Arbitration is one of the alternative dispute resolution methods in which the parties select “arbitrators” instead of the state’s judicial authorities to resolve a specific dispute that has arisen or may arise between them. Before or after the emergence of the dispute, the parties can agree on the resolution of the dispute through arbitration by making an arbitration agreement or by placing an arbitration clause in the main contract. Since the jurisdiction of the courts to resolve the dispute is removed with the arbitration clause placed in the agreement or contract, the opposing party can object to the lawsuit filed in state courts if it violates the agreement.
In Turkish law, arbitration is mainly regulated in the Civil Procedure Law numbered 6100 and the International Arbitration Law numbered 4686. Article 407 of the Civil Procedure Law stipulates that the provisions of the Civil Procedure Law can be applied to disputes that do not involve foreign elements and for which Turkey is designated as the place of arbitration. It is envisaged that disputes arising from real rights on immovable properties or non-volitional actions of the parties are not eligible for arbitration. In the International Arbitration Law, it is stated that the International Arbitration Law can be applied in disputes involving foreign elements and for which Turkey is designated as the place of arbitration or as a result of the parties’/arbitrators’ choice.
However, since arbitration provides freedom to the parties in terms of the law or rules to be applied in arbitration, the language of arbitration, the arbitrators, the number of arbitrators, and the place of arbitration, the parties have the opportunity to decide these issues among themselves. At the same time, arbitration has many advantages in terms of many aspects that are important in commercial life. Some of these advantages include the resolution of disputes with speed and confidentiality, the possibility of selecting experts in the field as arbitrators, and providing flexibility in the trial.
As ONAL & ONAL Law Office, we provide legal support to our clients in various matters, including the preparation of arbitration agreements, the conduct of national and international arbitration cases, the recognition and enforcement of international arbitration and foreign arbitral awards in Turkish courts, and more.
