Insights Dispute Resolution

    The Importance of the Arbitral Seat In International Commercial Arbitration

    The arbitral seat is the legal home of the arbitration.[1] Also referred to as the “place of arbitration,” the seat is the relevant connecting factor determining the lex arbitri.[2] The term must be understood in a legal sense and not in a geographical one,[3] since meetings and hearings can normally be held elsewhere.[4] The choice of the place of arbitration is typically made by the parties, either in the arbitration agreement or when a dispute has arisen. Otherwise, selection will be made by either the arbitral institution[5] or by the arbitral tribunal.[6] Some institutional rules contain provisions for establishing the arbitral seat by default when there is no agreement between the parties.[7]

    Yargıtay, Tahkim Şartı Bulunan Uyuşmazlıklarda İhtiyati Tedbir Kararına İtiraz Halinde Devlet Mahkemelerinin Yetkili Olduğuna Karar Verdi

    Tahkim şartı bulunan uyuşmazlıklarda ihtiyati tedbir kararına karşı yapılan itirazın hangi merci tarafından değerlendirileceği konusunda Bölge Adliye Mahkemesi’nin dairelerinin çelişkili kararları bulunduğunu tespit eden İstanbul Bölge Adliye Mahkemesi Başkanlar Kurulu, çelişkilerin giderilmesi için Yargıtay’a başvurmuştur.

    The 6th Civil Chamber of the Court of Cassation Ruled That The Turkish Courts Were to Review Objections to Interim Injunction Decisions

    The Board of Presidents of the Istanbul Regional Court of Appeals (the“Board”) determined that there was an inconsistency between the judgments rendered by different chambers of the Istanbul Regional Court of Appeals on whether the objection against the interim injunction decision should be heard by the court of first instance that issued the decision or by the foreign arbitration tribunal where the actual dispute is heard.

    Singapore International Commercial Court Released A Model Arbitration Clause

    The Singapore International Commercial Court (“SICC”) has released a model clause to enable the parties to designate the SICC as the competent court for hearing their arbitration-related court cases: “In respect of any court proceedings in Singapore commenced under the International Arbitration Act 1994 in relation to the arbitration, the parties agree; (a) to commence such proceedings before the Singapore International Commercial Court ("the SICC"); and (b) in any event, that such proceedings shall be heard and adjudicated by the SICC.” SICC also stated that this model clause will be a part of the Singapore International Arbitration Centre’s model arbitration clause. As such, the parties will be able to choose a specialist court to rule on their arbitration-related litigation cases.

    “Without Prejudice Save as to Costs” under English Law verses the Process of “Sealed Offers” under ICC’s Assistance

    The possibility of parties settling their dispute by means of amicable settlement can be initiated at any point during the legal proceedings, be it court or arbitration. Indeed, amicable settlement is a commercially sensible and viable route if parties are ever able to see past the acrimony and personal vendetta they may possess against each other after the dispute crystalises. Heated international construction despites, for example, will usually have one side refusing to pay for works carried out on site arguing that works were not carried out to a sufficient level and/or levying delay damages, whilst the other side will be arguing non payment, delay and disruption. For international cases, in some locations it may be particularly challenging to advance the project, and where contractors defeat the odds by carrying out the works notwithstanding these obstacles, any ensuing dispute, especially arising from non payment, fuels the animosity between the parties, hindering any fruitful negotiation process. This is when the parties will be keen to have its ‘day in court’ regardless of the costs at stake.

    Stockholm Chamber of Commerce Arbitration Institute Has Published 2023 Arbitration Rules

    The Stockholm Chamber of Commerce Arbitration Institute ("SCC") has published the 2023 Arbitration Rules ("the 2023 Rules"). Unless otherwise agreed by the parties, the 2023 Rules will apply to arbitration proceedings based on arbitration agreements referring to the SCC which are initiated after 1 January 2023.

    Akıncı Arbitration

    Paris Court of Cassation upheld the investment-treaty award rendered by the Permanent Court of Arbitration, which requires Russia to compensate for the losses incurred by a Ukrainian bank, Oschadbank, as a result of Russia’s annexation of Crimea in 2014. According to the award, the Ukrainian investor is to recover USD 1.1 billion plus interest from Russia.

    International Arbitration Landscape in the U.S.

    After discussing the U.S. – Türkiye market and how to expand in the U.S. in our first blog post, we now proceed to analyze the international arbitration landscape in the U.S. The initial choice for a dispute resolution method is between arbitration and litigation. The consequences of choosing effectively are important. The decision will impact the time and money spent on the resolution of the dispute, the procedural rules governing such dispute, and the enforcement procedures and possibilities of a future decision.

    The U.S. – Türkiye Market

    The United States (“U.S.”) and the Republic of Türkiye (“Türkiye”) have maintained a strong economic relationship for more than a hundred years. Under the current socioeconomic environment, we see huge potential for growth. Overall bilateral trade between the nations has dramatically increased in the last decade and nearly reached $28 billion in 2021, with U.S. exports to Türkiye being approximately $11.9 billion and imports from Türkiye being approximately $15.9 billion.

    Arbitration Quarterly

    As we enter the last quarter of 2022, changes and developments continue to occur in the world of international arbitration. On one hand, jurisprudence on the different aspects of international arbitration is expanding with the decisions of arbitral tribunals and courts. On the other hand, remarkable developments are occurring with regards to investment arbitration especially due to the monumental changes regarding the protection of energy investments.

    New Decision by the Court of Cassation General Assembly to Unify the Conflicting Judgments

    There were conflicting opinions among various chambers of the Court of Cassation as to whether the statement of claim for the actions for the annulment of objections to the execution proceedings should be served to the attorney or the debtor. This conclusion reached in the Decision of the Board of the Unification of Case Law resolved the contradictions. Accordingly, even if the debtor against whom an execution proceeding is initiated objects to the execution proceeding through their attorney, in the action for annulment of the objection to be filed by the creditor, the statement of claim must be served to the principal (the debtor).

    Court Provides Guidance on How to Conclude Actions For Undue Receivables

    A unification of judgments regarding the matter was crucial as the result also affects whether pro-rated or fixed attorney fees should apply. Before the unification decision, the chambers relying on procedural grounds imposed a fixed attorney fee, whereas the chambers relying on substantial grounds imposed a pro-rated attorney fee, which created an unfair practice.