Litigation · Alt Service

When the relationship ends, let the portfolio's value be calculated correctly.

Goodwill indemnity claims on the termination of agency and distributorship relationships: claim, defence and negotiation under the practice of Turkish Commercial Code Art. 122 and German HGB §89b.

Overview

The legal basis of the claim

Goodwill indemnity is the sum that a commercial agent (and, per case law, a distributor and certain franchisees where the conditions are met) may claim, once the contract has ended, for the manufacturer's continuing benefit from the customer portfolio the agent brought in. In Turkish law it is governed by Article 122 of the Turkish Commercial Code (TCC), and in German law by §89b of the German Commercial Code (HGB); the two regimes are related but diverge in the detail — in Turkish-German distribution relationships, which law and which case law will apply is half the battle. Where the relationship is on the German market, a choice of law cannot always displace the mandatory protection.

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Conditions and calculation

The core conditions of the claim: termination of the contract (as a rule) by the supplier or without just cause, the distributor's acquisition of new customers or significant expansion of existing ones, the manufacturer's continued benefit from this portfolio after termination, and equity. The calculation sets a base from the average gross earnings of recent years together with the customer-retention rate and a forecast period, applies an equitable adjustment, and caps it at the statutory ceiling (one year's earnings based on the average of the last five years). For a worked numerical example, see our article.

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Claim and defence strategies

On the distributor's side: evidencing customer lists, order history and marketing investments; framing the termination correspondence; not missing the time conditions (in German practice, a one-year period from termination in which to assert the claim). On the manufacturer's side: the defence that the portfolio stems from the brand's pull, just-cause termination records, and the actual scope of exclusivity and customer-data sharing. On both sides, the case file is built not when the relationship is ending but over the years, through the discipline of contract management.

How We Work

From diagnosis to recovery

The matter runs in five steps. Diagnosis: the contract, the termination correspondence and the customer and turnover data are gathered into a single file, and where the relationship has a foreign element the applicable law is analysed separately under the Private International Law Act (MÖHUK, No. 5718). The calculation model: the claim range is built with figures, because you can only negotiate with a number. Notice and negotiation: an opening move that misses no deadline. Mediation: in commercial disputes this stage is a precondition to suit, and we use it with genuinely authorised representation — our mediation practice sets the offer ranges before anyone sits down. Litigation or arbitration: run in parallel in both countries where that is what the matter needs, with a German judgment collected in Türkiye through our recognition and enforcement line. What you get: the calculation report, a strategy note and the deadline calendar.

Who Engages Us

Both sides of the table

On the claimant side you most often find distributors whose contract has been terminated or is about to be, and agents seeking the value of a portfolio they spent years building. On the defence side: manufacturers shrinking their network or moving to direct sales, and German brands parting company with their Turkish distributor. On both sides the outcome is decided by documents written long before the hearing: the performance records, the provenance of the customer lists, and the archive of reasons given for termination. That is why we look at the file as it actually stands at the first meeting, and give you a realistic range before you leave it.

Why Köksal?

We are by your side for Goodwill Indemnity Claims

With a team that has run cases in both directions (Turkish distributor ↔ German manufacturer, and vice versa), we model the claim and the defence in the language of numbers, set realistic ranges in negotiation and mediation, and, where necessary, coordinate the litigation across the two countries (our Germany Desk + recognition and enforcement). The preventive side of network design is in our Distributorship focus.

Köksal team multidisciplinary work
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Other Applications of This Service

Litigation — our other specialised solutions in this area.

Litigation — back to the parent service
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Matter Connections

The focus areas, practice areas, desks and legislation connected with this sub-service.

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The Team Delivering This Service

With our multilingual team of lawyers, well-versed in Turkish and German law, we are by your side.

In German practice, the claim must be asserted within one year of termination; under Turkish law, limitation and the way the claim is raised are assessed on a case-by-case basis. A deadline map…

As a rule, termination by the distributor itself defeats the claim; however, there are exceptions where the manufacturer’s conduct forced the termination. That is why the structuring of the termination is a strategic decision.

Waivers given before the relationship ends are, as a rule, invalid; similar protection exists under German law as well. The contract clause alone does not kill the claim — the analysis of the conditions is decisive.

Most files are resolved by negotiation once a solid calculation model is put on the table; litigation is leverage that shows the strength of your evidence. First the model, then negotiation — and litigation if necessary.

Service

Goodwill Indemnity Claims — get the right legal support.

Let us identify the right solution together, drawing on our experience in Türkiye and the DACH region.