The Turkish legal system is based on civil law. The adversarial judicial system is implemented for cases in accordance with the relevant articles of the Civil Procedure Code (the “CPC”). Written petitions, statements and evidence have significant importance in terms of the nature of the process. The principles of Turkish law are presented in writing. In addition, oral arguments are supported by statements during the hearing.

In the Turkish legal system, the courts have defined powers. The courts are divided into three main judicial branches: judicial; administrative; and constitutional. The judicial branch handles criminal cases and private law disputes. It is divided into civil courts of peace, civil courts of first instance, criminal courts, labour courts, family courts, commercial courts and consumer courts.

The administrative branch resolves disputes involving public administration. Administrative courts and tax courts are the foundation of this judicial branch. Decisions from these courts can be appealed to the BIM and the Council of State. The process starts with the plaintiff filing a petition with the court. The defendant is obliged to respond within two weeks of being notified of the lawsuit being filed. The length of these processes may vary depending on the court and the subject of the case. It is two months in simple trial procedures. In criminal cases of first instance, a target of finalising within 300 to 390 days has been set.

Hearings are open to a certain extent. Within the scope of the principle of publicity, it is possible for third parties who are not a party to the proceedings to observe the proceedings and learn the judgment rendered. However, there are some exceptions to this.

In cases where public morality or public security makes it absolutely necessary for some or all of the hearings to be held in secret, the court will decide in private. Hearings in juvenile courts are closed in accordance with the Child Protection Law. Access to case files is also restricted and they are not open to the general public.

Article 3 of the Attorneyship Law sets out the requirements for legal representatives to appear in courts in the country. Legal representatives have to:

• be a Turkish citizen;
• have graduated from one of the law faculties in Türkiye or be a graduate of a faculty of law in a foreign country and passed examinations in extra courses in the curriculum of Turkish faculties of law;
• have completed an apprenticeship and received an apprenticeship completion certificate;
• have a legal domicile in the jurisdictional area of the bar association in the directory registration is being sought in; or
• not have a status that is unfit for attorneyship under existing law.

Legal representatives also have to comply with the Attorney Partnership Regulation and the foreign capital incentive legislation specified in Article 44 of the Attorneyship Law.

A foreign lawyer may contribute to the litigation process provided that they work together with the Turkish lawyer. For law partnerships, the partners are not required to be registered with the bar association. Parties may appoint a foreign lawyer for arbitration proceedings. If there is an international treaty or special arrangements with foreign lawyers, temporary authorisation may be granted.

There is no specific regulation for litigation funding by a third-party funder. However, it can be provided in international arbitration proceedings in line with the international arbitration law to which Türkiye is a party and regulations such as the New York Convention.

Third-party funding is available in commercial litigation as well as international arbitration cases, compensation cases and intellectual property cases.

Third-party funding is available for plaintiffs and defendants. Both parties will have to apply to third parties. Defendants may require third-party funding for defence costs, counterclaims, etc.

There are no minimum and maximum amounts a third-party funder will fund. In general, it is possible to determine an upper or a lower limit depending on the subject matter of the case. Third-party funders also determine the amount based on the success rate of the case. As third-party funding is regulated by contract, the parties can set limits between themselves and limits can be set freely under the principle of freedom of contract.

Third-party funders may provide funding for lawyer fees; costs of court proceedings (such as application fees and hearing fees); costs for expert witnesses or evidence gathering; travel and communication costs; and research and analysis costs where necessary. In addition, third-party funders set costs according to the success rate of the case.

Lawyers’ fees in Türkiye are regulated in two ways: the fee that the lawyer receives for the service provided and the success fee. However, there are some success fee limitations. The assets or rights obtained as a result of the lawsuit won by the plaintiff cannot be transferred to the lawyer. However, in the case of a contingency fee, the amount that the lawyer earns based on success can be up to 25%.

Turkish law does not set a specific time limit by when a party to the litigation should obtain third-party funding. However, in practice, third-party funders prefer to be present at the beginning of the case because it means legal risks can be identified earlier on.

The plaintiff may send a notice to the defendant and request resolution of the problem. It is not necessary to file a lawsuit if the defendant complies with these requests before the lawsuit. Mediation has been made compulsory in Turkish law for labour law and commercial cases.

In cases where mediation is mandatory, it is not possible for the parties to file a lawsuit without using this method. Before filing a lawsuit, the parties are required to cover the costs of the lawsuit and pay the necessary fees. This is a prerequisite for the commencement of the proceedings. If these costs are not met, the case will be rejected.

When initiating the litigation process, the parties should pay attention to the statute of limitations. Where there is a failure to apply for mandatory mediation in terms of these requirements, the case is procedurally dismissed. Although advances on expenses are a condition of action, advances on evidence are not listed as a condition of action. Within the scope of Article 120 of the CPC, if the advance on expenses is not deposited, a definite period of two weeks to deposit it and the legal consequences that will occur if it is not deposited should be specified.

If it is not paid within the two-week period, the case is dismissed procedurally. If the defendant does not respond, the non-response is taken into consideration. Although the potential defendant’s failure to respond is not subject to any sanction, it has an impact on the course of the case.

Under Article 146 of the Code of Obligations, every debt is subject to a statute of limitations of 10 years, unless otherwise provided by law. The ordinary limitation period specified in the Code of Obligations is used not only within the scope of this law but also for debts for which there is no special regulation in terms of other laws.

Extraordinary statutes of limitation also exist and are specifically prescribed. The parties must bring this process forward themselves. The statute of limitations expires after two years, and in all cases 10 years, starting from the date on which the injured party and the indemnity obligor learnt about it.

There are general and special jurisdiction requirements. In general, the defendant’s domicile is authorised. However, there are also special jurisdiction rules. Under Article 10 of the CPC, for claims arising from a contract, the place of performance of the contract may have competence. Under Article 16 of the CPC, for claims arising from torts, the court of the place where the tortious act was committed or the place where the damage occurred has competence.

Labour and insurance disputes are filed in the court where the work is performed or the insurance policy is issued. For consumer cases, the court of the consumer’s domicile is authorised. The parties may conclude a written jurisdiction agreement regarding the jurisdiction of the court. It should not be contrary to public order and mandatory provisions. If there is more than one defendant, it can be filed in the place of residence of any of the defendants. For foreigners residing abroad, it is possible for the trial to be heard in Türkiye if a property is located in Türkiye or a tort or contract occurs in Türkiye.

The first document that must be submitted in order to commence a lawsuit is the statement of claim. The plaintiff is obliged to deposit the amount to be determined in the advance on costs with the court cashier when filing a lawsuit.

Subsequent amendments are possible, but this is subject to conditions. The statement of claim may be freely amended until the preliminary examination hearing is completed. Amendments to be made after the preliminary examination hearing are subject to the court’s discretion. Subsequently added claims cannot be added through amendment meaning a new litigation process must be initiated. If there is a defect in form, a period of time is given to remedy this defect.

The lawsuit petition is served to the defendant by the court. It is indicated in the notification envelope that the defendant will respond to the lawsuit within two weeks under Article 122 of the CPC. Notifications are made to the addressee themselves if they are a natural person and to the person or persons authorised to represent the legal entity if they are a legal entity.

Under Article 10 of the CPC on notification, notification will be made to the last known address of the person to be notified. Notification is the responsibility of the court but may be requested by the plaintiff upon the plaintiff’s application and served by post. If the defendant is abroad, notification will be made in accordance with international treaties pursuant to Article 25 of the Notification Law.

Türkiye is a party to the Hague Notification Convention and so the notification agreement between the parties is made accordingly. If the address of the defendant cannot be determined, notification will be made by announcement in accordance with Article 28 of the Notification Law.

The defendant must file a reply within two weeks from the notification of the statement of claim. The court starts to examine the situation in the absence of a reply petition. A defendant who does not file a reply petition potentially faces expanded claims and defences during the litigation process.

Even if the defendant does not appear before the court, the hearing takes place in their absence. However, due to the principle of due process, the defendant is obliged to be given the opportunity to defend themselves. The defendant may appeal the decision within two weeks of being notified of the decision.

Class actions are possible and are most commonly seen in the context of consumer and labour law disputes. In terms of class actions in consumer disputes, Consumer Law No 6502 is relevant. Under the Consumer Law, consumers can apply to protect their collective interests against transactions. In order to file a class action, the claims must be similar and the person representing their interests must have the authority to do so.

Class actions in labour disputes usually resolve around issues of unfair termination or a violation of labour rights contained in the Labour Law.

In the Turkish legal system, class actions are restricted in other areas.

The requirements to provide clients with a cost estimate of the potential litigation at the outset are contained in the Lawyers Law and the CPC. The principle of transparency requires information about potential costs to be given.

Lawyers have an obligation to inform their clients about legal fees, court costs and any subsequent consequences. They should provide information about the financial risks and, in the event of high costs, suggest alternative solutions.

It is possible to file interim applications. The parties may request injunctive relief, interim injunctive relief and evidence from the court in order to protect their interests.

Unless otherwise agreed, during the arbitration proceedings, the arbitrator or the arbitral tribunal may, upon request, order interim injunctive relief or discovery of evidence. As stated in Article 390 of the CPC, interim injunctive relief will be requested from the court having jurisdiction and competent jurisdiction on the merits, or from the court where the case is heard after the lawsuit is filed.

During the interim application process, the party requesting the injunction must apply to the court with a petition explaining the reasons for the request and the situation. A decision is made on the request based on the evidence presented and the arguments of both parties. Interim applications are usually made in circumstances where the situation requires immediate action. Decisions rendered in interim applications can be appealed.

Parties may request an early ruling on certain issues or request that the request be rejected prior to the trial. It takes place during the preliminary preparation phase. The party requesting early judgment must present evidence supporting the request for early judgment. If the court finds this evidence sufficient to establish the relevant facts, it may grant an early judgment.

As a result of the request for the case to be dismissed, the other party may file a request for dismissal of the case based on the grounds of non-existence, inadmissibility and procedural deficiencies. Upon this request, the court may request a hearing to allow both parties to present arguments. In both of these cases, the court will exercise its discretion as to whether or not to accept the application.

Requests for savings made before the hearing takes place are made to facilitate case progression. A precautionary injunction may be applied for in situations that will make it significantly difficult or completely impossible to obtain the right with a change that may occur as specified in Article 389 of the CPC, or that will be inconvenient to delay or that are thought to cause serious harm.

The precautionary attachment specified in the Enforcement and Bankruptcy Law may also make this request on the debtor’s assets if there is a situation that causes the creditor’s receivable to be at risk. The request for dismissal of the case on the merits can also be counted among these requests. If the parties are not ready for the hearing, they may request a postponement.

Certain issues may be requested to be resolved at the preliminary examination stage so that pre-litigation issues can be resolved and temporary legal protection requests can be made. They may apply to the court for the determination of material facts. It is possible to resort to this method in cases where evidence is lost. An objection of lack of jurisdiction can be made for the court where the lawsuit is filed. These objections are in the nature of a first objection and must be made at the same time as notification of the petition.

A party that is not named as a plaintiff or defendant in the lawsuit may participate in the lawsuit under certain conditions. Third parties may participate in the lawsuit in order to protect the interests of one of the parties in the lawsuit. They may intervene to assist a party if they will be affected by the outcome of the case. In the case of a party not named as a plaintiff or defendant joining the lawsuit, it is not a party to the lawsuit but may request to participate in the lawsuit and claim rights for itself.

The obligation to deposit collateral is specified in Article 84 of the CPC. The obligation to deposit collateral arises when a Turkish citizen who does not have a habitual residence in Türkiye:

• files a lawsuit;
• participates in the lawsuit as an intervener or pursues the lawsuit alongside the plaintiff; and
• certifies that the plaintiff is in insolvency due to reasons such as the existence of a certificate of incapacity to pay debts, the existence of concordat or restructuring proceedings for conciliation purposes, the existence of a certificate of insolvency, etc.

The obligation to deposit collateral during the trial of the lawsuit arises if this obligation exists for all plaintiffs.

To initiate this process, the defendant must submit a written application containing their request to the court. In assessing the request, the court considers whether the conditions in Article 84 of the CPC are present. If the court deems it necessary for the defendant to deposit a security, it sets a deadline and the case may be dismissed if the security is not deposited.

Courts usually set costs depending on the outcome of the application. The outcome of the court case can make a difference to the payment of costs.

If the applicant files an application and loses, it will have to pay the costs associated with the application. Interim applications or applications by way of petitions usually involve urgent matters that need to be resolved before a hearing.

The length of time it takes for the court to deal with the application or petition varies depending on the nature of the matter. For non-urgent applications, the timing of the hearing may be extended.

For urgent applications, convincing reasons must be contained as part of the request. Temporary measures of protection may qualify. The parties must have suffered irreversible damage, serious financial loss, or serious security problems. Precautionary measures in urgent cases preventing the disposition of assets may be approved.

The judge may order discovery to obtain information about the circumstances of the dispute. In civil cases, as a rule, there is a principle of production by the parties. In other words, the party filing a lawsuit or the defendant states in its petition which evidence it will prove.

As Türkiye has a civil law legal system, a long-term discovery situation does not occur. If the request to submit the documents is accepted by the court and the parties refrain from submitting them, it is possible to say that the other party defends its claims about the content of the document.

In the application of evidence identification, if there is a danger of loss of evidence upon the request of one of the parties, it can be protected by having it identified. Expert examination is a frequently used method in cases requiring technical knowledge. Under Articles 240 to 265 of the Code of Criminal Procedure (the “CCP”), the examination of witnesses, takes place in the courts and records are kept.

It is possible for a third party who is not a party to the case to obtain evidence. However, this request is made through the court. Third parties may obtain discovery if there are documents that will contribute to the solution of the case specified in Article 221 of the CCP. However, they must submit the request and deliver the documents. However, due to the prohibition of evidence against them, they may refrain from delivering documents that will harm them.

Third parties are considered witnesses. Witnesses take an oath and make their statements before the court. Expert opinions are another way of obtaining evidence from third parties. In cases requiring technical knowledge, the opinions of experts are sought. If third parties refrain from being expert witnesses or fail to deliver the document, coercive measures are applied. Disciplinary fines or compulsory appearances are possible. These processes are usually carried out under the supervision of the court.

There is no widespread discovery practice in Turkish law. It is possible to submit evidence and documents in line with certain procedural rules. Parties are required to submit the documents that are relevant to the resolution of the case. If the other party requests a document, it must state the justification for this request.

Where the requesting party does not provide a reasonable justification, the situation claimed by the requesting party is accepted. From the moment the lawsuit is filed, the parties can present their evidence. If new evidence emerges during the course of the case, it can be presented to the court according to the nature of the situation. The court has control over the evidence-gathering process.

Specific deadlines have been set for the collection and presentation of evidence in court proceedings. The parties are obliged to submit the evidence they have to the court.

The evidence may be written documents, witness statements, expert reports and discoveries and other material evidence. The court may order the submission of the documents after determining and approving their relevance to the case under Articles 219 and 220 of the CCP. Witnesses give a declaration under oath and these statements are evidence under Articles 226 to 287 of the CCP.

The parties may object to the expert’s report. However, expert reports are important evidence. The main reason for the discovery decision is to make the most accurate determination by examining the material evidence on site. It is forbidden to use illegal evidence in these evidential determinations in accordance with Article 189 of the CCP. Evidence significantly affects the outcome of the case, so it is important that the evidence is used correctly and obtained in accordance with the law.

Article 36 of the Attorneyship Law specifies there is attorney and client confidentiality. Lawyers are obliged to keep the information they learn as part of their profession confidential. The lawyer is under this obligation during the period of legal service.

The lawyer cannot disclose information that is to the detriment of the client. However, there are some exceptions to this. If the lawyer knows about a criminal act their client has committed, it is essential that they do not get involved in the crime and act in accordance with the law.

There are distinctions between independent and in-house counsel in terms of confidentiality. Independent lawyers are bound by the principle of confidentiality in all transactions. However, in-house counsel are subject to different approaches in some specific areas due to their position as employees within the company.

Lawyers are obliged to keep the information obtained in the course of their profession confidential within the scope of the prohibition of testifying (Article 37 of the Attorneyship Law), and they cannot act as witnesses.

Parties may refrain from the production of documents due to certain circumstances set out in the CPC. In line with certain rights that the parties have, they may refrain from doing so in order to protect themselves, especially their personal rights, confidentiality and professional secrets.

In terms of personal and family confidentiality as specified in Article 220 of the CCP, a party may refrain from submitting the document if it is deemed that it will seriously harm their private life or jeopardise their family and character. They may also refrain from submitting documents in cases that would reveal their professional and commercial secrets and create an obligation to keep them confidential.

In addition, it is prohibited to produce documents that are state secrets for the security of the state. It is also forbidden to use documents obtained unlawfully under Article 189 of the CCP. Due to the prohibition on presenting evidence against oneself, it is possible that someone may not submit documents that will result in adverse consequences for them.

In order to request an interim measure, certain conditions must be met. The court may order interim protection measures to prevent a party from being harmed. In order to request these measures, the legal interest must be protected, there must be a clear need, and it must be concluded that this measure is lawful and necessary.

Among these types of measures, precautionary measures are regulated under Article 389 of the CPC. Precautionary measures are used to protect the rights of the parties. It is applied in the form of financial measures and measures to stop the activity. Measures are also applied on assets. When a situation such as the sale or transfer of assets occurs, a creditor may request this measure if they cannot receive their receivables. By applying asset freezing injunctions, the protection of the financial interests between the parties is taken into consideration. The purpose of these measures is to balance the interests of the parties and prevent possible damages.

It is possible to apply for an interim injunction in urgent situations. As stated in Article 389 of the CPC, the party requesting an injunction must prove that it will suffer significant and irreparable damage.

If there are valid grounds for granting the injunction, it is not a long-term procedure. Turkish law has a system of on-call judges. It is therefore possible to apply to the court under any circumstances and a decision can be made according to the urgency of the situation.

Injunctive relief can be requested ex parte. If the party requesting injunctive relief proves that the delay of the request will cause harm, the court may issue an injunction without hearing the other party and in the absence of the other party. After the ex parte injunction is granted, the other party is notified of the decision.

When granting a preliminary injunction, the court may request collateral or similar assets to secure the rights of the other party if it later transpires the injunction is not justified. This amount is determined according to the magnitude of the damage. Where the other party is not aware of this measure, the court has the authority to demand security. However, if there is urgency in resorting to this method, the court may issue an injunction without requesting security.

If the interim injunction is to be applied for assets in other countries, it is applied by evaluating the national laws and international norms of the countries. There must be recognition between countries. The decisions of the Turkish courts must also be accepted on the basis of that country. It is possible to say that such measures are dependent on international law and the domestic law of the relevant countries.

Enforcement against third parties is possible, but there are certain conditions. In order to request enforcement against third parties, these persons must have a direct impact on the property or right that is the subject of the lawsuit. If the third party acts with the intention of adversely affecting the case proceedings, a preliminary injunction will be issued against them.

Certain sanctions are imposed against persons who do not comply with the court’s decision. If the person who does so violates the injunction, they may be held responsible for the damage suffered by the other party and may be held liable for compensation.

It is possible to apply for enforcement to fulfil the interim injunction. If the person who does not comply with this rule acts against the authority of the court, other measures may be applied.

Court proceedings are oral and written. The lawsuit is initially filed with a written petition stating the plaintiff’s claims, allegations and evidence. The defendant then submits a reply petition stating their claims.

The court sets a hearing date after examining these petitions. Hearings are usually open and oral statements are also possible at this stage. During the hearing, the court listens to the witnesses and experts presented by the parties.

The court makes a decision after these processes. It justifies the decision and notifies the parties in writing. According to this decision, the parties may apply for appeal and cassation respectively. These processes are usually conducted in writing but if deemed necessary, a hearing may be held.

There are provisions under the CPC and related legislation on case management hearings. Court proceedings include procedures related to hearings, interim applications and court proceedings. The short hearing system includes interim requests and interim measures. In the petition, the parties specify their requests for interim measures or interim requests.

After the court sets a date for a short hearing, they present their views in a fast-track process. They make an oral defence on the basis of the hearing. Following these submissions, the court announces the decision either on the day of the hearing or within a short period of time. The court may organise a case management hearing upon request or on its own. These hearings are usually held at the beginning of the case. The timing of the hearing, deadlines for the presentation of evidence and other important stages are set when the timeframe for the hearing is set.

Trial by jury is not possible in Türkiye. Trials are conducted by judges. In Türkiye, proceedings are conducted on the basis of written documents and evidence. The parties submit their pleadings, replies to pleadings and necessary documents to the court. Hearings are held in open court but do not proceed in the same way as jury trials.

Types of evidence are regulated in the CPC. Written evidence can be contracts or official documents. Witness statements are accepted for oral evidence. In cases where expert opinion is taken due to the nature of the work, expert opinions obtained when technical knowledge and special knowledge are required are also evidence.

Under Article 139(1) of the CPC, a two-week period is given from the notification of the preliminary examination hearing invitation. If there is a risk of evidence being lost or destroyed, temporary measures may be taken in terms of evidence. If the accuracy of the evidence is in doubt, the parties may object to the evidence presented. In some cases, the submission of official documents is mandatory.

The parties may submit expert witnesses to the court to testify in their favour in cases that require expertise and technical knowledge according to the subject matter and nature of the case. Experts may prepare reports that are necessary for the resolution of the case and create evidential documents.

If the court deems it necessary, it may request information from these experts. An institution is also appointed for a situation that requires expertise. If contradictions occur, the court has the authority to request another report on the situation.

Hearings are held in public, and the minutes are accessible through the principle of publicity. This also ensures fair trial procedures within the judicial process are implemented.

However, there are some exceptions. According to the law on the protection of children, hearings held in juvenile courts are kept confidential. If there are situations that require confidentiality in the case files, the accessibility of the minutes is hidden.

Judges act to protect the rights of the parties in their trial order. This order must be established to ensure the principle of a fair trial. For the order of the hearing, the judge listens to the statements of the parties and requests the presentation of evidence.

During the hearing, it may decide on various circumstances such as whether the documents submitted by the parties are in accordance with the law. If these circumstances are simple to understand, they are also precautionary. For decisions that are more complex and cannot be made without sufficient evidence, it leaves the decision for later.

The general timeframes for proceedings and how long a case will typically last for varies with each type of case. It will depend on the complexity of the case and whether or not there are multiple parties. However, the courts will set a target timeframe for each case.

The court decides on a settlement based on the nature of the case. In cases affecting the rights of children, as stated in Article 363 of the CPC, it is evaluated whether a settlement is appropriate in order to protect the interests of the child.

Court approval is required for those who lack legal capacity, including those who lack the capacity to act or who are restricted. A court decision is also required in cases of compensation, as it protects the interests of the injured party. Court approval is also required in cases of public order as specified in Article 27 of the CPC.

The termination of litigation through settlement can be kept confidential between the parties. These confidentiality agreements are enforceable with respect to court orders and legal and commercial boundaries. The parties can prevent the text prepared for the settlement from being shared with a third party by making a confidentiality agreement regarding the case.

In addition, the court may issue a confidentiality order for the protection of personal data and to prevent violation of commercial boundaries. If commercial and legal information is learnt during the settlement, it is not possible to disclose them without permission. Otherwise, legal sanctions may occur.

Settlement agreements are binding between the parties. According to Article 1 of the Code of Obligations No 6098, the settlement agreement is a contract and the obligations under it must be fulfilled. If the parties violate this agreement, according to Article 66 of the Enforcement and Bankruptcy Law, the settlement agreement can be enforced if it is the document that forms the basis of the proceedings.

If settlement agreements are approved by the court, they are applied in the same way as a court decision. According to Article 125 of the Code of Obligations, there is a right to demand compensation for breach of contract.

There must be a legal basis to cancel settlement agreements. If there is a violation of public order and public morality in the event of unlawfulness specified in Article 27 of the Code of Obligations, it may be cancelled. If the parties do not have the capacity to act, the contracts are deemed invalid in line with Article 43 of the Code of Obligations.

If an event occurs that cripples the will of the person through fraud and deception, the contract may be cancelled after this situation is discovered. In addition, the contract may be cancelled if there is information that will cause an error in the will of one party to the contract through coercion and pressure that renders the will unusable. Failure to fulfil the formal conditions is one of the reasons for invalidity.

In order to be cancelled, the relevant person must make an application. After learning the reason for annulment, they must file the lawsuit within the timeframes specified in the law.

There are different remedies available to successful parties. The party who has suffered material damages can obtain compensation for the damage suffered. It is possible to determine this damage as direct damage suffered and lost earnings.

Moral damage is regulated by Article 56 of the Code of Obligations. It occurs in cases such as violation of personality rights. During the hearings, the court may issue an interim injunction according to the course of the case.

However, they are temporary measures to protect rights. It aims to prevent loss of rights that may occur during the process. If the subject of the lawsuit is based on a contract, the court may demand the fulfilment of the obligations of the contract. It may demand that the other party pay the costs of the lawsuit. If a situation requiring enforcement occurs at the end of the lawsuit, it may apply to the court of execution and request the execution of the decision.

There are some special regulations in Turkish law for compensation for damages. In terms of pecuniary compensation, it can be evaluated as actual damage and lost earnings. What is prioritised in the claim for moral damages is the violation of personality rights. There is no such practice for punitive damages under Turkish law. In the Turkish legal system, only compensatory damages are awarded.

In the event of a tort or breach of contract, actual damages and lost earnings are claimed. In insurance contracts, the amount of compensation to be paid in terms of insurance companies is within the limits specified in the policy. Under the Labour Law, the compensation amounts are fixed. The party claiming compensation is obliged to prove the amount of damage. As there is a prohibition of enrichment with compensation in Turkish law, it is determined by taking the circumstances of the parties into account.

Before the court makes a decision, the creditor may demand interest from the debtor in the event that they do not receive their receivable despite requesting it on time. This interest is determined according to the legal interest rate determined in the Code of Obligations.

The legal interest rate is generally regulated within the framework of the rates determined by the Central Bank. It is valid for the period from the creditor’s request until the decision. After the court decision, the creditor’s right to demand interest arises. It starts from the date the judgment becomes final. There is no specific limitation on pre-judgment interest. However, the creditor must have complied with the obligation to claim the receivable. The interest rate is determined within the legal interest rates in all cases.

It is possible to initiate enforcement proceedings as a result of a court decision. The creditor applies to the authorised enforcement office to enforce the judgment in accordance with the enforcement decisions issued by the Turkish courts.

During the application, the creditor must submit the original or certified copy of the judgment, and the necessary documents related to the enforcement proceedings. A petition for enforcement proceedings is submitted. If enforcement proceedings begin after this petition, the debtor may object to the proceedings. The objection process causes the enforcement proceedings to stop.

During these proceedings, movable and immovable property and, if deemed necessary, salary seizure are applied. If the debtor does not comply with the enforcement process, enforcement penalties are applied. At the end of this process, if the debtor has still not made a payment, the creditor may initiate enforcement proceedings again.

In order for a foreign court judgment to be enforceable in Türkiye, it must be recognised by the Turkish courts. For this recognition, the relevant person or party must apply to the court and request recognition and enforcement. The relevant enforcement court in Türkiye is authorised for this procedure.

The party requesting recognition and enforcement must submit a petition to the court. The court evaluates this petition according to whether the decision is contrary to Turkish public order and morality, the jurisdiction of the foreign court and whether it is based on a legal system valid in Türkiye.

When these conditions are met, the recognition takes place, and the judgment becomes enforceable. With the decision of the enforcement court, enforcement proceedings begin.

In Türkiye, there are higher courts that can be appealed to to review the decisions of the first instance court. The first of these is the Court of Appeal (regional court of justice). An appeal allows the case to be examined from both a substantive and a legal perspective. The time limit for an appeal is two weeks from the notification of the reasoned decision of the first instance court.

The next highest court is the Court of Appeal (the Court of Cassation). An appeal can be filed against the decisions of the regional court of justice. At the appeal stage, it is checked whether Turkish law has been applied correctly. The appeal must be lodged within two weeks from the notification of the decision of the Court of Appeal. Another way that the party who thinks that the decision given as a result of the appeal application is wrong can apply is the correction of decision.

The application can be made within 15 days from the notification of the Court of Cassation decision. The highest court of appeal in Turkish law is the Constitutional Court. If one of the parties thinks that fundamental rights and freedoms have been violated after exhausting all domestic remedies, they can make an individual application to the Constitutional Court.

The individual application period to the Constitutional Court is 30 days from the notification of the final decision. Finally, after exhausting all domestic remedies in Türkiye, if the party still believes that their rights have been violated, they can apply to the European Court of Human Rights. The application to the European Court of Human Rights must be made within six months of the Constitutional Court’s decision.

In the Turkish legal system, in order for a decision to be appealed, the court of first instance must first make a decision and the decision must be appealed. An appeal must be filed within two weeks from the date of notification of the decision of the court of first instance.

The appeal application is examined by the regional Court of Appeal. Decisions of the regional Court of Appeal can themselves be appealed. As of 2024, to be appealed, there must be a case with a material value exceeding TRY224,000 and the Court of Appeal must have made a mistake in applying the law.

The parties to the case, the public prosecutor and, if one of the parties to the case is a minor, their legal representative may appeal. If a party misses the deadline without a justified reason, their right of appeal is terminated.

In order to file an appeal, the decision of the court of first instance must be appealed within two weeks and the appeal must be filed within two weeks from the date of notification of the appeal decision. The appellate review is carried out by the Court of Cassation. For the appeal application, an appeal petition must be prepared first of all. The prepared petition is submitted to the court of first instance who then sends it to the relevant higher court (the Supreme Court) for appellate review.

It should be stated which aspects of the decision subject to appeal are contrary to the law. In addition, the necessary fees and court costs must be paid when filing an appeal. If the deadline is unjustly missed, the right of appeal is forfeited. If the appeal period is missed for a justified reason, a request for reinstatement can be made. The Court of Cassation can make three types of decisions as a result of the appeal review. These are as follows.

• Confirmation: if the Court of Cassation finds the decision in accordance with the law, it upholds it and the decision becomes final.
• Reversal: if the Court of Cassation finds that the decision is contrary to the law, it reverses the decision and sends it back to the relevant court for re-examination.
• Correction: some minor legal errors may be corrected by the Court of Cassation and the decision may be upheld.

Appeal processes are carried out within the scope of the CPC and the CCP. While managing these processes, the appeal court can examine whether there are legal mistakes or material errors in the decisions made by the court of first instance, and the appeal court can examine the existing evidence in terms of the appreciation and evaluation of evidence, but it does not have the authority to collect new evidence.

The appeals court also examines the procedural rules during the trial. During the appeal process, a new hearing is usually not held. The appeals court examines the existing file and documents and may request the parties be heard according to the circumstances. As a rule, it is not possible for the appellant to raise a new issue other than those examined in the court of first instance.

It can only examine the claims and defences put forward in the court of first instance. If there are special circumstances and new circumstances have emerged and these circumstances have not been evaluated by the court of first instance, they can be examined (such as new evidence or a legal change).

There are certain requirements that have to be met for an appeal. These are set out in the CPC and the CCP. Failure to comply with specified statutory deadlines will result in the procedural rejection of the appeal.

If the fees and costs are not paid in accordance with the deadline, the application will be rejected. In order for the petition for appeal to be justified, material and legal errors must be clearly stated. If these conditions are not fulfilled, the appeal may not be examined or additional time may be granted depending on the circumstances.

Appeals are available. The courts of first instance may uphold the decision if they find that it is in accordance with the law. In this case, the court decision is final, and no further review is required. It is applied when there is no error on the merits.

In order to overturn a decision, a material and legal error must be detected. When a decision is reversed, a request is usually made for a retrial before the relevant court. The Court of Appeal may examine the case on the merits and issue a new decision. The Court of Appeal may, if necessary, collect new evidence or hear the parties. For partial upholding or partial reversal, the parts where these decisions are rendered are evaluated separately. The part that is not finalised is heard again.

There are regulations related to litigation costs in Article 326 of the CPC. The party who is deemed to be in the wrong in the case is obliged to cover all the costs incurred by the winning parties in court. This covers court fees and mandatory payments made during the proceedings. Lawyers’ fees, attorney’s minimum fee tariffs, witness, expert witness and discovery expenses are included in the litigation expenses.

If there is a partial win and a partial loss, costs are allocated in proportion to the partial loss and win. It is possible to object to the costs of the case. The court’s costs can be challenged by way of appeal or cassation.

The court makes certain assessments when awarding costs to the parties. This varies in cases such as winning or partially winning the case. In the event that the case is won, the losing party is requested to cover the costs of the proceedings determined in Article 326 of the CPC.

In other words, the other party claims all compulsory expenses incurred during the litigation process. partial win and partial loss, costs are allocated accordingly in proportion to the partial loss and win. If there is a counterclaim, the costs are determined at the discretion of the court. In these proceedings, only that part of the costs necessary to apply to the court and conduct the proceedings is claimed. If there is more than one party against whom a judgment has been rendered, the court will apportion the costs of the proceedings among them and they are held responsible together.

It is possible to claim interest on court costs. In the Turkish judicial system, reimbursement of the expenses determined to cover the court costs that the winning party is obliged to pay is possible. In general, the legal interest process starts for court costs as of the finalisation of the judgment.

When determining the interest, the legal interest rates determined for that period are taken into account. When calculating the interest, the period between the date of finalisation of the court decision and the date of payment is taken into account.

Mediation is an important tool as it provides a quick and effective return in disputes. Law No 6325 on Mediation sets out the legal framework for mediation. Arbitration is one of the most preferred methods especially for commercial disputes and Law No 4686 regulates these processes. Conciliation is also a method of ADR, but it is not a formal process. These processes are supported by many seminars, conferences and training programmes.

There are regulations on the use of ADR. Reaching a faster solution is an incentive for the parties. The introduction of mediation as a prerequisite before filing a lawsuit for commercial disputes also increases the use of ADR. If the parties refuse mediation without just cause, the court may impose certain sanctions. It imposes the obligation to pay part of the litigation costs on the party who refused mediation.

There are institutions that offer ADR. The most commonly used of these are mediation and arbitration centres. There are training processes for professionals who want to specialise in ADR. It is possible to receive these trainings in official organisations such as the Turkish Mediation Office. In some cases, mediation is determined as a condition of litigation. As a result, it has become mandatory to use ADR. It is possible to reach solutions quickly by using these methods.

The CPC and the Arbitration Law, Law No 4686 apply to arbitration proceedings. In order for the arbitration process to begin, the parties must enter into a written arbitration agreement first. The parties determine the arbitration panel as one or three arbitrators. It is essential that the arbitrators are impartial and independent.

The procedural rules to be applied may be determined between the parties. In terms of the hearing process, the parties may determine whether or not to hold a hearing. Domestic arbitration awards are enforceable by local courts. For foreign arbitration awards, the New York Convention and international arbitration regulations apply. An application must be made to the court for enforcement of the award. If the court approves the award, an enforcement order is issued.

Arbitration is not allowed in some cases. Arbitration is not permitted in matters of public order, personal rights, ie, matters that must be resolved without regard to the will of the parties, administrative disputes, state sovereign powers and actions taken by using public power, and criminal law.

In Türkiye, arbitration awards can be challenged under certain circumstances. These are:

• if the arbitration agreement is invalid, unlawful and involuntary;
• if the arbitral tribunal has exceeded its jurisdiction;
• if it constitutes a breach of public order and violates procedural rules; and
• if its decision raises doubts about its impartiality.

In these circumstances the parties may apply for the annulment of the arbitration award. Appeals will usually be heard by the civil courts of first instance.

The enforcement procedure of domestic and foreign arbitration awards in Türkiye is regulated by the Arbitration Law, Law No 4686 and the international arbitration law. Arbitration awards are final and binding. The court considers the arbitration application according to whether the arbitration agreement is valid or not and whether the award is contrary to public order or not.

If the court finds the award enforceable, it issues an enforcement order. For the enforcement of foreign arbitration awards, the court examines whether the award is final and binding, whether it is valid according to the law governing the parties or, if there is no such determination, according to Turkish law, and whether it is contrary to public order. If the conditions are met, the court recognises and enforces the award.

In Türkiye, there are reform proposals regarding disputes to speed up court processes and encourage the use of ADR.

The main areas of growth for commercial disputes are international commerce; intellectual property; contracts; construction infrastructure; finance; consumer; and e-commerce. International trade is increasing with the globalising world.

As there are different jurisdictions between companies, they need international arbitration and dispute resolution. With technological developments, it has become difficult to protect intellectual property rights. In this case, issues with intellectual property agreements such as copyright and patent agreements arise. In terms of international contracts, disputes arise regarding the interpretation or performance of the contract. Because of these situations, there is potential for arbitration and mediation.