What is Arbitration?

 

Arbitration is an alternative dispute resolution method whereby legal disputes arising or likely to arise between parties are resolved by arbitrators or an arbitral tribunal appointed by mutual agreement or through an arbitration center, instead of national courts. In today's commercial landscape, both domestically and internationally, arbitration is increasingly preferred for its efficiency, speed, and confidentiality.

 

Legal Nature of Arbitration

 

Arbitration is an extra-judicial mechanism through which disputes stemming from private law relationships -limited to matters that parties may freely dispose of- are resolved by independent and impartial arbitrators, with legally binding and enforceable decisions comparable to court judgments.

 

Conditions and Procedure for Arbitration

 

To initiate arbitration, a valid arbitration agreement must exist between the parties. Such an agreement may be concluded either prior to the dispute (e.g., through an arbitration clause in a contract) or after a dispute has arisen. The agreement may set forth the dispute resolution rules, seat of arbitration, number of arbitrators, applicable procedural rules, and the competent arbitration institution.

 

The arbitration process typically involves:

 

• Determination of the validity of the arbitration agreement

• Appointment of the arbitrator(s)

• Agreement on the seat of arbitration and procedural rules

• Submission of claims and defenses by the parties

• Evaluation of evidence and conduct of hearings

• Issuance of the arbitral award

• Recognition, enforcement, and execution of the award (if necessary)

 

Advantages of Arbitration

 

Compared to traditional court litigation, arbitration offers several advantages:

• Expedited resolution: Arbitration proceedings are typically faster than court trials.

• Expert arbitrators: Parties may choose arbitrators with specific technical expertise.

• Confidentiality: Hearings and awards are not public; commercial secrets are protected.

• Flexibility: Parties have significant control over procedural aspects.

• International enforceability: Awards are enforceable in over 170 countries under the 1958 New York Convention.

• Neutrality and independence: Especially vital for cross-border disputes.

 

Domestic and International Arbitration

 

Domestic arbitration refers to arbitration proceedings governed by Turkish Law and conducted within the Republic of Türkiye, primarily under Articles 407-444 of the Turkish Code of Civil Procedure (Law No. 6100).

 

International arbitration applies where at least one party is foreign, the dispute contains foreign elements, or the seat of arbitration is outside Türkiye. In Türkiye, international arbitration is governed by the International Arbitration Law No. 4686.

 

Our Arbitration Services

 

Our law firm provides comprehensive legal support at every stage of the arbitration process. Our core arbitration services include:

• Drafting and reviewing arbitration agreements

• Domestic arbitration consultancy and representation

• International arbitration consultancy and representation

• Representation in ISTAC (Istanbul Arbitration Centre) proceedings

• Strategy advice on litigation vs. arbitration

• Recognition and enforcement of arbitral awards

• Advocacy and evidence management in arbitral hearings

• Integration strategies with alternative dispute resolution methods

• Investor-State arbitration

 

Who May Use Arbitration?

 

• Commercial enterprises and corporations

• Foreign investors

• Government entities (within legal limits)

• Persons

• National and international legal entities and institutions

 

It is sufficient that parties conclude a valid arbitration agreement concerning an arbitrable matter. This allows for faster and more effective dispute resolution without resorting to courts.

 

Our firm is committed to protecting the rights of our clients in both domestic and international arbitration proceedings. We provide professional assistance at every stage of the arbitration process with a strategic, transparent, and result-oriented approach.

 

Please contact us for arbitration consultancy or to resolve your dispute through arbitral jurisdiction.