The Constitutional Court, with its decision No. 2015/109E. 2016/28K. dated 7 April 2016 published in the Official Gazette No. 29701 dated 3 May 2016 (the "Decision") annulled two provisions regarding administrative fines stipulated in Petroleum Market Law No. 501510 (the "Law"). Article 19.2.a stipulating a TRY 600,000 administrative fine where the dealer fails to continue its activities in a way that it is understood that the dealer is marketing the product of the new distributor (provided under Article 7/4) and; Article 19/2/c stipulating a TRY 800,000 administrative fine should the owner of the dealership license deliver fuel to distributors other than the distributer it is connected to, from the gas station (provided under Article 8/3) have been canceled to become effective within nine months from the date of publishing of the Decision.
The 13th Chamber of Council of State (Danıştay) has transmitted the lawsuit file to the Constitutional Court and requested the cancellation of the two provisions mentioned above, stating that the administrative fines implemented by administrative authorities to preserve the public order in a specific area of activity, or to regulate a specific industry are called regulatory fines and are generally provided in a proportioned manner or by manner of a upper – lower limit. The relevant sections of Articles 7 and 8 also call for regulatory fines. Article 19 of the Law on the other hand, stipulates fixed administrative fines; which does not allow for considerations on the economic size or grade of the company; or on the way or the degree of the offense conducted.
The Constitutional Court has found the determination of such fixed administrative fines in violation of Article 2 of the Constitution regarding the State governed by rule of law, and the principle of equity, and has canceled the mentioned provisions.
Recent Court of Appeals decision on the jurisdiction of English courts
The 11th Chamber of the Court of Appeals, in its decision No. 2014/15681E. 2015/11244K. dated 28 October 2015, ruled that merely stipulating the jurisdiction of "English courts" is not enforceable under Turkish Law as the term "English courts" lacks specificity. In this sense, as the term "English courts" is found to be vague, the contracting parties must also specify in the contract the specific court in which the disputes are to be resolved.
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