Court of Cassation ruling on exchange rates: New practice for package tour refunds

The Court of Cassation has issued an important ruling regarding package tour cancellations. It has ruled that tour fees cancelled due to health issues must be refunded based on the exchange rate on the date the lawsuit was filed, rather than the date of payment. This decision will initiate a new practice in tour cancellation lawsuits.

COURT RULING AND THE INTERVENTION OF THE COURT OF CASSATION

M.K., a resident of Ankara, purchased an international travel package from a tour company in 2019 for 1,888 Euros. However, due to his spouse's health issues and the COVID-19 pandemic, he cancelled his trip in 2020 and requested a refund. After the company failed to provide a refund, M.K. filed a lawsuit.

The Ankara West 1st Consumer Court ruled that 12,127 Turkish Liras, which was the equivalent of 1,888 Euros on the date of purchase, should be refunded to M.K. However, the Ministry of Justice appealed this decision, finding it contrary to the Turkish Code of Obligations.

The 3rd Civil Chamber of the Court of Cassation overturned the local court's decision, ruling that the fee paid by the plaintiff should be refunded based on the exchange rate on the date of the lawsuit. The ruling stated, "Considering that the plaintiff, in his petition, exercised his right of choice by requesting the collection of 18,919 liras from the defendant, which is the equivalent of the amount paid based on the exchange rate on May 5, 2021, the date of the lawsuit, it is contrary to procedure and law to decide on a refund based on the exchange rate on October 25, 2019, the date the package tour fee was paid."

This decision will serve as an important precedent for consumers facing similar situations and will mark the beginning of a new era in refund transactions involving foreign exchange rates.