Foreign companies doing business in Turkey inevitably face disputes—whether due to unpaid invoices, breach of contract, partnership breakdowns, or supply chain issues. Knowing how to approach business litigation in Turkey is critical to protecting your company’s interests. At ER&GUN&ER, our English Speaking Turkish Lawyers represent foreign entities in commercial litigation across Turkish courts. This comprehensive guide explains the legal procedures, risks, remedies, and strategies that foreign companies must understand when engaged in legal action in Turkey.
What Is Business Litigation in Turkey?
Business litigation refers to lawsuits involving commercial disputes between companies or entrepreneurs, typically resolved in Turkish commercial courts. These disputes may arise from unpaid obligations, contract violations, partnership terminations, or unfair competition. For foreign businesses, local representation by a Turkish Law Firm is essential to navigate procedural formalities and language barriers.
Common Types of Commercial Disputes Foreign Companies Face in Turkey
- Contract Breach: Failure to deliver goods or services, price disputes, performance issues
- Unpaid Debts: Payment default by Turkish clients or suppliers
- Joint Venture Conflicts: Mismanagement, fraud, exit disagreements
- Distributor Termination: Wrongful termination or post-termination non-compete issues
- Construction and Real Estate Claims: Delays, zoning problems, permit disputes
- Intellectual Property Violations: Trademark infringement, counterfeit products
- Tort Claims: Damages due to business interruption or defamation
Which Courts Handle Business Disputes in Turkey?
Commercial lawsuits are generally handled by Commercial Courts of First Instance (Asliye Ticaret Mahkemesi). The venue depends on either the place of the defendant’s residence or where the contract was performed. For smaller claims, general civil courts may be involved. Arbitration is also an option in high-value international disputes if agreed contractually.
Business Litigation Process in Turkey: Step-by-Step
1. Demand Letter or Pre-Litigation Notice
We begin with an official notice or “ihtarname” warning the other party to fulfill their obligations within a fixed time. This may trigger payment or negotiation and can help reduce legal costs.
2. Mandatory Mediation (if applicable)
For certain commercial claims (like unpaid invoices or contracts), mediation is required before a court case. We represent your company during this phase to reach a structured settlement if possible.
3. Filing a Commercial Lawsuit
We prepare a lawsuit petition (dava dilekçesi) and file it with the appropriate court. This document outlines your claim, legal arguments, and supporting documents.
4. Defendant’s Response and Evidence Exchange
The opposing party files their response, and both sides submit documents, contracts, correspondence, and witness statements. Courts often appoint expert witnesses for technical matters (such as accounting, construction, or IP).
5. Hearings and Cross-Examination
The court sets hearing dates where lawyers present arguments, witnesses testify, and evidence is debated. Hearings may occur every 1–2 months. Foreign clients do not need to attend if represented by a lawyer through a Power of Attorney.
6. Expert Reports and Objections
In complex disputes (e.g., accounting errors, construction defects, commercial damages), the court appoints independent experts. We review and, when necessary, challenge these reports to protect your company’s interests.
7. Decision and Enforcement
After evaluating all arguments and reports, the court issues a judgment. If favorable, we begin enforcement through execution offices to collect payment, seize assets, or execute contracts. If unfavorable, we file appeals.
8. Appeal and Cassation (İstinaf & Temyiz)
Commercial judgments can be appealed within 2 weeks to the Regional Court of Appeal (Bölge Adliye Mahkemesi) and then, if necessary, to the Court of Cassation (Yargıtay). These courts review legal compliance and procedural fairness.
Can a Foreign Company Litigate in Turkey Without a Local Office?
Yes. A foreign company may sue or be sued in Turkish courts without a branch or legal entity, as long as they appoint a licensed Turkish lawyer through a valid Power of Attorney.
Why You Need a Turkish Law Firm for Litigation
- All pleadings and evidence must be submitted in Turkish
- Court representation is limited to registered Turkish lawyers
- Procedural rules are strict and missing a deadline can cause case rejection
- We understand how to manage local courts, judges, experts and timelines strategically
- We provide weekly updates and bilingual summaries to our international clients
Real Case Examples
- 🇩🇪 A German logistics firm recovered $230,000 from a Turkish distributor through a commercial lawsuit in Istanbul within 14 months
- 🇬🇧 A UK property investment group sued for breach of construction terms—won case after expert report exposed zoning violations
- 🇨🇭 A Swiss tech company obtained a freezing order (ihtiyati haciz) against a Turkish debtor—enforcement completed in 3 months
- 🇺🇸 A U.S. e-commerce firm defended successfully against a claim for IP infringement—full acquittal secured
What Services Does ER&GUN&ER Provide in Business Litigation?
- Pre-litigation legal analysis and contract review
- Filing of petitions, counterclaims and enforcement applications
- Representation in court hearings and mediation sessions
- Expert objection and cross-examination strategy
- Appeals, enforcement and asset recovery execution
- Full bilingual reporting and coordination with corporate headquarters abroad
Frequently Asked Questions (FAQs)
- How long does a business lawsuit take in Turkey? 12–24 months at first instance. Appeals may take 6–12 additional months.
- Do I need to come to Turkey to sue or defend a case? No. We handle everything via Power of Attorney.
- Is mediation mandatory in commercial litigation? Yes—for monetary disputes, pre-trial mediation is a prerequisite.
- Can the judgment be enforced abroad? Turkish judgments may be enforced in countries with recognition treaties; we advise on cross-border execution.
- Can we sue for both damages and performance? Yes. You can claim for financial losses and force the other side to fulfill obligations (specific performance).
- Is it possible to settle the dispute mid-trial? Yes. The parties can reach a protocol and submit it for court approval at any stage.
- What’s the cost of commercial litigation? Depends on claim value, complexity, and court fees. We offer clear estimates in advance.
- Can a Turkish lawyer represent a foreign company without a branch in Turkey? Yes. As long as proper POA is provided, we can litigate for foreign entities regardless of local establishment.
- Is arbitration faster than litigation in Turkey? Sometimes. It depends on the contract and selected institution (e.g., ISTAC, ICC). We assist with both options.
- What if the other party ignores a court decision? We file for enforcement through execution offices and seize assets, bank accounts, or receivables.
- Are documents in English accepted in court? No. All court submissions must be in Turkish. We translate and format your evidence for legal admissibility.
Conclusion: Litigation Without Borders
Commercial disputes are inevitable—but with strategic guidance and local expertise, they are manageable. At ER&GUN&ER, our English Speaking Turkish Lawyers help foreign companies litigate and resolve disputes efficiently, transparently, and professionally. From contract breaches to multimillion-dollar joint venture lawsuits, we protect your commercial interests in Turkish courts at every stage. Contact the Best Lawyer in Turkey for business litigation support tailored to international companies.