Mediation and Arbitration Process: Dispute Resolution Methods...

The mediation and arbitration process provides alternative dispute resolution methods to traditional court litigation. The Law on Mediation in Civil Disputes No. 6325 and the arbitration provisions of the Code of Civil Procedure No. 6100 regulate these methods in Turkey.

Summary and Key Information

Mediation and Arbitration Process: Dispute Resolution Methods - Essential updates for 2025: This guide explains the legal processes, rights, and practical steps.

Introduction: The Shift to ADR

In the complexity of modern commercial life, state courts can be slow and rigid. Arbitration and Mediation offer faster, flexible, and expert-driven alternatives.

The Mediation Process in Turkey

Mediation starts when one party applies to a mediator (voluntary) or to the Mediation Bureau (mandatory for certain cases).

1. Application: Made to mediation bureaus located in courthouses or directly to a listed mediator.
2. Assignment: A mediator is assigned from the roster (for mandatory mediation) or chosen by parties.
3. Invitation: The mediator invites parties to the first meeting.
4. Meetings: The process relies on the mediator’s facilitation.
5. Conclusion: The process ends with either an agreement, a disagreement, or termination. An agreement document has strong legal validity.

The “Protocol of Agreement” signed by parties and the mediator can be enforced like a court verdict once an enforceability annotation is obtained from the court (or directly in some commercial cases involving Attorneys).

The Arbitration Process in Turkey

Arbitration applies when there is an arbitration agreement between parties.

1. Arbitration Agreement: Must be in writing.
2. Commencement: Filing a request for arbitration (notice of arbitration).
3. Constitution of Tribunals: Selection of arbitrators (party-appointed or institution-appointed).
4. Procedure: Submission of statements of claim and defense, evidence, and hearings.
5. Award: The tribunal renders a final and binding award.

Differences in Cost and Speed

• Mediation: Low to medium cost, very fast (weeks).
• Arbitration: Costs can be higher (arbitrator fees, institution fees) but often faster than complex court litigation; offers expertise.
• Courts: Low initial filing fees but variable total costs (Attorney fees over years) and generally slower.

International Aspects

Turkey is a party to the 1958 New York Convention, meaning foreign arbitral awards are recognized and enforceable in Turkey, and Turkish awards are enforceable abroad. Institutions like ISTAC (Istanbul Arbitration Centre) provide modern, efficient rules for international and domestic arbitration.

Future Trends

Digitalization (ODR - Online Dispute Resolution) is rising. Turkey has implemented systems allowing mediation meetings via teleconference, integrating technology into justice.

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