Dispute resolution in the course of litigation is held with article 313
– 315 of Turkish Procedural Law. Article 313 states that dispute
resolution is an agreement between the parties in order to cease the
dispute partially or completely at the presence of the court.
According to Turkish Procedural Law number 6100, judge is obliged to
invite the parties for settlement. Rejection of settlement by parties
does not affect settlement possibility to use in further steps of the
case. Accordingly, parties can agree on a settlement in any stage after
rejection of settlement invitation in pre-examination stage of the
Settlement agreement can be concluded via attorneys in case that they
are authorized with a proper POA (Power of Attorney) stating
authorization for settlement. Undisputed matters in the case can be also
added to the contract. The settlement agreement can also be formed based
on conditional situations.
In the course of hearing the parties may also inform the court that they
reached consensus for settlement. In that situation, this settlement
must be reflected to hearing record subsequently the record must be read
to the parties in the course of hearing.
Then the hearing record must be signed by the parties in the
presence of the judge. Signature is the unique criteria for validity of
the record. Settlement agreement can be also concluded outside of court.
The cost pertaining to judicial affairs is an important issue once it is
required to determine. In case that any provision regarding judicial
cost is lacking in the agreement, distribution of said cost would be in
accordance with ratio of acceptance by parties. The settlement based on
conditional situation is not a final judgment. On contrary, the
settlement without agreement has some effect as final judgment.
Therefore settlement agreements approved in the presence of the court
can be executed by means of enforcement department. ( Please see my
Threat, error or fraud are the main elements to annul the settlement
agreement which is also general as a continental law principle which
applies to every type of contract approved by the parties.
According to Turkish Law, there is restriction for conclusion of a
settlement agreement which is very crucial to be kept in mind.
There can’t be any settlement agreement for determination of paternity
suit. There is also an important difference concerning family law.
Settlement agreement can solely approved by the judge’s approval.
Therefore, parties’ signature on separation agreement (divorce) is not
sufficient to enforce it by the means of court due to necessity of