What is a Dissolution of Partnership Case?
In cases where there is shared or joint ownership, in other words, joint ownership, it is possible to terminate this ownership relationship and switch to individual ownership with an agreement between the stakeholders (partners). This method is called consensual sharing and requires the unanimity of all stakeholders. However, if even one of the stakeholders does not consent to the agreement, it becomes mandatory to file a lawsuit for dissolution of the partnership.
Is Mediation Mandatory in a Dissolution of Partnership Case?
As of September 1, 2023, it has become mandatory to go to mediation before applying to court in cases of dissolution of partnership. In cases to be filed after this date, it is necessary to apply to the mediator before applying to the court. Otherwise, lawsuits filed without an application for mediation will be dismissed due to lack of cause of action. If there is no agreement during the mediation process, the applicant can file a lawsuit in the civil court of peace together with the final report of the mediation. What is agreed during the mediation process is binding and cannot be reasserted in court.
Is It Mandatory for All Stakeholders to Be Involved in the Dissolution of Partnership Case?
As explained above, a dissolution of partnership lawsuit is a type of lawsuit that provides for the termination of the co-ownership relationship between the stakeholders. The subject matter of these lawsuits may be immovables, movable property or rights. Every stakeholder has the right to demand the termination of the partnership without giving any reason. However, it is imperative that all stakeholders are involved in the case; Otherwise, the case will be dismissed as the party cannot be formed.
How does the dissolution of the partnership happen?
If this lawsuit is filed, the stakeholders may have the following requests from the magistrate's court:
- Ditto Taksim (De facto Sharing): The court evaluates whether the property is physically divisible based on factors such as the amount of shares, the nature of the real estate and the number of stakeholders. If it is possible to divide it, it is allocated to the shareholders in proportion to their shares by way of partition.
- Sharing Through Sales: If the property cannot be divided materially or if there will be a significant loss of value if it is divided, the partnership is terminated by sale. If all stakeholders agree, the immovable property can only be sold by auction between the stakeholders. If even one of the stakeholders does not agree, the immovable property is sold by auction by the court and the proceeds are divided.
The money to be obtained as a result of the sale is distributed to all stakeholders in proportion to their shares.
Who Bears the Costs of a Dissolution of Partnership Case?
Dissolution of partnership cases are important cases that directly affect the property rights and assets of the parties. There is no "winning" or "losing" party in these cases. In other words, in cases of dissolution of partnership, the court does not find either party wrong. However, the fees, costs and attorney's fees incurred during the trial process are shared among the stakeholders in proportion to their shares.
Can the Decision to Dissolution the Partnership Be Appealed?
There is the right to appeal against the decisions made by the civil court of peace.
Originally published 09.02.2025
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
