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Combining two ADR methods, the MedArb model provides parties with an opportunity of settling a dispute through mediation in the Republic of Turkey. Alternatively, they can also try & settle disputes by way of arbitration in the Republic of Turkey. 

What makes Med-Arb really convenient is that it greatly speeds up & simplifies the process of settling a commercial dispute in the Republic of Turkey, making it possible for parties to resolve a dispute in the Republic of Turkey without having to resort to litigation.

Under MedArb, an individual playing the role of a mediator can also act as an arbitrator in the same dispute, providing parties have explicitly agreed to it in writing.

Prior to settling their existing disagreements or those of them that are likely to arise before the final settlement of disputes in Turkey, parties may enter into a Med-Arb agreement. Doing so requires them to agree to the Med-Arb process being managed by the ISTAC or that mediation & arbitration will be carried separately & as per the rules of the ISTAC.

Before filing an application for resolution of a commercial dispute in a Turkish court, parties are required to try & settle a dispute by way of mediation in Turkey  Should they choose to resolve a dispute by arbitration, they mustn’t initiate a compulsory mediation process. 

If parties agreed to sign an arbitration agreement in Turkey, they can settle their disputes without having to resort to compulsory mediation. Pursuant to the rules of the ISTAC, parties are at liberty to use mediation prior to initiating arbitration if they wish to settle a dispute by an ADR method in Turkey instead of litigation.

If parties fail to reach a deal through mediation, they can use an ISTAC-developed arbitration solution, which provides them with far more confidentiality, enabling them to spend much less time & money than regular litigation.

By signing the SCM, the Republic of Turkey has made one more step toward rendering mediation a viable alternative to conventional litigation. If after including a Med-Arb clause in their mediation agreement parties decide to use mediation for resolution of disputes in Turkey, they’re guaranteed to resolve them in any country that has signed the SCM.  

Thanks to Med-Arb, parties are now able to settle disputes by way of mediation or compulsory arbitration in Turkey. Even if they can’t reach a deal & are unable to settle disputes by way of mediation in Turkey, the cost of solving a dispute by way of arbitration in the Republic of Turkey for them will be far lower than the cost of regular litigation.

Need advice on arbitration regulation in Turkey? Why not reach out to IQ Decision UK?