What are Compensation and Torts in Turkish Law of Obligations?

Compensation for Material and Moral Damages Due to Unlawful Acts

In our legal system, "tort" is defined as a person causing damage to another's property or personal rights through an unlawful and culpable act. Article 49 of the Turkish Code of Obligations states that "a person who causes damage to another through a culpable and unlawful act is obliged to compensate for that damage." Accidents, injuries, attacks on personal rights, or unfair competition are the main areas of focus under this heading. For the victim, this process is not merely a quest for compensation, but also a partial redress for the injustice suffered.

1. Four Elements of a Tort For an event to be considered a "tort" and give rise to compensation, four fundamental conditions must be met simultaneously:

• Verb: An action (e.g., hitting someone) or omission (e.g., failing to prevent a hazard).

• Illegality: The conduct must be contrary to existing legal rules or general moral principles.

• Fault: The perpetrator's intentional (deliberate harm) or negligent (carelessness, imprudence) conduct.

• Damage and Causal Link: There must be a direct cause-and-effect relationship between the damage incurred and the perpetrator's actions.

2. Monetary Compensation: The Monetary Equivalent of the Damage. Monetary compensation is the redress of the decrease in the victim's assets resulting from a wrongful act.

• Bodily Injuries: In case of injury, compensation may be claimed for medical expenses, loss of earnings, and reduction or loss of working capacity.

• Loss of Support: If a death occurs, the financial losses of the deceased's relatives who have been deprived of support are compensated.

• Calculating Financial Damages: These calculations are usually actuarial experts . Data such as the victim's age, income, degree of loss of working capacity, and remaining life expectancy are processed using mathematical formulas to determine the "amount of compensation."

3. Non-pecuniary Damages: Redress for Pain and Suffering . Non-pecuniary damages aim to alleviate the grief, suffering, and emotional distress experienced by the victim due to the wrongful act. The amount of non-pecuniary damages does not fully compensate for the harm; because there is no exact monetary equivalent for the suffering endured. However, the judge determines an "appropriate" amount by considering the severity of the act, the social and economic status of the parties, and the depth of the trauma experienced by the victim. Non-pecuniary damages should not be a means of unjust enrichment, but should also have a deterrent effect on the perpetrator.

4. Proof of Damage and Causal Link: The greatest burden in a compensation lawsuit is proving the damage. The victim must prove the causal link (causation) between the damage suffered and the perpetrator's actions. For example, a victim whose leg is broken in a traffic accident must prove the "connection between the fracture and the accident." Police reports, accident records, hospital records, and witness statements are the strongest evidence here.

5. Statute of Limitations in Tort Claims The statute of limitations periods in tort cases are crucial and must not be missed to avoid loss of rights:

• General rule: 2 years from the date the injured party learns of the damage and the perpetrator .

• Absolute time limit: In any case, 10 years. The expiration of this period completely extinguishes the right to file a lawsuit (by way of "defense").

6. Status and Compensation of Foreigners in Turkey Foreigners residing in or visiting Turkey can claim compensation under Turkish law if they suffer a wrongful act (e.g., traffic accident, wrongful assault). According to International Private Law, the law of the place where the damage occurred (Turkish Law) applies. The biggest challenge for foreign victims is submitting notarized translations of the "income data" and "social security records" used in calculating compensation to the court, especially if these documents are of foreign origin.

7. Strategic Tip: Partial Claim and Unspecified Claim Claim The full amount of damages may not be determined immediately after the event (for example, if the treatment process is ongoing). In these cases, instead of determining the full amount of compensation at once an "unspecified claim claim" prevents the claim from becoming time-barred and allows for an increase (amendment) of the amount as the damages become clearer (with an expert report).

Wrongful acts are a traumatic experience for the victim. However, the avenues for monetary and moral compensation offered by the law are the most powerful tools for ensuring justice and redress of damages.

Wrongful Acts Suffered by Foreigners in Türkiye

Turkey is a dynamic and vibrant country that hosts millions of tourists and thousands of foreign investors every year. However, this intensity inevitably brings with it various risks of torts. A traffic accident experienced by a foreigner in Türkiye, an injury sustained at a hotel, or unfair competition/attack during a commercial investment are among the most complex areas of legal processes. Understanding how foreigners can seek redress, obtain compensation, and manage insurance processes within the Turkish legal system, which differs from their own legal systems, is of critical importance.

1. Torts in the Tourism Sector and Hotel Liability The most common torts encountered by foreigners visiting Turkey are injuries sustained in hotel pools or during hotel-related activities (water sports, tours, etc.). This is where "operator liability" comes into play. According to the Turkish Code of Obligations, an establishment (hotel) is obligated to guarantee the safety of the services it provides. If a foreign tourist is injured as a result of a slip in the hotel pool or suffers an accident due to the hotel's negligence, they can both file a "tort lawsuit" against the hotel operator and, if applicable, apply to the hotel's mandatory financial liability insurance.

2. Traffic Accidents and Foreign Victims: In traffic accidents involving foreigners on Turkish roads, the process is governed by Turkish law, just as it would be for Turkish citizens. However, the biggest problems for foreigners are "proof" and "transfer of compensation".

• Accident Report: Foreign victims must ensure that a professional report (by the police or gendarmerie) is prepared at the time of the incident.

• Insurance Processes: In Turkey, mandatory financial liability insurance (traffic insurance) guarantees the payment of compensation by the insurer of the party at fault in an accident. Foreign victims can claim compensation directly from the insurance company in Turkey.

3. Torts for Investors: Unfair Competition and Personal Rights One of the most serious torts faced by foreigners doing business or investing in Turkey is damage to their commercial reputation or exposure to unfair competition. Attacks on a foreign company's brand value or trade secrets are protected by tort provisions in the Turkish Commercial Code and the Code of Obligations. In particular, smear campaigns conducted via social media can cripple a foreign investor's business activities in Turkey. In such cases, obtaining "precautionary measures" to stop the attacks and filing lawsuits for material and moral damages is a vital defense for the investor to maintain their position in the market.

4. Proof and Documentation: The Difficulty of Being a "Foreigner" The biggest challenge for a foreigner filing a tort lawsuit in Turkey is the timely collection of evidence from the moment the incident occurred. If the foreign victim returns to their country without being able to follow the process in Turkey, there is a risk of evidence being tampered with. At this point, foreigners;

• Taking photos/videos at the scene,

• Obtaining the contact information of the witnesses,

• If possible, they should contact a Turkish lawyer immediately after the incident to initiate the "evidence gathering" process.

5. Choice of Law and Applicable Law In a tort that occurs in Turkey, Turkish law generally applies. Even if the foreign victim goes to courts in their own country, the courts usually apply Turkish law (Lex Loci Delicti) because the damage occurred in Turkey. Therefore, Turkish court precedents and expert opinions (actuarial tables) are taken as the basis for calculating the amount of compensation.

6. Transfer of Compensation to the Country and Exchange Rate Risk: When a foreign victim wishes to transfer compensation won in Turkey to their home country, the amount of compensation awarded by Turkish courts is usually in Turkish Lira. If the case drags on for years, inflation and exchange rate differences may work against the victim. Therefore, requesting "compensation together with legal interest accruing from the date of the lawsuit" in the lawsuit petitions is essential to protect the victim from loss of value

7. Recommendations for Foreign Victims: The most effective roadmap for a foreigner who has suffered any wrongful act in Turkey:

• Legal Support: Instead of handling the process on your own, work with a Turkish law firm that has experience with foreign clients.

• Administrative Records: Archiving of hospital reports, police records, and, if applicable, hotel/business records along with sworn translations.

• Power of attorney: A valid power of attorney (with apostille certification) must be drawn up in Turkey at a notary public or at a Turkish consulate abroad for the purpose of pursuing legal action.

While Turkey is a safe haven for foreigners seeking both vacation and investment, injustices within the legal system require a professional approach. A foreign victim's ability to clearly explain their rights before the Turkish courts ensures that their losses are compensated promptly and in full.

Insurance Subrogation Cases: Insurance Companies' Struggle Against the Debtor

The most technical area where insurance law and tort liability intersect is "recourse actions." Recourse is the process by which an insurance company seeks to recover the compensation paid to its insured from the third party responsible for the damage. Regulated within the framework of the Turkish Code of Obligations and the Turkish Commercial Code, this process is the "final settlement" moment that determines who should bear the financial burden of the tort. For both Turkish citizens and foreign investors and individuals involved in the insurance system in Türkiye, recourse actions represent a legal "continuity.".

1. The Legal Basis of the Right of Recourse: When a wrongful act occurs (for example, a traffic accident), the insurance company pays the victim's damages as per the policy. However, the law allows the insurer to recover this amount from the "primarily culpable" party who caused the damage. This is the principle of "subrogation" in law; that is, the insurer acquires the victim's rights to the extent of the amount paid. A recourse lawsuit is the implementation of this right through the judicial process.

2. Under What Circumstances Can Recourse Be Exercised? The circumstances under which insurance companies can exercise their right of recourse are limited by law and general terms and conditions:

• Alcohol or Drug Influence: The driver who caused the accident was under the influence of alcohol or drugs.

• Driving without a license: The vehicle being driven by someone who does not have a driver's license.

• Intent: The accident must have been caused intentionally (knowingly).

• Gross Negligence: The driver's serious violation of traffic rules (e.g., speeding or running a red light).

• Escape: Leaving the scene of an accident after it has happened.

3. The Importance of "Fault Ratio" in Recourse Cases The most important factor determining the outcome of a recourse case is the "fault ratio" determined by the traffic accident report or expert reports. The insurance company can only seek recourse from the at-fault party up to the amount of compensation it paid and in proportion to that party's fault. If the driver is 50% at fault, the insurance company can only claim back 50% of the compensation paid. Therefore, the judicial process in recourse cases focuses entirely on discussing and proving the fault ratios.

4. Subrogation Claims Involving Foreign Parties : Insurance companies operating in Turkey frequently encounter subrogation claims in accidents caused by foreign nationals or incidents involving vehicles with foreign license plates. The process may involve "international private law" and "arbitration" rules. If a vehicle with foreign license plates collides with an insured party in Turkey, either the Green Card Insurance or a Turkish insurance company becomes involved. The recovery of compensation from the foreign driver, proportional to their fault, falls under the jurisdiction of Turkish courts.

5. Defense Against the Insurance Company: What Should the Debtor Do? When an insurance company files a "recourse action" against you, you shouldn't assume it's a "bad start." As the debtor, you can develop the following defenses:

• Objection to Fault: A new expert examination can be requested, stating, "I am not 100% at fault; the accident report is incorrect."

• Amount of Compensation Objection: It may be argued that the compensation paid by the insurance company is "excessive" or was calculated to be higher than it should have been.

• Statute of limitations: The right of recourse begins from the date the insurance company makes the payment. It should be checked whether this period (usually 2 years) has expired.

6. Risks for Foreigners in the Recourse Process: When a recourse lawsuit is filed against a foreign driver who has left Turkey, it is quite difficult for that person to be notified and to defend themselves. Notification processes (serving notices abroad) can take years. This situation can lead to the foreigner being convicted in absentia and their assets being seized in Turkey. Therefore, foreigners who are involved in an accident in Turkey and return to their country should definitely register their address in their name or have the processes followed through by a lawyer to prevent major losses.

7. Strategic Tip: Recourse Notice Insurance companies often send a "recourse notice" before filing a recourse lawsuit. This is a way of telling the debtor, "Pay or we will sue." If the debtor pays at this stage, they can avoid court costs and legal fees. However, seeking legal support when responding to the notice provides a significant advantage in preventing the lawsuit or reducing the amount owed.

While recourse claims are a tool used by insurance companies to maintain their financial balance, they also serve as a "control mechanism" for the debtor. An unjustified recourse claim, or one that exceeds the degree of fault, can be rejected or reduced in court through the use of proper defense techniques.

Statute of Limitations in Obligations Law: Critical Periods to Avoid Losing Your Right to Compensation

In law, the "spirit of the times" is always on the side of justice; however, the legal system does not want disputes to remain open indefinitely. In Contract Law, statute of limitations is the loss of the "liability to sue" of a claim or right to compensation if it is not asserted within a specific period specified by law. Even if you have a justified claim, if you miss the statute of limitations, your case may be dismissed without merit if the opposing party raises this as a defense. This is the most critical technical issue to consider in order to avoid losing your right to compensation.

1. Statute of Limitations in Torts The statute of limitations for debts arising from torts (events requiring compensation) is regulated in a dual structure in the Turkish Code of Obligations:

• Learning Period (Short Statute of Limitations): 2 years from the date the injured party learns of the damage and the person liable for compensation (the perpetrator) .

• Absolute Statute of Limitations (Long Limitation): In any case, 10 years. Whichever of these two periods expires first, the right to file a lawsuit becomes time-barred. It is particularly crucial for foreign victims to clarify the "date of learning" when initiating legal proceedings in Turkey, in order to accurately calculate the time limit.

2. Statute of Limitations for Breach of Contract The general statute of limitations for claims arising from contracts (e.g., non-payment of debt, failure to perform a service) is 10 years . However, Article 147 of the Turkish Code of Obligations provides for shorter periods of 5 years in certain special circumstances :

• Rental prices, residential and commercial property rents.

• The cost of accommodation in places such as hotels, motels, guesthouses, and holiday resorts.

• Work performed in exchange for labor (employee wages, consulting fees).

• Seller and broker receivables.

3. Circumstances that Suspend and Interrupt the "Suspension" of the statute of limitations temporarily prevents the period from running, while "interruption" resets the period to zero and starts a new one.

• Circumstances that interrupt the statute of limitations: These include the debtor acknowledging the debt (making a partial payment or accepting the debt) or the creditor filing a lawsuit, initiating enforcement proceedings, or sending a notice. The statute of limitations is interrupted when a lawsuit is filed and does not run during the trial.

• Note for Foreigners: Whether a lawsuit filed abroad interrupts the statute of limitations depends on the law governing the dispute. For foreigners seeking redress in Turkey, the safest way to interrupt the statute of limitations is to initiate a formal legal process (notice, lawsuit, enforcement) in Turkey.

4. Statute of Limitations is a "Defense" The statute of limitations is not considered ex officio by the court. If the debtor does not raise a statute of limitations objection, the court can hear the case and make a decision even if the time limit has expired. However, the moment the debtor says "the statute of limitations has expired," the judge is obliged to investigate this. Therefore, not hesitating to file a lawsuit even if the statute of limitations has expired (hoping the debtor will not raise this objection or proving that the time limit has not expired) is sometimes a legal strategy.

5. Critical Risks and Solutions for Foreigners : Foreign victims may lose time trying to overcome bureaucratic processes and language barriers in Turkey.

• Notification Processes: In some cases, notifications sent abroad can take between 6 months and 1 year. These periods do not suspend the statute of limitations.

• Recommendation: A foreigner should interrupt the statute of limitations by using expedited methods such as "precautionary attachment" or "notice of default" instead of filing a lawsuit in Turkey. Additionally, initiating the process through a lawyer saves time, rather than waiting for the power of attorney process.

6. Statute of Limitations for Defective Goods and Services In compensation claims arising from defective goods (warranty against defects), the statute of limitations is generally 2 years. However, if the seller is grossly negligent (fraudulently concealed the defect), liability may continue even after this period has expired. One of the biggest problems faced by foreigners undertaking construction projects in Turkey is confusing the "warranty period" with the "statute of limitations." The expiration of the warranty does not mean the expiration of the statute of limitations; a longer period may apply for the legal possibility of claiming a defect.

7. Conclusion: The Importance of Early Action Statute of limitations is like a "penalty" in debt law. Knowing you are right is not enough; you must claim your rights within the timeframe stipulated by law. Especially in systems like Turkey, where legal processes can sometimes be prolonged due to technical details, "acting from day one" is the safest approach for any claim for receivables or compensation