in Legal Success
| Reading Time: 2 Minutes
New Centre of Arbitration in Istanbul
The trend of alternative dispute resolutions is in demand nowadays in Turkey. After the new regulations about mediation, the eyes are on the arbitration now. In the mid-position of Europe, Asia, the Middle East and North Africa, a new arbitration institution is on the stage now: Istanbul Arbitration Centre (ISTAC).
In the fast-developing arbitration world, ad hoc and institutional arbitration are two options for dispute resolution. However, institutional arbitration centres have specific importance.
The arbitration culture has not developed in Turkey until the last years as it developed in Europe. The main reason for the non-development is the inconsistency of the Turkish Court of Appeal’s chambers about the appeals of challenges to arbitral awards. Turkish Court of Appeals has a wide judicial discretion about “quashing” the arbitral awards. It is possible that it cannot be executed in Turkey after receiving an arbitral award from an arbitration institution or an ad hoc arbitration. Therefore the confidence in the arbitration concept could not be built.
Along with the new developments, ISTAC plans to change people’s biases about arbitration.
ISTAC started its activities in November 2015. The Rules of ISTAC were prepared by the Professional arbitrators and academic members of Turkey. The Rules of the world’s leading arbitrational institutions like the International Chamber of Commerce (ICC), the American Arbitration Association (AAA), London Court of International Arbitration (LCIA) served as models for the Rules of ISTAC.
Fast Track Arbitration Rules and Emergency Arbitrator Rules are parts of ISTAC Rules, and the aim is to speed up the proceedings in the international arbitration system of Turkey.
The most important advantage of ISTAC is the enforcement of the awards. If one or both parties are residents, awards can be enforced as domestic awards, which means any enforcement decision or further court fees are not needed.
We strongly believe that this new international arbitration institution will increase the importance of alternative dispute resolutions. Istanbul will be the new arbitration centre of Europe, Asia, the Middle East, and North Africa.
What’s The Importance of the Istanbul Arbitration Centre?
The Istanbul Arbitration Centre is particularly essential for international businesses doing business in Turkey since it allows them to settle disputes via a specialist institution in Istanbul rather than through the long judicial process.
It is also critical for Turkish enterprises to resolve their issues at the local arbitration centre rather than at other international arbitration institutions since this would greatly reduce their arbitral costs.
Another fundamental goal of the Istanbul Arbitration Centre is to raise knowledge of arbitration and other forms of alternative conflict resolution in Turkey and abroad. It is also anticipated to become a regional meeting and conference centre for international arbitration and alternative dispute resolution.