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COURT OF CASSATION RULING

Courts Attention: New Mediation Requirement

Official titleDecision of the Fifth Civil Chamber of the Court of Cassation (Yargıtay)

The Fifth Civil Chamber of the Court of Cassation, having accepted the appeal on points of law filed by the Ministry of Justice in the interest of law, reversed the decision of the court of first instance dismissing the action for annulment of an objection on procedural grounds. The reasoning for the reversal was that the court acted unlawfully in dismissing the action on procedural grounds on the basis of mediation, without determining the competent court and as a condition of filing the lawsuit that had not yet entered into force.

Details of the Regulation

After compensating its insured for the damage caused by an obstruction to the payment of common expenses in the insured’s apartment, the plaintiff insurance company initiated enforcement proceedings against the co-owners in order to recover the compensation it had paid by way of recourse under the principle of subrogation, and filed an action for annulment of the objection raised against the enforcement proceedings. The defendants objected to the procedure followed in the enforcement proceedings, the source of the damage, and the amount of compensation. The Court of First Instance dismissed the action on procedural grounds.

The Ministry of Justice requested a review of this final decision of the Court of First Instance by way of appeal on points of law in the interest of law. Upon examining the appeal on points of law in the interest of law, the Court of Cassation determined that the dispute concerned, in essence, whether the requirement of mediation as a condition of filing the lawsuit applied in the action for annulment of the objection brought by the insurance company to recover its claim by way of recourse. The Court of Cassation stated that the competent court in actions arising under Condominium Law No. 634 was the Civil Court of Peace.

The Court of Cassation emphasized that, although Law No. 7445, published in the Official Gazette dated 05.04.2023, amended Article 18/B of Law No. 6325 to provide that mediation would be a condition of filing the lawsuit in disputes arising under the Condominium Law as of 01.09.2023, this condition had not yet entered into force as of 11.08.2022, the date on which the action in question was filed. Therefore, it ruled that the Court of First Instance acted contrary to procedure and the statute in dismissing the action on procedural grounds on the basis of the absence of mediation as a condition of filing the lawsuit, notwithstanding that it had determined the competent court, namely the Civil Court of Peace. It found erroneous the court’s decision to dismiss the action on procedural grounds rather than to issue a decision finding lack of jurisdiction even if it had considered the Commercial Court to be the competent court, and issued a reversal in the interest of law.

REGAS Commentary

This decision legally confirms, by clarifying the effective date of the compulsory mediation requirement in actions arising under the Condominium Law, namely 01.09.2023, that mediation was not a condition of filing the lawsuit in actions commenced before that date. In light of this decision, legal authorities must reassess the unlawfulness of procedural dismissal decisions issued without determining whether the courts have jurisdiction and without taking the effective dates into account. For citizens, it also serves as guidance regarding the critical effect that the effective dates of statutory regulations have on legal proceedings and how filed actions will be affected by those dates.

Questions You Might Have

How does a reversal in the interest of law affect the final outcome between the plaintiff and the defendant?
A reversal in the interest of law aims to remedy an unlawfulness in a final decision but does not directly change the final outcome of the dispute between the parties. Such a reversal is limited to a copy of the decision being sent to the Ministry of Justice and establishes a precedent for remedying the unlawfulness.
From what date is compulsory mediation mandatory in actions arising under the Condominium Law?
The compulsory mediation requirement in legal disputes arising under the Condominium Law entered into force as of 01.09.2023 following the amendment made by Law No. 7445. Mediation is not mandatory for actions filed before that date.
Can a court directly dismiss an action on procedural grounds on the assumption that it is not competent?
No. According to the decision of the Court of Cassation, if a court considers that it is not competent, it must first issue a decision finding lack of jurisdiction. It is contrary to procedure and the statute for the court to dismiss the action directly on procedural grounds on another ground, such as the absence of a condition of filing the lawsuit, without determining the competent court.

Key Terms

Kanun Yararına Bozma
It is the reversal of a final court decision where legal defects are identified by the Ministry of Justice and the matter is referred to the Court of Cassation. Such a reversal generally does not directly change the effect of the decision on the parties, but establishes a precedent for preventing similar legal errors.
Halefiyet İlkesi
In insurance law, it is the situation in which the insurer acquires rights of recourse against third parties to the extent of the compensation paid by the insurer to its insured. Under this principle, the insurer may substitute for the insured and bring a lawsuit against the person who caused the damage.
İtirazın İptali Davası
It is the type of action brought by the creditor to have an objection raised by the debtor against enforcement proceedings declared null by a court judgment and thereby ensure the continuation of the enforcement proceedings.
Dava Şartı Arabuluculuk
In certain types of actions, it is mandatory to commence mediation proceedings before filing an action. If this requirement is not fulfilled, the court dismisses the action on procedural grounds.
Usulden Ret
It is the dismissal of an action without examining its merits due to a defect relating to procedural law, such as the absence of a condition of filing the lawsuit or lack of jurisdiction.

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