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28

despite the existence of a jurisdiction agreement by stating that,

“…although

the incident in question occurred in the Pacific Ocean, the jurisdiction

agreement authorizing a foreign court may not abolish the international

jurisdiction of Turkish Courts that are generally, and exclusively competent;

Turkey has not become a signatory of the London Convention; thus, the

lawsuit in question has been brought before the Turkish Courts as the

forum of the place of performance and thus competent in accordance with

Articles 22 and 23 of the Law on International Private Law and Procedural

Law, and Articles 9 and 10 of the Law of Civil Procedure”.

As there are contradictory decisions from the same Chamber, the

ambiguity was clarified by the new provision of Law No. 5718 which

provides that the Turkish courts may assume jurisdiction only in two

exceptional cases. These cases are (i) if the competent foreign court

decides on its non-competence for some reason; or (ii) the respondent does

not object to the jurisdiction of the Turkish court.

In line with that, in a more recent decision, following the adoption

of Law No. 5718, the 11

th

Civil Chamber of the Court of Appeal decided

that,

“As it has been agreed that disputes which arise from bills of lading,

subject to the lawsuit in question, would be resolved in the Naples court

and Italian Law would be applicable in the settlement thereof, and that

an issue of jurisdiction, or public order is not in question, a foreign court

may accordingly be deemed competent in such disputes carrying a foreign

element. Thus, it is supposed to dismiss the lawsuit in terms of non-

jurisdiction, and to have the decision stating that the Naples courts are the

competent courts approved

”.

II. Applicable Law

According to Article 24 of Law No.5718 on International Private Law

and Procedural Law, the choice of law of the parties to the disputes arising

out of contractual relations carrying a foreign element must be respected.

Pursuant to the said Article:

Applicable law to the contractual relations

ARTICLE 24- (1) A contract shall be governed by the law

chosen by the parties. The choice must be expressed or

demonstrated with reasonable certainty by the terms of

the contract or the circumstances of the case. By their