Arbitration and Dispute Resolution
Arbitration and dispute resolution is a mechanism that enables disputes that may arise between the parties to be resolved by alternative means outside of court. This process is carried out by an arbitrator or arbitral tribunal and is generally preferred in cases where the parties are seeking a faster, less costly and confidential solution. Here are the key points to note about arbitration and dispute resolution:
1. Definition and Purpose:
– Arbitration:* It is an alternative dispute resolution method in which the parties apply to an arbitrator or arbitral tribunal of their choice instead of a court to resolve their disputes.
– The goal is for disputes to be resolved faster, at less cost, and with less formal process.
2. Arbitration Process:
– The arbitration process usually begins within the framework of established rules. The parties determine in advance the terms of the arbitration, the appointment of the arbitrator, and the dates of the hearing.
– The arbitrator or arbitral tribunal shall hold sessions to evaluate the evidence submitted by the parties and make a decision.
3. Arbitration Boards:
– There are international or local arbitration institutions that provide specific rules and standards for arbitration. For example, ICC (International Chamber of Commerce), LCIA (London Court of International Arbitration) and TURKTAK.
– The Authority assists the parties in appointing arbitrators, determining the rules and conducting the proceedings appropriately.
4. Arbitration Agreement:
– By including an arbitration clause in their contract, the parties may agree that future disputes will be resolved through arbitration.
– The arbitration agreement must be in writing and meet certain conditions.
5. Qualifications & Advantages:
– Fast and Effective Resolution: Arbitration processes usually take less time than courts.
– Confidentiality: Arbitration often provides a more confidential environment than open court processes.
– Expertise: Selecting arbitrators in accordance with their areas of expertise allows the parties to receive a more in-depth evaluation on specific issues.
6. Binding Decisions:
– Awards rendered as a result of arbitral proceedings have an international reputation and can usually be enforced in courts.
– However, the parties may apply to the courts for enforcement of the judgment. Turkey is subject to the Arbitration Law No. 4686.
7. Objection Process in Arbitration:
– There is a limited remedy for appeals against arbitral awards. Usually, an objection can be made by applying to the court only on grave grounds such as illegality and procedural deficiencies.
8. Legal Audit:
– Arbitration is not subject to a review process, such as the review of court decisions. However, decisions contrary to the basic principles of laws and public order may be considered invalid.
9. Arbitration and International Dispute Resolution:
– International commercial disputes are often resolved through arbitration. This is because the parties are from different countries and different legal systems can be applied.
10. Resolution of War or Diplomatic Disputes:
– Arbitration is used not only in commercial disputes, but also in the resolution of disputes between states. In this context, arbitration plays an important role in international relations.
Arbitration and dispute resolution is an important mechanism that allows parties to resolve their disputes in a simple and effective way with less time and cost. The effectiveness of this process depends on the parties’ knowledge of cooperation, the determination of the terms of the contract and the rules of arbitration.
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