Enforcement of foreign arbitral awards pose several challenges for legal practitioners including arbitration lawyers across the world. This article will provide a detailed examination of procedures for the enforcement of arbitral awards in Turkey.
It is noteworthy that international arbitration centers work in an increasingly interconnected and interdependent world. International arbitration centers are of paramount importance in the promotion of cross-border arbitration. Legal practitioners including arbitration lawyers and consultants should be very familiar with domestic and international rules and standards.
What are the 4 types of Dispute Resolution?
Generally speaking, conflict resolution solutions range from informal and formal legal procedures. Nonetheless, there is a global acceptance that there are four basic forms of conflict resolution:
Undoubtedly, negotiation is regarded as the least formal form of dispute resolution. Parties come together and eradicate their dispute by avoiding further expenses of a lawsuit.
A neutral third party assumes responsibility to help disputants to reach a consensus on their own.
For a useful observation about the mechanism of the United Nations Convention on International Settlement Agreements Resulting from Mediation, our article on A Brief Analysis of the Singapore Convention is available online here.
Individuals or companies are free to choose the best dispute settlement process, as summarized above. It is also critical to recognize the significance of arbitration across the globe.
For more information, take a look at our article on Arbitration Process
Of course parties are also free to choose a legal action for their disputes. Judicial bodies have a central role in finalizing every dispute concerned.
For our work and all legal services on the matter of dispute resolution, please click our “Practice Areas”, titled, Dispute Resolution and Litigation.
What are arbitration awards?
The word “arbitral award” implies a decision by arbitrator(s), arbitral tribunal or an international arbitration center authorized by parties in advance for dispute settlement based on a final and binding decision.
What are the advantages of arbitration?
It is critical to mention useful aspects of the informal conflict resolution process including arbitration. As underlined above, arbitration offers an efficient legal process before going to court. It is, therefore, faster than litigation. Particularly international arbitration centers are of utmost importance in eliminating disputes between people and companies. An in-depth dispute resolution consultation service can be very helpful for the facilitation of conflict resolution through arbitration.
Can foreign arbitration awards be enforced in Turkey?
According to globally recognized rules, a private law issue containing any foreign element must be considered within the ambit of private international law. Accordingly the Act on Private International and Procedural Law (Numbered 5718) is applicable to international arbitration awards in Turkey. Under Article 63, the recognition of the decisions of foreign arbitrators are also subject to the provisions related to their enforcement.
How to enforce a foreign court decision?
In accordance with Article 51, enforcement and recognition of foreign judicial decisions and arbitral awards depends mainly on the judgment of Turkish judicial authorities.
From the procedural aspects, firstly, the Courts of First Instance (Asliye Hukuk Mahkemesi) shall have jurisdiction over enforcement decisions.
Secondly, the decision must be related to a civil lawsuit.
Thirdly, the decision must be finalized.
What are the legal requirements of the decision for the recognition of a foreign judicial decision?
There are core legal requirements for an enforcement of foreign judicial decisions pursuant to Article 54.The competent court is granted a domestic enforcement order in merit under the conditions, among others,
-The existence of a treaty based on the principle of reciprocity between the Republic of Turkey and the country in which the judgment was issued or of a statutory provision or de facto procedure that enables judgments issued by Turkish courts to be domestically enforced in that country,
-The subject matter does not fall within the ambit of the exclusive jurisdiction of the Turkish courts,
-The judgment does not breach public order,
-The judgment should have not been delivered in the absence of relevant party,
How do you enforce foreign arbitral awards in Turkey?
In accordance with Article 60, recognition and enforcement foreign arbitral awards depends mainly on the judgment of Turkish judicial authorities. The arbitral award concerned should be final.
Where to file foreign arbitration awards execution in Turkey?
From the procedural aspects, firstly, the Courts of First Instance (Asliye Hukuk Mahkemeleri) shall have jurisdiction over enforcement decisions. In terms of merits of the case, the First Instance Court will review among others, whether,
arbitration agreement was made or no arbitration clause was placed in the main contract,
the arbitral award is contrary to public morality or public order,
the dispute cannot be settled through arbitration under Turkish legal framework,
the parties was not duly represented before the arbitrators,
the parties duly participated in the selection of arbitrators and executed their procedural rights…
In the final analysis, this article mainly focuses on the recognition and enforcement of foreign arbitral awards in Turkey. As clearly seen, the question of how to enforce foreign arbitration awards requires an in-depth analysis of Turkish regulations including the Act Numbered 5718. The Courts of First Instance is the first address as competent judicial bodies to file an enforcement petition.