New Rules in the Turkish Judicial System: Target Time and Mandatory Mediation in Commercial Disputes

New Rules in the Turkish Judicial System: Target Time and Mandatory Mediation in Commercial Disputes

In Turkey, litigation processes take a long time due to many different reasons. The European Court of Human Rights has received many individual applications due to long-standing litigation processes in Turkey. To increase confidence in the Turkish judicial system and judicial authorities, on 31 August 2018 the Ministry of Justice published an official announcement on its website and wrote to the courthouses, initiating what is called “target time” in litigation. The target time has been implemented in the Turkish judicial system since 3 September 2018.

Another significant change that was introduced on 1 January 2019 is mandatory mediaton in commercial disputes. With Law no. 7155 published on 19 December 2018 in the Official Gazette, it became mandatory to apply to a mediator before filing a lawsuit within the scope of the Turkish Commercial Code. The law also amends the Law on Mediation in Civil Disputes. Accordingly, parties are no longer able to file these kinds of lawsuits before commercial courts, without initially attempting to resolve their dispute through mediation. In other words, if the courts determines that a claimant has filed a lawsuit before applying to a mediator in disputes where mediaton is mandatory, that lawsuit will be dismissed on procedural grounds, without any further action.

To read more about target time and mandatory mediation in commerial disputes, please download the latest Dispute Resolution Newsletter of SEE Legal’s Turkish member, KDK law firm.

In Turkey, litigation processes take a long time due to many different reasons. The European Court of Human Rights has received many individual applications due to long-standing litigation processes in Turkey. To increase confidence in the Turkish judicial system and judicial authorities, on 31 August 2018 the Ministry of Justice published an official announcement on its website and wrote to the courthouses, initiating what is called “target time” in litigation. The target time has been implemented in the Turkish judicial system since 3 September 2018.

Another significant change that was introduced on 1 January 2019 is mandatory mediaton in commercial disputes. With Law no. 7155 published on 19 December 2018 in the Official Gazette, it became mandatory to apply to a mediator before filing a lawsuit within the scope of the Turkish Commercial Code. The law also amends the Law on Mediation in Civil Disputes. Accordingly, parties are no longer able to file these kinds of lawsuits before commercial courts, without initially attempting to resolve their dispute through mediation. In other words, if the courts determines that a claimant has filed a lawsuit before applying to a mediator in disputes where mediaton is mandatory, that lawsuit will be dismissed on procedural grounds, without any further action.

To read more about target time and mandatory mediation in commerial disputes, please download the latest Dispute Resolution Newsletter of SEE Legal’s Turkish member, KDK law firm.