Expert legal support for effective and specialized dispute resolution.

Arbitration Services

AESY Legal provides comprehensive arbitration services, ensuring swift and confidential resolution of disputes through expert arbitrators and a streamlined process.

Arbitration Services

Arbitration is a method of resolving disputes that arise from a contractual or non-contractual legal relationship, where parties agree to have their disputes settled by one or more arbitrators, instead of going to court. The arbitration agreement is a crucial component, requiring the mutual consent of the parties involved and must be in writing to be valid. This agreement can be a separate contract or a clause within an existing contract.

Key Elements of Arbitration

Arbitrators:
Arbitrators are selected by the parties and do not hold any official capacity like judges. The parties have the freedom to determine the number of arbitrators, although it must be an odd number. If not specified, a panel of three arbitrators is the default arrangement.
Arbitration Agreement:
Arbitration agreements must pertain to specific or determinable disputes. Vague agreements like “all disputes between the parties shall be subject to arbitration” are not valid. The process of appointing arbitrators is governed by general principles unless otherwise agreed by the parties.
Arbitration Procedure:
The procedural aspects of domestic arbitration are governed by the Code of Civil Procedure, while international arbitration is governed by the International Arbitration Law. The validity of the arbitration agreement itself is subject to general legal rules.
Arbitration Period:
Unless otherwise agreed, the arbitrator must issue a decision within one year from their appointment or the first meeting of the arbitration panel. This period can be extended by mutual agreement or by a court decision.
Legal Recourse Against Arbitration Decisions:
Under both the International Arbitration Law and the Code of Civil Procedure, the only legal recourse against an arbitration decision is to file an annulment action, which must be heard by the regional court where the arbitration took place.

Advantages of Arbitration

Arbitration offers several advantages over traditional court proceedings, including speed, specialization, and lower costs. The process is also governed by strict confidentiality, protecting trade secrets and sensitive information. Parties have the freedom to choose arbitrators who are experts in the subject matter of the dispute, ensuring a more informed and specialized resolution.

Moreover, arbitration decisions are enforceable both in Turkey and internationally, providing certainty and finality. The absence of an appeal process further shortens the resolution time and reduces costs. Additionally, the ability to choose the location and language of the arbitration can eliminate unnecessary expenses related to travel and translation.

Frequently Asked Questions (FAQ)

What is an arbitration agreement, and why is it important?

An arbitration agreement is a written contract in which parties agree to resolve their disputes through arbitration. It is essential because it sets the framework for the arbitration process, including the selection of arbitrators and the scope of disputes that can be resolved.

What are the key benefits of choosing arbitration over traditional litigation?

Arbitration is generally faster, more cost-effective, and allows for specialized expertise in resolving disputes. It also offers confidentiality and finality, with decisions being enforceable both domestically and internationally.

How is the arbitration process different from court proceedings?

Unlike court proceedings, arbitration is less formal, and parties have more control over the process, including the selection of arbitrators and the rules of procedure. The absence of an appeal process also makes arbitration quicker than traditional litigation.