Dispute Resolution (Arbitration & ADR)
Disputes are addressed through litigation and, where appropriate, alternative dispute resolution (ADR) methods such as arbitration and mediation.
Experience in international arbitration and ADR contributes to the strategic management of the process.
Services in This Area
- Representation in domestic and international arbitration proceedings
- Conducting proceedings under institutional rules such as ISTAC and the ICC
- Drafting and reviewing arbitration clauses and arbitration agreements
- Actions for the setting aside, recognition and enforcement of arbitral awards
- Representation in mandatory and voluntary mediation processes
- Conducting negotiations and settlement discussions
- Strategic advice on the choice of dispute resolution method
- Mediation settlement agreements and enforceability annotation procedures
What Is Arbitration and When Is It Preferred?
Arbitration is a method of adjudication in which the parties agree that their dispute will be resolved by arbitrators of their choosing rather than by the state courts. Domestic arbitration is governed by the Code of Civil Procedure, while disputes with a foreign element fall under the International Arbitration Law No. 4686.
Arbitration is favoured particularly in commercial and cross-border disputes because of its confidentiality, the parties' ability to shape the procedure, and the enforceability of awards in a large number of countries under the New York Convention. Arbitrability and the validity of the arbitration agreement are assessed separately for each dispute.
How Does Mediation Work in Turkey?
Mediation, governed by Law No. 6325, is a voluntary and confidential process in which the parties seek a solution with the assistance of a neutral mediator. Applying to a mediator before litigation is a procedural precondition for commercial monetary claims, most employment disputes, consumer disputes, and disputes concerning leases, condominium ownership and neighbour rights.
If the parties settle, the settlement agreement has the force of a court judgment once an enforceability annotation is obtained, or where it is signed jointly by the parties' lawyers. If no settlement is reached, the process is closed with a final report and the way to litigation opens; statements made during the process remain confidential.
Why Does Choosing the Right Dispute Resolution Route Matter?
Litigation, arbitration and mediation produce different outcomes in terms of duration, cost, confidentiality, enforceability of the decision and the preservation of the commercial relationship. The most suitable route is determined by weighing the nature of the dispute, the countries in which the parties are located and the terms of the contract together.
A carelessly drafted arbitration or jurisdiction clause can itself give rise to a separate dispute over jurisdiction later. Legal support is therefore provided to plan dispute resolution provisions at the contracting stage and to set strategy early once a dispute arises.
Frequently Asked Questions
- Is an arbitral award as binding as a court judgment?
- Yes; arbitral awards are binding on the parties and, once final, are enforceable in the same way as court judgments. An award may be challenged only through a setting-aside action on the limited grounds listed in statute; there is in principle no fresh review of the merits. The fate of a specific award may vary with the seat of arbitration and the applicable rules.
- In which cases is mediation a precondition to litigation?
- Commercial claims for the payment of money, the majority of employment disputes and consumer disputes are subject to mandatory pre-litigation mediation. As of 1 September 2023, disputes arising from leases, condominium ownership and neighbour rights, as well as partition actions, were also brought within this scope. Whether a specific claim is covered is assessed according to the nature of the dispute.
- How is a foreign arbitral award enforced in Turkey?
- Enforcing a foreign arbitral award in Turkey requires a recognition and enforcement action, conducted primarily under the New York Convention, to which Turkey is a party, and the private international law legislation. The court does not review the merits of the award; it examines only whether any of the grounds for refusal listed in the Convention exist. How the process unfolds depends on the country where the award was rendered and the specific case.
- Is arbitration or litigation the better option?
- There is no single answer; arbitration offers confidentiality, flexibility and international enforceability, while the state courts may be mandatory or more practical for certain types of dispute. Cost, duration, the nature of the dispute and the location of the opposing party should be weighed together. The appropriate route is determined by the circumstances of each specific dispute.
These answers are for general information only and do not constitute legal advice. For an assessment of your specific situation, please consult a lawyer.
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