Arbitration in Turkey
"How does commercial arbitration work under Turkish law?"
Quick Answer
Turkey recognizes both domestic and international arbitration. The Turkish International Arbitration Law aligns with UNCITRAL Model Law for cross-border disputes.
Legal Framework
The legal framework is dual-structured based on the dispute's nature. Domestic arbitration (under Code of Civil Procedure No. 6100) applies to purely local disputes with no foreign element. International arbitration in Turkey is primarily governed by Law No. 4686 when the dispute has a foreign element and the seat of arbitration is in Turkey.
Key Points to Remember
- Mediation is a prerequisite for commercial litigation, though parties may choose arbitration
- International arbitration is governed by Law No. 4686 (UNCITRAL-based)
- Turkey is a party to the New York Convention on enforcement. Foreign arbitral awards are generally enforced through recognition and enforcement proceedings, subject to the limited refusal grounds under the New York Convention.
- Arbitral awards are legally binding and enforceable in Turkey
Practical Implications
Alignment with international standards ensures strict respect for party autonomy, allowing parties to choose the language, seat, and rules of arbitration. Turkish courts have limited intervention powers, primarily offering assistance for interim measures or gathering evidence annulment (setting aside) at the seat of arbitration, rather than a full appeal on the merits. Additionally, foreign arbitral awards are recognizable and enforceable in Turkey under the New York Convention framework, subject to statutory conditions.
Arbitrability
Under Turkish law, not all disputes are arbitrable; arbitrability generally depends on whether the subject matter is within the parties' disposal. Consequently, disputes relating to real rights over immovable property in Turkey or other matters strictly reserved for state courts may fall outside the scope of arbitration.
Arbitration Clause Essentials
- Clear Intent: Unambiguous expression of the parties' agreement to arbitrate
- Seat of Arbitration: Defines the procedural law (lex arbitri) and court jurisdiction
- Rules & Institution: Choice of institutional rules (e.g., ICC, ISTAC) or ad hoc procedure
- Tribunal Composition: Number of arbitrators and appointment method
- Language: Language(s) to be used in the proceedings
Disclaimer: The information provided in this glossary entry is for general informational purposes only and does not constitute legal advice. For specific cases, please seek professional legal counsel.
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