JUDICIAL PROCEDURE IN VEHICLE DEPRECIATION CASES

What is Depreciation?

Diminution refers to the decrease in the market value of a vehicle following a traffic accident. Vehicles repaired after an accident generally have a lower market value compared to similar vehicles that were not involved in an accident. Vehicle owners can file a lawsuit to recover this decrease in value.

Vehicle depreciation claims are filed based on the provisions of the Law of Obligations and the Highway Traffic Law. Lawsuits for compensation for material damages arising from traffic accidents can be filed against the parties involved in the accident or against insurance companies.

COMPETENT COURT

Vehicle depreciation claims are lawsuits filed to recover compensation for the decrease in the value of vehicles resulting from traffic accidents. The competent court for these cases is determined according to the type of case and the status of the parties. Disputes arising from compulsory financial liability insurance contracts can be resolved in "general courts" or through arbitration in accordance with Article 30 of the Insurance Law No. 5684.

The court responsible for handling vehicle depreciation claims may vary depending on the parties involved and the type of case

Civil Courts of First Instance:

• • Claims regarding diminished value of property are generally in the nature of compensation claims. These types of cases are typically heard in Civil Courts of First Instance.
  • If the lawsuit is filed against an insurance company and the amount exceeds a certain limit, the Civil Court of First Instance has jurisdiction.

The Role of Civil Courts of First Instance

Civil Courts of First Instance are general courts and have jurisdiction and authority over diminished value cases. Civil Courts of First Instance hear diminished value cases in the following situations:

Compensation Claims:

Claims for diminished value are considered within the scope of pecuniary damages claims. In these cases, the party responsible for the accident or the insurance company is required to compensate the vehicle owner for the decrease in value.

Insurance Cases:

Civil Courts of First Instance may also have jurisdiction in cases of diminished value claims filed against insurance companies. In particular, vehicle owners can file a lawsuit when insurance companies fail to pay compensation for diminished value.

Filing the Lawsuit

In diminished value lawsuits, certain procedures must be followed in order to file a lawsuit:

Petition Preparation:

The plaintiff prepares a lawsuit claiming compensation for the depreciation in vehicle value. This lawsuit should include information such as the dates of the accident, the information of the party at fault, and the amount of the vehicle's depreciation.

Expert Report:

An expert report is usually required to determine the decrease in value. This report compares the market value of the vehicle before and after the accident to determine the amount of the loss.

Presentation of Evidence:

Accident reports, vehicle repair invoices, photographs, and other documents must be submitted to the court.

Competent Court

In diminished value claims, the competent court is generally the court of the defendant's place of residence or the court of the place where the accident occurred. Additionally, in claims against an insurance company, the court of the company's headquarters may also have jurisdiction.

Consumer Courts:

• • If the transaction between the parties to the case involves a consumer transaction (for example, an individual vehicle owner and an insurance company), then Consumer Courts may have jurisdiction.
  • Consumer Courts are specialized courts established to protect consumers and handle disputes arising from consumer transactions.

The decrease in value of vehicles following traffic accidents can constitute a significant financial loss for vehicle owners. In lawsuits filed to claim compensation for these damages, Consumer Courts may also have jurisdiction if the parties are considered consumers.

Claims for diminished value resulting from traffic accidents are generally based on the provisions of the Turkish Code of Obligations and the Highway Traffic Law. However, if the parties are in consumer status, the provisions of Law No. 6502 on the Protection of Consumers may also be applied.

Consumer Courts are specialized courts established to protect consumers and handle disputes arising from consumer transactions. The following factors are considered when determining whether Consumer Courts have jurisdiction in vehicle depreciation cases:

The Consumer Status of the Parties:

• If the parties to the case involve a consumer transaction (for example, a relationship between an individual vehicle owner and an insurance company), Consumer Courts may have jurisdiction.
• A consumer refers to a natural or legal person acting for non-commercial or non-professional purposes.

Consumer Transaction:

• Disputes arising from the policy relationship between the vehicle owner and the insurance company may be considered a consumer transaction.

 

 

Enforcement Courts:

If a claim related to vehicle depreciation is to be collected through enforcement proceedings, and a lawsuit is to be filed to cancel or continue the enforcement proceedings in case of an objection, the Enforcement Courts may have jurisdiction.

Enforcement Courts are specialized courts that resolve disputes related to enforcement and bankruptcy proceedings. The following are cases in which enforcement courts have jurisdiction, including vehicle depreciation claims:

Initiation of Enforcement Proceedings:

With a court order or document certifying a debt related to a vehicle depreciation claim, the creditor can initiate enforcement proceedings. During this process, a payment order is sent to the debtor.

 

Debtor's Objection:

If the debtor objects to the payment order sent to them, the creditor can apply to the enforcement court to have this objection dismissed. In this case, the enforcement court will decide whether to dismiss or continue the objection.

Continuation of Enforcement Proceedings:

Objections and complaints regarding the continuation or suspension of enforcement proceedings are evaluated in enforcement courts. The court makes a decision after examining the evidence and objections presented by the parties.

Enforcement Proceedings and Litigation Process

The enforcement and litigation process regarding vehicle depreciation involves the following steps:

Court Decision or Receipt Document:

A court decision or document regarding a claim for vehicle depreciation can be used to initiate enforcement proceedings.

 

 

Application for Enforcement Proceedings:

The creditor initiates enforcement proceedings against the debtor by applying to the enforcement office. During this process, a payment order is sent to the debtor.

Debtor's Objections and Complaints:

The debtor can object to the payment order or file complaints regarding the enforcement proceedings. In this case, the enforcement court becomes involved.

Enforcement Court Decision:

The enforcement court evaluates objections and complaints and decides whether to continue or suspend the enforcement proceedings. The parties proceed according to the court's decision.

Collection of Receivables:

If the enforcement proceedings continue according to the court's decision, the debtor's assets can be seized and the debt can be collected.

Determining the Competent Court

The following factors shall be considered in determining the competent court:

• Subject and nature of the case
• The legal status of the parties to the case (whether or not they are consumers)
• Amount of compensation requested

 

Let's examine a sample Supreme Court decision:

 

-DECISION-
The plaintiff's attorney stated that the plaintiff's vehicle was damaged in the accident, which occurred when the vehicle operated and driven by the defendants entered the main road from a side road without control and collided with the plaintiff's vehicle in the vehicle value loss They stated that the accident occurred, that the defendant driver was entirely at fault, and that in this lawsuit, filed as an uncertain claim, they reserved their rights to claim further amounts, demanding 10,000.00 TL. vehicle value loss The plaintiff initially requested the defendants to pay the amount plus legal interest accruing from the date of the accident; with an amended petition dated April 18, 2015, the plaintiff increased the request by 350.00 TL, demanding the collection of 10,350.00 TL.
The defendants' (counterclaimants') attorney argued that the accident report prepared by the police incorrectly indicated the point and manner of impact, stating that the collision occurred further along the road than the intersection of the main road and the secondary road, and within the right lane after the defendant entered the main road vehicles It will be understood that this matter is the case when the stopping points and damaged parts after the collision are examined; the plaintiff is at fault in the accident, therefore the case should be dismissed; the damage to the defendant/counterclaimant's vehicle due to the accident in question was determined by the report in file number ..., and in the case they filed as an uncertain claim, reserving their rights regarding the excess, they demanded 52,500.00 TL in damages and 30,000.00 TL. value loss The plaintiff requested the recovery of the amount from the defendant/counter-defendant, along with commercial interest accruing from the date of the accident.

CONCLUSION: For the reasons explained above, it was unanimously decided on February 29, 2016, to accept the appeal of the defendant (counterclaimants) and to REVERSE the judgment, and to return the advance court fees to the appealing defendant (counterclaimants) upon request.

 

Law Student Intern

Behiye Zeynep Ozturk