ISTANBUL Chamber of Commerce has been providing arbitration services since 1979. In 2014, the Arbitration Bureau was reconstructed and Istanbul Chamber of Commerce Arbitration and Mediation Center (ITOTAM) was established. ITOTAM is an independent and impartial arbitration centre that helps parties in Türkiye and abroad resolve their disputes. Membership is not required to benefit from ITOTAM’s arbitration services.

The arbitration and mediation services provided by ITOTAM are carried out by an experienced legal team and are directed by the Secretary General, Secretariat and the Arbitration Court. ITOTAM Arbitration Rules entered into force in 9 April 2015. UNCITRAL 2010 Arbitration Rules, ICC Arbitration Rules, and other modern arbitration rules were considered when drafting ITOTAM rules. ITOTAM revised its rules in 2021 based on the latest developments in international arbitration, and the updated regulations became effective as the ‘2021 Arbitration Rules.’ ITOTAM’s Arbitration Court and ITOTAM Secretariat are empowered to implement these rules. ITOTAM’s final arbitral awards are binding and enforceable locally and globally.

RESOLVING THE DISPUTES THROUGH MEDIATION

Through ITOTAM Mediation and Med-Arb (Mediation-Arbitration) Rules, the parties can decide to resolve their disputes in a fast, affordable and amicable manner.

ITOTAM provides both voluntary and mandatory mediation services. The parties can sign the mediation agreement when the conflict arises, before or during the litigation. The parties can initiate the mediation process by filing an application form and making the required payment to ITOTAM, even if there are no prior agreements.

In cases where the mediation process fails to reach an agreement, the parties may resort to ITOTAM arbitration in order to resolve their disputes.

ARBITRATION AT ITOTAM

ITOTAM’s services are available for all business disputes regardless of the parties’ nationality, the place of arbitration or the applicable law. The parties are entitled to nominate their arbitrators, the applicable law, arbitration language and place of arbitration. If the language of the arbitration is chosen as English or another language, all arbitration proceedings shall be executed in such language. The parties are entitled to nominate the arbitrators. However, when the parties fail to nominate an arbitrator, ITOTAM Arbitration Court shall appoint an arbitrator. The parties can choose the applicable law (Turkish law or another country’s  law to be agreed upon) in their arbitration agreements. The number of arbitrators (sole arbitrator or three arbitrators) can be determined by the parties in the arbitration agreement. If the number of the arbitrators is not agreed upon or when the parties fail to agree on the number, the ITOTAM Arbitration Court shall decide on the number of arbitrators taking into consideration the nature and the complexity of the dispute. ITOTAM does not have an official list of arbitrators, but the Secretariat can provide the pool of arbitrators with the parties where requested. Parties can nominate arbitrators who are experienced on the dispute matter and ensure more legally accurate awards.

AFFORDABLE COSTS

ITOTAM offers impartial, independent, transparent arbitration services that follow the global standards. With its affordable arbitrator’s fees and administrative costs, ITOTAM is Türkiye’s one of the most affordable arbitration centres. Foreign arbitration centers, whose fees are often in foreign currencies, makes ITOTAM a cost-effective option. The Cost Tariff and the Calculator are accessible on ITOTAM’s website. (www.itotam.com)

In cases where the agreement contains a provision referring a dispute to ITOTAM Arbitration, the foreign investor can directly file a Request for Arbitration before ITOTAM Secretariat. Upon the payment of the filing fee, the Request for Arbitration shall be registered to ITOTAM’s digital system with a file number, and the proceedings commence.. At the end of the arbitration process, the arbitralaward rendered by the sole arbitrator/arbitral tribunal is binding and enforceable both in Türkiye and abroad.

CONFIDENTIALITY

Arbitration is considered as a reliable method in dispute settlement, particularly within the scope of corporate arbitration rules. A professional team in an arbitration centre has a critical role in the smooth execution of the process. The arbitrators must submit a Statement of Independence, Impartiality and Availability to the Secretariat before receiving the case file. When such commitments are violated, the parties may challenge the arbitrators and Arbitration Court shall decide on the challenge the arbitrators. The confidentiality clause in arbitration agreement maintains the confidentiality of the resolution process and the arbitrator’s final award. Arbitration proceedings enable the preservation of sensitive business information compared to the public proceedings in state courts.

Such confidentiality is a crucial advantage of the arbitration process for business people or businesses with reputational risk or confidential business information.

FASTER RESOLUTION

Arbitration proceedings are faster than state court proceedings. The process in the state courts may result in six years up to nine years as the process takes 2 years each in the court of first instance, second tier court and the Court of Cassation. However, as per ITOTAM Rules, the arbitral tribunal shall render its final award within one year of the date on which the minutes of its first meeting are kept. This duration can be extended upon the parties’ agreement or the Arbitration Court’sdecision. In complex arbitration cases, pursuant to ITOTAM’s data, the average award rendering time is 1.5 years. ITOTAM’s Expedited Arbitration Rules stipulates that disputes that do not exceed 2.000.000 TL shall be resolved in 3 months. The shorter arbitration processes reduce legal costs. The only recourse against arbitral awards is filing a Set Aside Lawsuit (Annulment) subject to the limited procedural grounds prescribed under the Turkish Arbitration Law, without readdressing the merit of the dispute.

Submitting a request for arbitration

To initiate an arbitration process, a ‘Request for Arbitration’ has to be submitted to ITOTAM’s Secretariat, accompanied by the receipt of the filing fee, either electronically or physically to ITOTAM. The arbitral proceedings are deemed to have commenced on the day of the payment of the filing fee. Once the Request for Arbitration is received by ITOTAM, the Secretariat shall circulate it to relevant parties. ITOTAM Secretariat will inform parties on the procedural steps. The parties are always welcomed to contact ITOTAM for any questions regarding the steps of the proceedings.

International organizations

IFCAI membership: ITOTAM is a member of the International Federation of Commercial Arbitration Institutions (IFCAI)

Collaborations: ITOTAM has been signing cooperation agreements with arbitration centres across the globe. Within the scope of such cooperation, bilateral agreements encourage  parties to include customized arbitration clauses in their contracts and aim to resolve the disputes expeditiously and efficiently. ITOTAM’s international activities can be reached via: www.itotam.com

Participation in UNCITRAL workgroups: As part of the Turkish delegation, ITOTAM participates in United Nations Commission on International Trade Law (UNCITRAL) Workgroup II (Dispute Settlement) and Workgroup III (Investor-State Dispute Settlement Reform) meetings.

Participation in events: ITOTAM participates in international arbitration events across the globe and follows international practice closely. ITOTAM participates in global arbitration events organized by leading Arbitral Institutions, such as International Bar Association (IBA), International Chamber of Commerce (ICC) Arbitration Days, Global Arbitration Review (GAR) Live, Istanbul Arbitration Week (ISTAW), Dubai Arbitration Week (DAW) etc. as a supporting organization or sponsor.

ITOTAM cooperates with Jus Mundi, one of the most extensive digital international legal and arbitration databases. This cooperation enables arbitral awards, procedural orders and Court Principle resolutions publicly available. Besides, ITOTAM has a subscription to the Kluwer Law Arbitration database. This database platform extensively uses numerous sources and documents regarding arbitration and professional matters.