Articles 4 and 18 — mevzuat.gov.tr
- International Mediation Institute (IMI), “Why Mediation?” — imimediation.org
- IFC, “Mediating Corporate Governance Conflicts and Disputes” — ifc.org
- JAMS, “Mediating Complex Corporate Disputes” — jamsadr.com
- UNCITRAL, Singapore Convention on Mediation — uncitral.org
