Highlights from Dispute Resolution - 2023 Winter Issue

As many of you know, several south eastern provinces of Turkey have been struck by two devastating earthquakes with a magnitude of 7.8 and 7.6 respectively on 6 February 2023. At least 15 million people have been immensely affected by this tragedy. We mourn together with our nation and it will take time to heal the wounds. Yet, we are confident that the affected region will recuperate and rise stronger than ever.

This newsletter aims to inform you of the top trends and developments in dispute resolution practice in Turkey. It was ready to be sent at the beginning of February; following the tragedy, we thought about not sending it but then decided to use it as a means of THANK YOU to all our foreign clients and friends who stood by us in one of the darkest days of the Turkish Republic.

We hope you will find our newsletter useful.

2022 has been a vibrant year in every aspect. Although the social and economic impacts of the Covid-19 have started to wear away, a myriad of global and domestic financial turbulences influenced the legal trends in 2022. It is possible to experience such in dispute types as there has been a rise in hardship, insolvency and default related claims. Interest towards alternative means of dispute resolution is growing on its usual pace and 2022 was no different. To add such interest, United Nations Convention on International Settlement Agreements Resulting from Mediation entered into force in Turkey on 11 April 2022. Additionally, as a result of Covid-19, e-hearing system has been launched in the Turkish judiciary. The hopes are high that this system will enhance the time and cost efficiency. Consumer legislation has also undergone some radical changes in light of the global developments. Numerous notable decisions have been rendered by the Court of Appeal and regional courts of appeal touching upon contradictory subjects as interpretation of good faith depending on different types of disputes, local courts’ authority in modification/cancellation of injunctions in aid of arbitration, prohibition of contradictory behaviour, and violation of the right to a fair trial in arbitration proceedings.

There has been significant improvements in employment and tax case law as well. The Turkish Constitutional Court has handed down rulings concerning several different employee rights such as right to property, freedom of expression and right to privacy and freedom of expression. Tax courts rendered decisions on the use of secret comparable and regression analysis in transfer pricing inspections, annulment of special irregularity fines and security requirement for the stay of execution in tax disputes. In this issue, we provide brief summaries on the above decisions and developments transpired in 2022. Additionally, the issue includes insights on the disputes relating to environmental impact assessments and employee stock options.

Finally, by taking this opportunity, we are pleased to announce that our team of is growing even stronger by recent promotions of Doğuhan Uygun and Onur Çeliker as Counsel; and Can Yılmaz and Yavuz Şahin Şen as Senior Associates. We congratulate these senior members of our team in the high hopes they will continue to contribute to our team’s success. Needless to say, a big thank you goes to our clients, who support us and have a priceless contribution in out team’s expansion.

Please feel free to contact us if you need further information on recent trends and highlights in Turkish dispute resolution practice.

You can reach the entire publication here.