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Commercial Dispute Resolution In Turkey

In this article, Att. Bedrettin Gürcan and Bengü Sümek will mention Commercial Dispute Resolution in Turkey with all the details.

INTRODUCTION

In today’s conditions, technology is developing rapidly so the interaction and communication between people increase rapidly. This development makes people look for alternative solutions for legal disputes. The first way to resolve disputes is to apply to the courts.

Alternative dispute resolution methods provide neutral third party assists the parties in resolving the dispute and provides solutions. In other words, Alternative Dispute Resolutions are dispute resolution methods that serve as an alternative to the courts.

Commercial Dispute Resolution In Turkey

Dispute resolution in Turkey includes litigation and alternative dispute resolutions. The judicial courts consist of the civil and criminal courts. A review of the rulings of the judicial courts is handled by the Court of Appeals. To resolve disputes between merchants within the scope of the Turkish Commercial Code, the “Commercial Courts” are the civil courts established.

Alternative dispute resolution is usually considered to be an alternative to litigation. Arbitration is the resolution of disputes apart from a state jurisdiction. Turkey has the necessary legislative regulations since it has drafted its International Arbitration Code dated 2001 in accordance with UNCITRAL Model Law. Arbitration is a well-established and widely used method of resolution of disputes.

The Istanbul Arbitration Centre (ISTAC) is an independent institution providing efficient dispute resolution services for both international and domestic parties. The ISTAC’s dispute resolution services are available to all contracting parties, without any membership requirements.

Mandatory Mediation For Commercial Disputes

The amendments to Law no. 7155 introduced a mandatory mediation process before litigation for commercial disputes starting from 1 January 2019. With this new law the scope of mediation as an alternative dispute resolution tool is extended to commercial disputes. All disputes arising from commercial relations between legal entities or natural persons are in the scope of mediation.

The application of mediation before the lawsuit is mandatory for commercial disputes. In this context, mediation is an institution that is applied as a requirement before the lawsuit.

CONCLUSION

Reasons such as legal fees, long litigation process have made international trade actors look for alternative ways to resolve disputes. Alternative dispute solution methods are encouraged by many international regulations today.

The Constitutional Court’s approach highlights that if every dispute goes to courts, it will result in an increase in caseloads and length of trials, which can be against the parties’ interests. For commercial disputes it is mandatory to apply for mediation after amendments.

The parties that have a commercial dispute between, can apply for a lawsuit after the mediation process. Parties of dispute can initiate litigation process or apply for alternative dispute resolutions such as arbitration Despite the government’s regulatory efforts to encourage alternative dispute resolution, mediation, and arbitration, most of the commercial disputes end up in the courts.

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