Arbitration Law

Since the International Arbitration Law entered into force in 2001, it has been one of the common procedures in Turkey. Arbitration, meaning in law, can be described as the agreement of parties to resolve disputes that have happened or may arise through arbitration rather than in court. This article will explain some important topics regarding the framework of Turkish arbitration law.

What are Arbitrable Disputes in Turkey? 

Arbitration law in Turkey allows parties to arbitrate a variety of disputes. For instance, commercial disputes, particularly those resulting from sales, distribution, and supply contracts, are accepted as arbitrable disputes in Turkey. In addition, disputes related to intellectual property rights, such as patents, trademarks, or copyrights, can be given as an example of arbitrable disputes. Disputes from construction, insurance, and employment contracts can also be arbitrable.

Benefits of Turkish Arbitration Law 

Turkish arbitration law offers different advantages compared to other dispute resolution procedures. The benefits of Turkish arbitration law are stated below.

  • In Turkey, arbitration processes can often be more effective and faster than regular court litigation. 
  • Arbitration processes in Turkey are usually confidential. This can be a significant factor when companies and individuals want to keep their legal conflicts out of the public eye.
  • The disputes can be decided by people who thoroughly understand the problems involved because the parties may choose arbitrators with experience in that relevant industry or subject field.
  • The arbitration process can be customized by each party to meet their specific wants and needs. They can determine the arbitration rules and the language used during the procedures.

    Arbitration Agreement 

    According to Turkish Arbitration law, an agreement is a legally enforceable contract between parties stating that their disputes would be resolved by arbitration rather than in court, as in many other countries. An arbitration agreement must be present to begin the process. For this reason, an arbitration agreement is significant for the arbitration procedures. Parties may choose to submit their disputes to arbitration either before the arbitration clause or after a dispute has already arisen, yet it must be in writing. 

    When drafting or entering into arbitration agreements, it is strongly advised to seek legal assistance from lawyers with experience in arbitration in Turkey to ensure compliance with national laws and international regulations. As an Istanbul law firm, you can consult our Istanbul Lawyer Firm to get full support for this field.

    Arbitration Agreement Executed Before the Dispute 

    Generally referred to as a pre-dispute arbitration agreement, it is a legally binding contract signed before an issue emerges. It states that any future issues arising from such contract shall be resolved by arbitration, not court action.

    Arbitration Agreement Executed After the Dispute 

    Within the scope of Turkish arbitration law, this happens when an arbitration agreement is made after a dispute has occurred, with the parties agreeing to arbitrate disputes through arbitration rather than through litigation in the courts. 

    International Arbitration Law in Turkey

    International arbitration law in Turkey is governed by Turkish International Arbitration Law (Law No. 4686), which also provides the legal framework for international arbitration proceedings in Turkey. The main purpose of international arbitration law is to set forth the policies and regulations for international arbitration proceedings in Turkey. Enacted in 2001, it applies to international commercial arbitrations in Turkey or has a considerable connection to Turkey.

    Arbitration Objections in Turkey 

    In Turkey, parties to arbitration proceedings are given the right to object in numerous ways throughout the arbitration process. These objections may be based on jurisdiction, procedures, or the legality of the arbitration agreement. 

    In Turkish arbitration law, arbitration objections can be divided into two categories.

    For jurisdictional objections, the parties object to the arbitral tribunal if it has no jurisdiction to hear the dispute, usually because the conflict does not fall within the scope of the arbitration agreement. Besides, an objection may arise if one party claims no legally binding arbitration agreement exists. 

    For procedural objections, a party may object to procedural irregularities or infringements of due process in the arbitration proceedings. In unfairness and inequality, a party may object during the arbitration process. 

    FAQ About Arbitration Law in Turkey 

    Let’s look at some frequently asked questions about Turkish arbitration law. If you have more questions related to arbitration law in Turkey, it is recommended to consult a Turkish lawyer firm. As Istanbul Lawyer Firm, we provide all the necessary information and legal consultancy to our clients in this field. With our qualified, experienced, and English-speaking lawyers in Turkey, we can assist you in your legal cases in the context of Turkish arbitration law. 

    How to Apply for Arbitration in Turkey 

    In Turkish arbitration law, applying for arbitration in Turkey includes several steps. First of all, preparing a notice of arbitration that complies with the requirements of the arbitration agreement and applicable arbitration rules is recommended. In line with the arbitration agreement or the established arbitration rules, you need to share the notice of arbitration with the other party. Then, the respondent has to respond within 30 days. The arbitration process starts after deciding on the arbitrators who are appointed. 

    Who Pays The Arbitration Costs? 

    If there is no agreement, the arbitration agreement between the parties or the arbitral tribunal can decide how the expenses of the arbitration will be allocated. Yet, it may change according to special circumstances, such as the terms of the agreement or the discretion of tribunals. 

    How Many Months Does It Take for Arbitration to be Concluded?

    Since the duration of an arbitration process depends on several factors, such as the complexity of the dispute or arbitration rules, the exact length of arbitration can vary. Yet, usually, the arbitration can be concluded in several months.