The Commercial Dispute Resolution in Turkey

By Ilgın Yazici and Didem Sönmez, Financial Axis Independent Audit & Consulting Inc

The legal environment in Turkey has progressed in an investorfriendly fashion in recent years and alternative methods have been adopted for commercial disputes. Litigation is the most commonly used method for the settlement of disputes in Turkey. Civil litigation proceedings are conducted before the courts and disputes are generally handled by expert judges. The Code of Civil Procedure is the main legal regulation and, after making an ex offcio assessment, the court decides according to its discretion.

Due to heavy workload and longlasting adjudication processes, Alternative Dispute Resolutions (ADR) have become more popular in recent years. The two most preferred ones are arbitration and mediation.

Arbitration is generally used for solving international disputes according to the International Arbitration Code, which is modelled on the UNCITRAL Model Law. In Turkey, with its key geographical location, the Istanbul Arbitration Centre (ISTAC) is providing independent institutional arbitration services for both domestic and foreign companies and ISTAC’s services are available for all contracting parties. Especially for international disputes, arbitration is mostly preferred since it offers a more affordable and fasterpaced alternative to the courts. The arbitral awards are final, binding, and enforceable, just like court decisions.

Turkey continues to integrate mediation as an amicable disputeresolution method. Before arbitration or litigation process, parties may prefer to have a mediation agreement to reach a voluntary resolution of their disputes, which is useful in cost and time effcient manner. Although mediation is an optional method, it has become mandatory for some commercial cases from the beginning of 2019. Therefore, parties to a commercial dispute for monetary claims are now obliged to apply to a mediator before applying to the commercial courts. Otherwise, the case will be dismissed by the court on procedural grounds.

Ilgin Yazici

GGI member firm
Financial Axis Independent Audit & Consulting Inc
Advisory, Auditing & Accounting, Corporate Finance, Fiduciary & Estate, Law Firm Services, Tax
Ankara, Turkey
T: +90 312 428 1444
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: finansaleksen.com.tr

Founded in 2000, Financial Axis Independent Audit & Consulting Inc provides audit, tax, legal, and consultancy services. They specialise in data protection and capital markets. All their auditors are eligible for CFA, CISA, CISM, CGEIT, and CRISC. All their lawyers are registered in the Turkish and New York Bar Associations.

Ilgin Yazici and Didem Sonmez are Legal Counselors with Financial Axis. Mrs Yazıcı focuses on commercial issues, data protection, IT and intellectual property law & regulatory compliance. Didem Sönmez is specialised in international commercial law, corporate governance, mergers & acquisitions.

Didem Sonmez

GGI member firm
Financial Axis Independent Audit & Consulting Inc
Advisory, Auditing & Accounting, Corporate Finance, Fiduciary & Estate, Law Firm Services, Tax
Ankara, Turkey
T: +90 312 428 1444
E: This email address is being protected from spambots. You need JavaScript enabled to view it.
W: finansaleksen.com.tr

Published: Litigation & Dispute Resolution Newsletter, No. 16, Summer 2022 l Photo: Koraysa - stock.adobe.com