Turkish Constitutional Court’s Pilot Judgment on Collateral Damage

In its decision published in the Official Gazette dated 29 September 2025 (no. 33032), the Constitutional Court of the Republic of Türkiye ruled that no effective legal remedy exists for claims seeking compensation for collateral damage (munzam zarar) resulting from the depreciation in the value of receivables between private parties due to inflation. The Court found that this situation constitutes a violation of both the right to property and the right to an effective remedy, emphasizing that the State has a positive obligation to ensure a fair balance between the interests of parties in private legal relationships.

The Court further stated that the lack of adequate legislation and judicial practice to preserve the real value of receivables has led to numerous similar applications, indicating a structural problem that cannot be remedied through individual applications alone, and decided to apply pilot-judgment procedure.  

Within this scope, it was decided that the examination of applications alleging a violation of the right to property — both those lodged before and those to be registered after the publication of the pilot judgment — shall be postponed for six months as of its publication in the Official Gazette, and that the matter shall be referred to the Grand National Assembly of Türkiye (TBMM). Following the decision, new legislative regulations are expected to be introduced concerning disputes arising from the loss of value of receivables due to inflation.