Litigation in Turkey
"How does the commercial litigation process work in Turkey?"
Quick Answer
Commercial disputes are typically heard before the Commercial Courts of First Instance (Asliye Ticaret Mahkemeleri). In some cases, jurisdiction may lie with other courts depending on the dispute type and statutory rules. The process includes petition, answer, preliminary hearing, evidence, and judgment phases. Appeals are generally made to the Regional Courts of Appeal (İstinaf). A further appeal to the Court of Cassation (Yargıtay) may be available only for eligible decisions and subject to statutory conditions (including monetary thresholds and/or subject-matter rules).
Dispute Resolution in Turkey
Litigation in Turkey is a critical consideration for any business operating in or with Turkey. The Turkish legal system provides various mechanisms for resolving commercial disputes efficiently.
Key Points to Remember
- Mandatory mediation applies to many commercial disputes, particularly monetary claims and compensation claims, subject to statutory scope and exceptions
- Turkish courts have specialized commercial divisions
- International arbitration is well-recognized and enforced
- Turkey is party to the New York Convention
Choosing the Right Approach
The choice between litigation, arbitration, and mediation depends on various factors including contract terms, relationship considerations, and enforcement concerns. International parties often prefer arbitration for cross-border disputes.
Proper dispute resolution clauses in contracts can significantly impact the efficiency and cost of resolving future disagreements.
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