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Turkish Constitutional Court: Excluding Inflation and Currency Fluctuations from Proving Additional Damages Violates Property and Access to Justice Rights

The Turkish Constitutional Court’s Plenary Decision in Caner Şafak (published in the Official Gazette on 29 September 2025) reviewed the prevailing judicial approach to proving additional damages. What is Additional Damage? Article 122 of the Turkish Code of Obligations (“TCO”) defines additional damage as a creditor’s loss exceeding statutory or contractual interest. In other words, it covers real losses arising from late payment that go beyond default interest. For instance, if a creditor must borrow at a higher interest rate or suffers from adverse exchange rate movements due to delayed payment, such losses qualify as additional damages. Current Practice For many years, Türkiye’s Court