TÜRKIYE Law and Practice Contributed by: Faruk Aktay and Ayşe Müge Aktay, Aktay Law Firm
2.6 Contingency Fees Lawyers’ fees in Türkiye are regulated in two ways: the fee that the lawyer receives for the service provided and the success fee. Howev- er, there are some success fee limitations. The assets or rights obtained as a result of the law- suit won by the plaintiff cannot be transferred to the lawyer. However, in the case of a con- tingency fee, the amount that the lawyer earns based on success can be up to 25%. 2.7 Time Limit for Obtaining Third-Party Funding 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 defend- ant 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 pro- ceedings. If these costs are not met, the case will be rejected. 3. Initiating a Lawsuit 3.1 Rules on Pre-action Conduct When initiating the litigation process, the par- ties should pay attention to the statute of limita-
tions. Where there is a failure to apply for man- datory 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 condi- tion 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 defend- ant 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. 3.2 Statutes of Limitations 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 stat- ute 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. 3.3 Jurisdictional Requirements for a Defendant There are general and special jurisdiction require- ments. In general, the defendant’s domicile is authorised. However, there are also special juris- diction rules. Under Article 10 of the CPC, for
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