Arbitration in Turkey and law firms in Turkey
Turkey's status among "world's most growing economies" brought along the need to modernize the law system. For drawing the foreign investors' attraction, making arbitration in Turkey friendly jurisdiction was an important step.
Turkey has made various reforms such as being party to multinational treaties (e.g. "New York Convention") and drafting the Turkish International Arbitration Law, dated 2001, in accordance with "Uncitral Model Law on International Commercial Arbitration" to improve its arbitration system.
Foreign parties who are unfamiliar with Turkish law may prefer arbitration which is known to be a faster and more effective alternative dispute resolution mechanism. As lawsuits are being seen as paper wars between the lawyers and a long and drawn out process in Turkey; when compared to litigation before ordinary courts, arbitration presents a speedier way of resolution. Thus, on the long term, arbitration in Turkey will appear to be cheaper than the local court procedures. Indeed, arbitration lawyers in Turkey would be more effective and cost efficient in defending a case within a few months before an arbitral tribunal, instead of a long trial before courts.
Furthermore parties are free to choose the members of the tribunal or the arbitrator or may refer to the rules of an Arbitration Institute. They may also decide the language, place or the law that will be applicable to the arbitration. Another undesirable fact in litigation in Turkey, before Turkish courts, is that the judges may not have the sufficient knowledge or experience on the subject matter. Foreign parties shall prefer arbitration for neutrality and access to particular expertise. Lawyers in Turkey are also generally non qualified in international matters. Law firms in Turkey are to prepare themselves to specialization in arbitration procedures.
