Litigation and Alternative Dispute Resolution

Turkish Litigation & ADR Update

Contents:

  • Relationship between Arbitrability and Public Policy in Light of the Decisions of the Court of Cassation
  • Challenging Decisions of the Regional Courts of Appeal
  • Soft Law in International Arbitration

 

Relationship between Arbitrability and Public Policy in Light of the Decisions of the Court of Cassation

The issue of arbitrability defines whether a dispute may be resolved through arbitration by the free will of the parties, instead of through the state courts. The disputes that are held to be arbitrable are set forth under the Code of Civil Procedure numbered 6100 (“CCP”), with regard to domestic arbitration, and in the International Arbitration Act numbered 4686 (“IAA”), with regard to disputes having a foreign element. In this newsletter article, we analyze the relationship between arbitrability and public policy in light of the decisions of the Court of Cassation.

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Challenging Decisions of the Regional Courts of Appeal

By the inauguration of the Regional Courts of Appeal (“RCA”) on July 20th, 2016, a change has been made from the two-tier appellate review system to one that is three-tier. Accordingly, the Courts of First Instance (“CFI”) decisions given prior to July 20th, 2016 will be subject to the appellate articles of the abrogated Civil Procedure Code[1]. To the contrary, the CFI decisions given as of July 20th, 2016 will be subject to the appellate articles that are in effect in the Civil Procedure Code[2] (“CPC”). This article covers the substantial parts of the three-tier appellate system and its diverging parts from the former system.

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Soft Law in International Arbitration

Application of soft law in international arbitration has increasingly become more significant. Mainly due to the party autonomy that is dominant in arbitration states tends to regulate arbitration laws in a limited way. This created a new market for players, besides lawmakers to codify rules. These rules that are drafted by such private players have a substantive, or are of a procedural, nature. One of the most referred to substantive soft law is the UNIDROIT Principles of International Commercial Contracts (“UNIDROIT Principles”). The UNIDROIT Principles will be referred to when an arbitral tribunal is in the phase of resolving the dispute (i.e. when the merits are examined). However, arbitration is a dispute resolution mechanism, and bears a significant amount of procedural matters, as well as soft law that aim to regulate such procedural matters, and which are arbitration specific, will be the main focus of this newsletter article.

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