Mediation and Arbitration in Turkey: Alternative Dispute Resolution
Atalı & Tagi assists clients with alternative dispute resolution mechanisms in Turkey, including mediation and commercial arbitration, taking into account the specific challenges of cross-border disputes.
Mediation and Arbitration as Dispute Resolution Tools
Alternative Dispute Resolution (ADR) encompasses various mechanisms that allow parties to resolve disputes without full-scale court proceedings or to refer a dispute to arbitration.
In Turkey, two of the most important ADR mechanisms are mediation (Arabuluculuk) and arbitration (Tahkim). Depending on the nature of the dispute, choosing one of these mechanisms can significantly affect the procedure and overall strategy for resolving the conflict.
Mediation
A negotiation-based procedure involving an independent mediator, aimed at helping the parties reach a mutually acceptable settlement without the mediator deciding the merits of the dispute.
Arbitration
An alternative dispute resolution mechanism in which the parties refer their dispute to an arbitral tribunal in accordance with an arbitration agreement.
Mediation in Turkey (Arabuluculuk)
Turkish law provides for mandatory mediation as a precondition to bringing court proceedings for certain categories of disputes. These include, among others, certain commercial and employment disputes specified by law.
Where mandatory mediation applies, initiating the mediation process is an important procedural step. Parties may also choose to use voluntary mediation in other circumstances where permitted by applicable law.
Our Mediation Services
- Legal analysis of the dispute before the mediation process begins.
- Preparation of the client's legal position and supporting documents.
- Legal assistance during mediation negotiations.
- Preparation and review of settlement agreements reached by the parties.
When Mediation Can Be Effective
- Commercial disputes between companies and business partners.
- Employment disputes where mediation is required or appropriate.
- Disputes where the parties wish to preserve their business relationship.
- Cross-border disputes where minimizing time and costs is important.
The purpose of mediation is not to impose a decision on one party, but to help the parties reach a legally structured settlement.
Commercial Arbitration in Turkey (Tahkim)
Arbitration can be used to resolve complex commercial and international disputes where the parties have entered into a valid arbitration agreement or where another legal basis for arbitration applies.
For international transactions, it is particularly important to draft the arbitration clause carefully at the contract stage. Its wording may affect the seat of arbitration, applicable rules, appointment of arbitrators, language of the proceedings and the subsequent enforcement of the award.
Arbitration Representation
- Preparation of legal positions and procedural submissions.
- Representation of clients in arbitration proceedings.
- Review of arbitration agreements and procedural issues.
- Assistance with disputes in Turkey and international arbitration proceedings.
Arbitration Clauses
- Drafting arbitration clauses for commercial agreements.
- Review of existing contractual arbitration provisions.
- Assessment of the appropriate arbitral institution and seat.
- Analysis of applicable law and potential enforcement issues.
International Arbitration and ISTAC
International commercial disputes may involve arbitral institutions and international arbitration rules. In Turkey, one of the specialized institutions is the Istanbul Arbitration Centre (ISTAC).
In a cross-border dispute, it is important to assess not only whether arbitration is available, but also the prospects of recognition and enforcement of the resulting award in the relevant jurisdiction.
Recognition of Arbitral Awards
Turkey is a party to the 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards. In practice, the enforceability of a particular award depends on compliance with the requirements of applicable domestic law and international obligations.
Enforcement in Turkey
Where a foreign arbitral award is to be enforced in Turkey, the applicable legal procedure for recognition and enforcement must be followed.
Why Choose Atalı & Tagi?
Turkish Law
Assistance based on Turkish law and experience with disputes involving companies and foreign investors in Turkey.
Multilingual Support
Legal documents and client communication can be handled in English and Turkish.
Cross-Border Disputes
We take into account the international nature of commercial disputes, including applicable law, jurisdiction and enforcement.
FAQ — Mediation and Arbitration in Turkey
1. What is mandatory mediation in Turkey?
Turkish law requires mandatory mediation before filing a court action for certain categories of disputes. Where mandatory mediation applies, completing the mediation process is a necessary procedural step before bringing the relevant claim before the court.
2. Can a foreign arbitration agreement be used in Turkey?
The validity and effect of a foreign arbitration agreement depend on its wording, the applicable law and the circumstances of the dispute. Turkey recognizes international arbitration agreements subject to the applicable legal requirements.
3. Can mediation be conducted online in Turkey?
Depending on the circumstances and applicable procedural requirements, mediation discussions may be conducted remotely. This can be particularly practical in cross-border disputes where the parties are located in different countries.
4. How long does arbitration take in Turkey?
The duration of arbitration depends on the arbitral institution, the tribunal, the complexity of the dispute, the amount of evidence and the procedural conduct of the parties. There is therefore no universal timeframe applicable to every arbitration.
5. What is the difference between arbitration and court proceedings?
Arbitration is an alternative dispute resolution mechanism based on an agreement between the parties. Unlike proceedings before a state court, arbitration generally allows the parties, within the applicable legal and institutional framework, to participate in selecting arbitrators and agreeing on certain procedural matters.
Need to Resolve a Dispute?
Tell us about your situation, commercial dispute or contractual terms. We can conduct a preliminary legal assessment and help determine which dispute resolution mechanism may be appropriate based on Turkish law and the circumstances of your case.