TÜRKIYE Law and Practice Contributed by: Faruk Aktay and Ayşe Müge Aktay, Aktay Law Firm
11.3 Interest Awarded on Costs It is possible to claim interest on court costs. In the Turkish judicial system, reimbursement of the expenses determined to cover the court costs that the winning party is obliged to pay is possible. In general, the legal interest process starts for court costs as of the finalisation of the judgment. When determining the interest, the legal inter- est rates determined for that period are taken into account. When calculating the interest, the period between the date of finalisation of the court decision and the date of payment is taken into account. 12. Alternative Dispute Resolution (ADR) 12.1 Views of ADR Within the Country Mediation is an important tool as it provides a quick and effective return in disputes. Law No 6325 on Mediation sets out the legal framework for mediation. Arbitration is one of the most preferred methods especially for commercial disputes and Law No 4686 regulates these pro- cesses. Conciliation is also a method of ADR, but it is not a formal process. These processes are supported by many seminars, conferences and training programmes. 12.2 ADR Within the Legal System There are regulations on the use of ADR. Reach- ing a faster solution is an incentive for the par- ties. The introduction of mediation as a pre- requisite before filing a lawsuit for commercial disputes also increases the use of ADR. If the parties refuse mediation without just cause, the court may impose certain sanctions. It imposes the obligation to pay part of the litigation costs on the party who refused mediation.
12.3 ADR Institutions There are institutions that offer ADR. The most commonly used of these are mediation and arbi- tration centres. There are training processes for professionals who want to specialise in ADR. It is possible to receive these trainings in official organisations such as the Turkish Mediation Office. In some cases, mediation is determined as a condition of litigation. As a result, it has become mandatory to use ADR. It is possible to reach solutions quickly by using these methods. 13. Arbitration 13.1 Laws Regarding the Conduct of Arbitration The CPC and the Arbitration Law, Law No 4686 apply to arbitration proceedings. In order for the arbitration process to begin, the parties must enter into a written arbitration agreement first. The parties determine the arbitration panel as one or three arbitrators. It is essential that the arbitrators are impartial and independent. The procedural rules to be applied may be determined between the parties. In terms of the hearing process, the parties may determine whether or not to hold a hearing. Domestic arbi- tration awards are enforceable by local courts. For foreign arbitration awards, the New York Convention and international arbitration regula- tions apply. An application must be made to the court for enforcement of the award. If the court approves the award, an enforcement order is issued. 13.2 Subject Matters Not Referred to Arbitration Arbitration is not allowed in some cases. Arbitra- tion is not permitted in matters of public order, personal rights, ie, matters that must be resolved
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