TÜRKIYE Law and Practice Contributed by: Faruk Aktay, Ayşe Müge Aktay and İrina Gül Coşkun, Aktay Law Firm
ity or immorality, lack of legal capacity, or defects of consent, including mistake, fraud or coercion. Where a defect in consent is alleged, the aggrieved party must bring an action within the statutory time limits starting from discovery of the defect. Failure to com- ply with mandatory form requirements may also ren- der the settlement invalid. If the settlement has been concluded before the court and recorded in the minutes, it has the effect of a final judgment and may be challenged only through the procedural remedies available for court decisions, including actions for revocation or other extraordinary review mechanisms. Outside these situations, settle- ment agreements remain binding and cannot be set aside without a legal basis. 9. Damages and Judgment 9.1 Awards Available to the Successful Litigant A successful litigant may obtain various forms of relief depending on the nature of the claim. The court may order specific performance of contractual obligations, issue declaratory judgments, or require the defendant to perform or refrain from certain acts. Where loss has been sustained, the court may award pecuniary dam- ages, including both direct loss and loss of profit, and non-pecuniary damages under Article 56 of the Code of Obligations for violations of personality rights. Where appropriate, the court may also order restitu- tion or annulment of a legal act. The prevailing party is entitled to recover court costs and statutory attorney’s fees. Following the final judgment, the successful par- ty may seek enforcement of the decision through the execution offices. Interim injunctions granted during the proceedings are temporary measures and do not form part of the final remedies awarded at trial. 9.2 Rules Regarding Damages Turkish law recognises only compensatory damages. Pecuniary damages consist of actual loss and loss of profit, and the claimant bears the burden of proving the existence and amount of the loss. Non-pecuniary damages are available under Article 56 of the Code of
Obligations for violations of personality rights and are assessed by the court on the basis of equity. Punitive or exemplary damages are not permitted in Turkish law, and the prohibition of enrichment gov- erns the assessment of all awards. Although there is no general cap on damages, various statutes impose specific limitations – for example, compensation limits in insurance policies, statutory formulas under labour law, and sector-specific ceilings in regulated areas. Outside these special regimes, damages are calcu- lated with reference to the circumstances of the case and must reflect the actual loss suffered. 9.3 Pre-Judgment and Post-Judgment Interest A successful party may recover pre-judgment inter- est if the debtor has fallen into default, which occurs either upon expiry of a specified due date or upon service of a notice of default. Pre-judgment interest is calculated at the statutory legal interest rate or, in commercial matters, at the statutory commercial default interest rate published pursuant to the Turkish Commercial Code. These rates apply from the date of default until the date of judgment. Post-judgment interest is also recoverable. If the claimant has requested interest in the statement of claim, interest ordinarily accrues from the filing date; otherwise, it accrues from the date of the judgment. Interest continues to run until full payment is made. Turkish law does not provide for punitive interest and prohibits excessive or compound interest, except in limited commercial contexts. Both pre- and post- judgment interest are awarded within the framework of statutory legal or commercial interest rates. 9.4 Enforcement Mechanisms of a Domestic Judgment A domestic court judgment is enforced ( ilamlı icra ) before the competent enforcement office. The creditor files an enforcement request and submits the original or a certified copy of the judgment. The enforcement office then issues a payment order to the debtor. Unlike ordinary debt collection, a debtor cannot block enforcement by a simple objection. Enforcement pro- ceeds unless the debtor obtains a stay order through
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