TÜRKIYE Law and Practice Contributed by: Faruk Aktay, Ayşe Müge Aktay and İrina Gül Coşkun, Aktay Law Firm
or incurred through a party’s own fault. Where multi- ple parties are held liable, costs may be apportioned among them or imposed jointly and severally depend-
While parties are free to decline settlement, attend- ance at the mandatory initial mediation meeting is compulsory. A party that fails to attend without jus- tification may be ordered to bear the related media- tion costs. Apart from this attendance-based conse- quence, there are no separate sanctions for refusing ADR. Arbitration is also encouraged in commercial matters, though it remains voluntary unless contrac- tually agreed. 12.3 ADR Institutions Türkiye has a well-organised institutional framework for ADR. Mediation is administered and supervised by the Department of Mediation within the Ministry of Justice, supported by an official registry of media- tors and accredited training institutions. The system is well developed, particularly due to the introduction of mandatory mediation in commercial, labour and consumer disputes. Arbitration is also institutionally supported, with organisations such as ISTAC and various chamber- based arbitration bodies providing modern procedural rules and case management. Overall, ADR institutions in Türkiye are structured, regulated and widely used, contributing to faster and more efficient resolution of disputes. Arbitration in Türkiye is governed by the CPC for domestic arbitration and by Law No 4686 for inter- national arbitration seated in Türkiye. An arbitration agreement must be in writing, and the parties may appoint one or three impartial and independent arbi- trators. The parties are free to determine the proce- dural rules, including whether a hearing will be held; in the absence of agreement, the tribunal conducts the proceedings subject to fundamental due-process requirements. Domestic arbitral awards may be enforced through the competent civil court, and foreign awards are recog- nised and enforced under the New York Convention and Articles 60–63 of the Private International Law 13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration
ing on the nature of the judgment. 11.3 Interest Awarded on Costs
Interest may be awarded on court costs, as they con- stitute a monetary obligation recoverable by the pre- vailing party. Unless the judgment specifies another date, legal interest generally begins to accrue from the date on which the judgment becomes final. The appli- cable rate is the statutory legal interest rate in force during the relevant period. Interest is calculated for the period between the date of finalisation and the date of payment and may be recovered through enforcement proceedings, together with the underlying costs. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country Mediation is well established in Türkiye and is viewed as an efficient and cost-effective method of resolving disputes. Law No 6325 provides the legal framework, and mediation is mandatory before initiating a num- ber of civil actions, including labour, commercial and consumer disputes. Arbitration is also widely used, particularly in com- plex commercial and international matters, and is governed by Law No 4686 as well as the arbitration provisions of the CPC. Institutional arbitration, includ- ing before the Istanbul Arbitration Centre (ISTAC), has gained prominence in recent years. Informal settlement mechanisms are also common, but mediation and arbitration remain the most preva- lent ADR methods in practice. 12.2 ADR Within the Legal System Turkish law actively promotes ADR, particularly medi- ation. For certain types of disputes – including labour, commercial and consumer matters – mediation is a mandatory condition of filing a lawsuit, and the medi- ator’s report forms part of the court filing. Lawsuits brought without completing mandatory mediation are procedurally dismissed.
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