Is It Possible for Companies to Benefit from Legal Aid Under Turkish Law?

In Turkish law, the provision of legal aid is primarily governed by Articles 334 and subsequent provisions of the Code of Civil Procedure. These regulations stipulate that individuals who are unable to bear the full or partial costs of legal proceedings without facing significant financial hardship for themselves and their families may qualify for legal aid. This assistance applies to claims, defenses, applications for provisional measures, and enforcement proceedings, provided that the applications are not manifestly unfounded or frivolous in nature.

Furthermore, non-profit associations and foundations may also be entitled to legal aid if their claims and defenses are justified and if they are financially unable to cover the necessary legal costs. Importantly, foreign nationals can likewise benefit from legal aid, but this is subject to the principle of reciprocity, meaning that Turkish nationals should have access to similar rights in the foreign applicant’s country of origin.

Within this context, a pertinent and frequently debated issue arises: Can legal entities, other than non-profit associations and foundations, such as corporations qualify for legal aid under Turkish law? Some first-instance courts have interpreted the legal provisions narrowly, suggesting that legal aid is strictly reserved for natural persons, excluding all other legal entities unless they are non-profit organizations.

On the other hand, the Turkish Constitutional Court[1], has clarified that the criterion of inability to pay legal costs—whether partially or wholly—applies not only to individuals but also extends to commercial entities that are insolvent. In this sense, insolvency refers to situations where a company’s liabilities exceed its assets, rendering it financially incapable of meeting legal costs. This interpretation establishes a broader, more inclusive understanding of legal aid, indicating that businesses, especially those facing financial distress or insolvency, could potentially benefit from legal aid.

However, despite the precedent set by the Constitutional Court, certain chambers of the Court of Cassation[2] continue to maintain that companies cannot be beneficiaries of legal aid. They argue that the primary intent of legal aid provisions is to protect vulnerable individuals, rather than commercial entities operating for profit. This divergence in judicial interpretation creates a significant inconsistency within the Turkish legal system.

It is important to underscore that, according to Article 153 of the Turkish Constitution, the decisions of the Constitutional Court are binding on all courts, administrative bodies, and public institutions. Consequently, the reluctance of certain chambers of the Court of Cassation to align with the Constitutional Court's decision has been a subject of legal criticism. The failure to comply with the Constitutional Court’s binding rulings has implications not only for the uniformity of judicial practice but also for the rights of businesses in financial difficulty seeking access to justice.

In light of these developments, while the Constitutional Court’s interpretation provides an avenue for financially distressed companies to potentially access legal aid, the ongoing discrepancy in judicial interpretations adds a layer of uncertainty.