International Arbitration in Turkey - Ongur & Partners

International Arbitration in Turkey

We are leading International arbitration lawyers in Turkey with deep experience representing many foreign and local clients before ICC, Milan Chamber of Commerce, Istanbul Arbitration Centre, and Ad Hoc Arbitration in Turkey. We are proud of successfully represent many foreign and local clients during their Arbitration Processes before International Arbitration Institutions and as being among the best arbitration law firms in Turkey, receiving several awards from international authorities regarding our qualified Turkish arbitration services. In 2019, we received the best arbitration law firm award in Turkey from the GLE Global Law Experts as well as we are winner of Leading Arbitrator Law Firm award from AI Acquisition International.

International Arbitration in Turkey

Award wining International Arbitration Lawyers in Turkey….

In Turkish Law, the arbitration can be defined as resolution of disputes that arise within a scope of issues, which can legally be settled via arbitration through individuals called “arbitrators,” rather than applying to Turkish state jurisdiction.

In the Turkish arbitration Law system, the parties prefer to be settled via arbitration instead of state jurisdiction in today’s business environment because of impartiality, speed resolution opportunities, and cost-efficiency of the arbitration processes in Turkey. Indeed, resolution of international disputes via international arbitration in Turkey takes between 6 to 18 months instead of a standard commercial case in Turkey takes a minimum duration of 24 months up to 36 months or with some specific case even longer. Another advantage of arbitration in Turkey is that it provides impartial jurisdiction, a quicker process than Turkish state jurisdiction, and effective resolution mechanisms in Turkey.

Our experiences in Turkish Arbitration Law differ from our competitors with international experiences and thanks to our international lawyer partners who collaborate with us during the arbitration services related to Turkey. Turkish and international parties who are doing business in Turkey prefer to settle disputes before Istanbul Arbitration Centre, ICC (International Chamber of Commerce), ICSID (International Center for Settlement of Investment Disputes) Milan Chamber of Arbitration or LCIA (London Court of International Arbitration).

Indeed, arbitration lawyers in Turkey are recommended very frequently to try to resolve the disputes before Arbitration rather than litigation.

ICC ARBITRATION (INTERNATIONAL CHAMBER OF COMMERCE)

ICC Arbitration in Turkey commonly used by both international Turkish Companies during their contracts. It is known ICC is an institute that deals with the resolution of disputes before the International Court of Arbitration, affiliated with the International Chamber of Commerce (ICC) according to ICC Dispute Resolution Rules since 1923.

icc arbitration

International Court of Arbitration is composed of a chairman, a vice-chairman, and 50 members. The ICC Council elects the chairman and the chairman appoints the vice-chairman. The Council appoints the members upon recommendation of the ICC National Committee. International Court of Arbitration has a Secretariat.

The party who wishes to request arbitration under ICC Dispute Resolution Rules shall deliver their request for arbitration to the Secretariat and the Secretariat shall notify the Claimant and the Respondent that such request is received and the date of delivery thereof. The date of delivery of the request to the Secretariat shall be considered to be the beginning date of the arbitration procedure in all cases.

Within the framework of ICC Dispute Resolution Rules, the decision on disputes shall be made by one and/or three arbitrators. If parties cannot agree on the number of arbitrators, the Council appoints only one arbitrator. If the Council determines that it is necessary to appoint three arbitrators for the dispute, each party shall nominate one arbitrator.

According to ICC Dispute Resolution Rules, the Arbitration Board should make the final decision in principle within 6 months. However, the Arbitration Board may extend the said period. The decisions of the arbitrators are binding upon the parties. ICC Dispute Resolution Rules can be found from the ICC’s web site.

ICSID ARBITRATION (INTERNATIONAL CENTER FOR SETTLEMENT OF INVESTMENT DISPUTES)

In 1965, the World Bank put a settlement and arbitration system into practice for investment disputes by establishing the International Center for Settlement of Investment Disputes (ICSID) under a convention. The Center is in Washington, D.C. where the headquarters of the World Bank is located.

Turkish Arbitration Law entered into force for investment disputes in Turkey in 1988 (Official Journal, 6.12.1988- 19830).

Three different legal mechanisms can be used in the request for arbitration before ICSID. Accordingly; a record must be provided in terms of resolution of disputes by request for arbitration before ICSID in the agreement signed between the investor and hosting state with regards to a certain investment; b. It is used in the cases where there is a bilateral investment agreement signed between the state to which the investor is registered and the state to which the investment is made, and the request for arbitration in terms of the dispute resolution is made before ICSID by basing on the provisions of a bilateral agreement.

To start the arbitration process by basing on the provisions of the bilateral agreement, the ICSID arbitration process should be foreseen in the agreement in case of dispute; c. It is possible to request arbitration in terms of resolution of disputes before ICSID by basing on the provisions of multilateral international agreements. For example, in a case where a multilateral investment agreement is signed between the state, where the investor is registered, and Turkey, namely European Energy Agreement: disputes which may arise between the investing company in Turkey and the invested state can be settled by ICSID arbitration. ICSID Rules can be found from the ICSID’s web site.

LONDON COURT OF INTERNATIONAL ARBITRATION (LCIA)

LCIA, which is established especially for rapid and economical resolution of international disputes in London in 1883, displays activities as one of the global institutions applied in the resolution of many disputes nowadays. Its name is changed in recent years. It is now called the “London Court of International Arbitration (LCIA)”. LCIA’s headquarters are located in London. In Turkey, many British and Turkish Clients would prefer to define the LCDA Arbitration in their contracts.

Although LCIA is based in London, 80% of the parties of disputes that are settled by LCIA are not citizens of the United Kingdom. This demonstrates that LCIA is an arbitration institute also for multinational disputes.

LCIA arbitration board functions for appointing courts, determining questions of the arbitrators, and taking fees under control in requests for arbitration according to LCIA Arbitration Rules.

Rapidness, economical and technical aspects of international disputes are considered. One of the main principles of LCIA is to ensure the amicable resolution of disputes if settling disputes is possible.

LCIA Arbitration Rules can be found from the LCIA’s web site

Related Legislation

Turkish International Arbitration Law Numbered 4686

Turkish International Arbitartion Law, Law no. 4686, 2001   International Arbitration Law (Law No. 4686 of 21 June 2001) in Jan Paulsson (ed), International Handbook on Commercial Arbitration, (Kluwer Law International 1984 Last updated: March 2005 Supplement No. 43 ) pp. Annex I – 1 – Annex I – 14   Official Gazette of 5 July 2001 No. 24453   Chapter One. General Provisions   Article 1   Purpose and scope   The purpose of this Law is to set forth the…

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Icsid Rules Of Procedure For Arbitration Proceedings

CHAPTER    1   ESTABLISHMENT  OF THE TRIBUNAL   Rule 1   General Obligations   (1) Upon notification of the registration of the request for arbitration, the parties shall, with all possible dispatch, proceed to constitute a Tribunal, with due regard to Section 2 of Chapter IV of the Convention.   (2) Unless such information is provided in the request, the parties shall communicate to the Secretary-General as soon as possible any provisions a…

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Icc Rules Of Arbitration

Article 1: International Court of Arbitration   1)   The International Court of Arbitration (the “Court”) of the International Chamber of Commerce (the “ICC”) is the independent arbitration body of the ICC. The statutes of the Court are set forth in Appendix I.   2)   The Court does not itself resolve disputes. It administers the resolution of disputes by arbitral tribunals, in accordance with the Rules of Arbitration of the ICC (the “Rules”). The Court is the only agreed by them regarding the number of arbitrators…

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Istac Arbitration Rules

ISTANBUL ARBITRATION CENTRE  ARBITRATION RULES Section I INTRODUCTORY PROVISIONS   ARTICLE 1   The Istanbul Arbitration Centre and the Board of Arbitration   The Istanbul Arbitration Centre is an independent institution of arbitration, which has been established for the purpose of providing institutional arbitration services.   The Board of Arbitration (Board) is an autonomous body of the Istanbul Arbitration Centre. The structure and functional procedures

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International Arbitration Law Of Turkey

ISTANBUL ARBITRATION CENTRE  ARBITRATION RULES Section I INTRODUCTORY PROVISIONS   ARTICLE 1   The Istanbul Arbitration Centre and the Board of Arbitration   The Istanbul Arbitration Centre is an independent institution of arbitration, which has been established for the purpose of providing institutional arbitration services.   The Board of Arbitration (Board) is an autonomous body of the Istanbul Arbitration Centre. The structure and functional procedures…

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Icsid Arbitration Rules

ICSID CONVENTION ARBITRATION RULES   Chapter I Establishment of the Tribunal Rule 1 General Obligations (1) Upon notification of the registration of the request for arbitration, the parties shall, with all possible dispatch, proceed to constitute a Tribunal, with due regard to Section 2 of Chapter IV of the Convention. (2) Unless such information is provided in the request, the parties shall communicate to the Secretary-General as soon as possible any provisions agreed by them reg…

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Lcia Arbitration Rules Effective 1 October 2014

LCIA ARBITRATION RULES Preamble Where any agreement, submission or reference howsoever made or evidenced in writing (whether signed or not) provides in whatsoever manner for arbitration under the rules of or by the LCIA, the London Court of International Arbitration, the London Court of Arbitration or the London Court, the parties thereto shall be taken to have agreed in writing that any arbitration between them…

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Uncitral Arbitration Rules

UNCITRAL Arbitration Rules (as revised in 2010) Section I.   Introductory Rules Scope of application Article 1   Where parties have agreed that disputes between them in ­respect of a defined legal relationship, whether contractual or not, shall be referred to arbitration under the UNCITRAL ­Arbitration Rules, then such disputes shall be settled in accordance with these Rules subject to such modification as the parties may agree.   The parties to an…

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