This was an appeal from the judgment of the Istanbul 17th Commercial Court (16 April 2015, 2014/1447-2015/166).

The plaintiff insurer paid its insured, B Makine Ticareti Yatırım AŞ, under its insurance policy and sought to collect TRY 18,517 plus interest from the defendant. In particular, the plaintiff insurer claimed that goods purchased from the Japanese company NK W Co Ltd were damaged during their transportation to Türkiye. The plaintiff argued that the goods in question were delivered to the defendant carrier in full, complete and undamaged, but that they were damaged during delivery to the consignee. Therefore, the defendant was liable for the damage under art 1178 of the Turkish Commercial Code (the TCC) [which is based on art 3.2 of the Hague Rules, art 3.2 of the Hague-Visby Rules, and art 4.2 of the Hamburg Rules - although Türkiye is only a State Party to the Hague Rules, the TCC incorporates a set of rules that purport to adopt elements of the Hague-Visby Rules and the Hamburg Rules].

The defendant argued that the bill of lading included a jurisdiction clause in the reverse side authorising Swiss courts to hear the matter. The defendant therefore demanded the dismissal of the lawsuit in terms of jurisdiction and on the merits.

The Court of first instance held that the relevant dispute involved a foreign element. The jurisdiction of the Court was not regulated based on exclusive jurisdiction. The dispute arose from a contractual debt relationship. The bill of lading was received by endorsement and presented to the carrier, and the insured, the receiver of the cargo, was bound by the terms of the bill of lading. In the face of the validity and binding nature of the written condition regarding the authority of the Swiss courts and applicable law in the bill of lading, the Court dismissed the lawsuit due to the jurisdictional incompetence of the Court. 

The plaintiff appealed to the Supreme Court of Appeal.

Held: Appeal dismissed. The judgment of the Court of first instance is upheld in favour of the defendant.