The Difference in Jurisdiction Between Civil Courts and Commercial Courts

Entrance

In the Turkish judicial system, the most fundamental element determining which court will hear a case is the concept of jurisdiction . While the Civil Court of First Instance has the broadest scope of jurisdiction in the civil court system , Commercial Courts of First Instance have been specifically established to resolve commercial disputes .

However, one of the problems frequently encountered in practice whether a case is of a commercial nature .
Because this determination directly affects which court will hear the case.

This article will explain the differences in jurisdiction between Civil Courts of First Instance and Commercial Courts of First Instance, along with their legal basis and Supreme Court precedents.

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What is a Civil Court of First Instance?

The Civil Court of First Instanceresponsible for hearing all cases in the field of private law, unless otherwise stipulated by law .

According to Article 2 of the Code of Civil Procedure:

"Unless otherwise stipulated in the law, all types of lawsuits, regardless of the value or amount of the subject matter of the lawsuit, are heard in the Civil Court of First Instance."

This article makes the Civil Court of First Instance the fundamental judicial body of the judicial system. Examples of its areas of responsibility:

• Heritage,

• Cancellation and registration of title deeds

• Rent,

• Compensation for torts,

• Property and debt disputes.

In short, unless another court is designated as competent by law, the dispute falls under the jurisdiction of the Civil Court of First Instance.

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What is a Commercial Court of First Instance?

Commercial Courts of First Instance are specialized courts established to handle cases and disputes of a commercial nature

The establishment and jurisdiction of these courts are regulated by the Turkish Commercial Code No. 6102 and Law No. 6335

Every provincial capital and district with a large volume of trade has at least one Commercial Court of First Instance. Where none exist, the Civil Court of First Instance acts as a commercial court

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Definition of Commercial Litigation

Commercial lawsuits are divided into two categories according to Articles 4 and 5 of the Turkish Commercial Code:

1. Absolute Commercial Cases

These are cases explicitly defined as commercial in the law.
Whether the parties are merchants or not is irrelevant.

Examples:

• All types of lawsuits regulated in the Turkish Commercial Code (e.g., company lawsuits, bankruptcy, checks, promissory notes, commercial representation authority),

• Lawsuits arising from insurance contracts,

• Lawsuits arising from transportation contracts.

2. Relative Commercial Lawsuits

A dispute relates to the commercial business of both parties .

For example, a claim arising from a sales contract between two companies is a relative commercial lawsuit.

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The Division of Jurisdiction Between Civil Courts and Commercial Courts

The difference between these two courts the transaction in question is commercial or not .
The table below clearly summarizes the division of jurisdiction:

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Task Determination Criteria in Practice

The following criteria are considered for accurate task identification:

1. Subject of the Case:
   Does the dispute arise from a commercial transaction?
   For example, if it involves a check, promissory note, or company contract → it's a commercial lawsuit.

2. Status of the Parties:
   Are both parties merchants?
   If only one of them is a merchant, the dispute usually goes to the Civil Court of First Instance.

3. Nature of the Business:
   Is the business related to the parties' commercial enterprise?
   If not, it is not considered commercial.

4. Legal Regulation:
   Some cases are considered directly commercial by law (e.g., insurance contracts).

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Procedure for Resolving Jurisdictional Conflicts

Sometimes courts may disagree on whether a case is commercial or not.
In this case:

• The court rules that it lacks jurisdiction.

• The file is sent to the competent court.

• If a party does not submit a request for referral within two weeks , the lawsuit shall be deemed not to have been filed (Code of Civil Procedure, Article 20).

Furthermore, if both the Civil Court and the Commercial Court refuse to hear the case, a court of first instance designating a competent court is consulted.

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Separation of Jurisdiction According to Supreme Court Case Law

The 11th Civil Chamber of the Supreme Court of Appeals, Case No. 2020/3312 E., Decision No. 2021/2784 K.,
stated: "Disputes over dividends between company shareholders are of a commercial nature and fall under the jurisdiction of the Commercial Court of First Instance."

The 15th Civil Chamber of the Supreme Court of Appeals, in its decision numbered 2019/4473 E., 2020/6719 K., ruled
that "A debt collection case where there is no commercial relationship between the two parties should be heard in the Civil Court of First Instance as a general court."

These decisions demonstrate that the division of labor the nature of the case .

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Situations That Cause Confusion in Practice

1. Insurance Cases:
   As regulated by the Turkish Commercial Code, these are always commercial cases.
   Even if the parties are not merchants, the Commercial Court of First Instance has jurisdiction.

2. Credit Card and Banking Disputes:
   If it is a consumer transaction → Consumer Court,
   if it is within the scope of commercial business activity → Commercial Court.

3. Partnership Cases:
   Disputes between partners in limited or joint-stock companies are considered commercial lawsuits.

4. Transportation Contracts:
   All cases relating to the transportation of goods are commercial in nature.

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The Civil Court of First Instance Hears Commercial Cases

If a lawsuit is mistakenly filed in the Civil Court of First Instance, the court will issue a ruling of lack of jurisdiction.
However, according to Article 5/4 of the Turkish Commercial Code, if the parties do not object, the Civil Court of First Instance can also rule on commercial cases.
This is a more flexible version of the jurisdiction rule.

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Conclusion

The division of jurisdiction between Civil Courts of First Instance and Commercial Courts of First Instance reflects the Turkish judicial system's goal of specialization and expediting justice

The existence of courts specializing in commercial litigation both improves the quality of justice and ensures the stability of commercial life.
However, if jurisdiction is not correctly determined, cases can drag on for years.

Therefore, before filing a lawsuit, whether the dispute is of a commercial nature .
It should be remembered that:

"The wrong court can delay even the right case."