Istanbul Arbitration Centre (ISTAC)
"What is the Istanbul Arbitration Centre (ISTAC) and how does it handle disputes?"
Quick Answer
The Istanbul Arbitration Centre (ISTAC) is one of Turkey’s leading arbitration institutions providing administered arbitration services. Its rules set out modern procedures for resolving commercial disputes by arbitration.
Dispute Resolution in Turkey
The Istanbul Arbitration Centre (ISTAC) administers arbitration proceedings under its institutional rules. For businesses contracting with Turkish counterparties, choosing ISTAC, court litigation, or other arbitration institutions can affect speed, confidentiality, costs, and enforceability.
Key Points to Remember
- Mandatory mediation is required in many commercial disputes involving monetary claims before filing a lawsuit in Turkish courts
- Turkish courts include specialized commercial courts and commercial divisions handling business disputes
- Arbitration is recognized under Turkish law, and arbitral awards may be enforceable subject to statutory requirements
- Turkey is a party to the New York Convention, supporting cross-border recognition and enforcement of foreign arbitral awards
Choosing the Right Approach
The choice between litigation, arbitration, and mediation depends on factors such as the dispute type, confidentiality needs, the seat of arbitration, interim measures, and where enforcement will be sought. International parties often select arbitration for cross-border contracts to manage enforcement and neutrality concerns.
A well-drafted dispute resolution clause typically addresses the forum (ISTAC or another institution), seat, language, number of arbitrators, governing law, and interim relief, which can materially affect time and cost.
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This page is provided for general informational purposes only and does not constitute legal advice or establish a lawyer client relationship.
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