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İstanbul Arbitration Center Fast Track Arbitration Rules Overview

21.4.2017

 

 

 

 

 

 

 

İSTANBUL ARBITRATION CENTER

FAST TRACK ARBITRATION RULES

 

Att. Sami Saygın YAZICIOĞLU

 

1. FIELD OF APPLICATION

 

One of the most important innovations brought by Istanbul Arbitration Center is FAST TRACK ARBITRATION. ( FTA )

 

FTA is a procedure of arbitration, designed to provide a fast, inexpensive and effective trial, especially in cases where the amount of dispute is not very large.

 

Unless otherwise agreed by the parties, the Istanbul Arbitration Centre Fast Track Arbitration Rules (Fast Track Arbitration Rules) shall apply to disputes where, as at the date of commencement of the arbitration, the total sum of the claims, and any counterclaims, do not exceed TR 300.000. The parties may also agree that the Fast Track Arbitration Rules shall apply where the amount in dispute exceeds this sum.

 

Unless otherwise agreed by the parties, in cases where both the claims and any counterclaims exceed the sum of TRY 300.000 in the course of the arbitration proceedings, the Fast Track Arbitration Rules shall still apply.

 

Where the sum of the claims does not exceed TRY 300.000 upon a request of one of the parties, the Board, according to the facts and circumstances, may decide not to apply the Fast Track Arbitration Rules.

 

2. JUDICIAL PROCEDURE AT FAST TRACK ARBITRATION

 

Trial in fast track arbitration begins with the plaintiff filing the case petition and annexes to the secretariat.

 

As it can be seen, in the case of fast track arbitration, the plaintiff directly presents  a statement of claim instead of a request of arbitration.

 

The statement of claim shall include the full names, titles, addresses, telephone and facsimile numbers and email addresses of each of the parties and, if any, of their representatives.

 

The declaration will include a statement of the subject matter and characteristics of the dispute. FTA aims to save time and cost. For this reason, the plaintiff's first petition must make all the disclosures related to the case. All the documents and evidence required for the proceedings of the case constituting the basis of claim shall be submitted together with the first petition. The request will specify the value of the claim - ending dispute. Finally, there will be a copy of the arbitration agreement, as well as comments on the number of arbitrators, the choice of arbitrators, the place of arbitration, the language of arbitration.

 

The defendant shall submit to the Secretariat the reply petition and if any, counterclaims and their attachments within fifteen days of the notification of the claim petition by the Secretariat to him or her. Answer/The reply petition will include; the name, surname, title, address, telephone and fax numbers and e-mail addresses of the parties and if any, their representatives, will be specified. The answer /reply petition will include the nature of the dispute and the facts set forth in the petitioner's claim and the legal explanation/arguments.

 

The answer/reply will include the number of arbitrators and the selection of arbitrators, the place of arbitration, the language of arbitration, and the declarations about which law should be applied. Finally, the defendant shall be entitled to make all kinds of allegations and objections concerning the existence, validity or content of the arbitration agreement.

 

In FTA proceeding, the plaintiff submit petition with? explanations and evidences, and the defendant also responds to any and all questions within 15 days and presents his/her arguments and the defendant also gives a reply within 15 days by offering all kinds of answers and proofs.

 

If the defendant objects to the execution of the proceedings in accordance with the FTA Rules, it must present its objection to the secretariat within five days of the notification of the initiation of the arbitration trial before the selection or appointment of the sole arbitrator. . The Board will decide on this objection. In the event that the defendant does not participate in the arbitration, , or even if the defendant objects to the FTA arbitration proceeding, but does not object within the time period of application of the Fast Track Rules of Arbitration or if he does not submit a Response, the defendant will continue to the proceedings in accordance with these Rules.

 

A) SELECTION AND DETERMINATION OF SOLE ARBITRATOR

 

Unless otherwise agreed by the parties, all disputes subject to the Fast Track Rules of Arbitration shall be resolved by a Sole Arbitrator.

 

Considering the fact that  FTA especially  deemed to be designed for claims that are not large in quantity/amount, the dispute is solved by the Sole Arbitrator will provide a great advantage in terms of costs.

 

Furthermore; from the arbitrator's appointment process to the taking of judicial decisions,

sole arbitrator will provide time saving. Within 15 days of notification of the claimant’s statement of claim by the Secretariat to the respondent, the parties shall choose together a Sole Arbitrator. If the parties fail to agree on the Sole Arbitrator, the Board shall appoint the Sole Arbitrator.

 

B) TRIAL PROCEDURE IN SERIAL ARBITRATION

 

Within fifteen days from the date on which the petition is filled with the complaint/statement of claim, including all of the explanations and evidences, as explained/referred above, the defendant will submit a reply containing all the answers and the counter-evidences. In the meantime, the parties will try to negotiate the selection of the Sole Arbitrator, and if they cannot agree, the Board will choose the Sole Arbitrator.

 

Sole Arbitrator shall prepare a Procedural Timetable by taking the views of the parties within seven days after being selected or appointed. He or she shall inform the parties and the Secretariat, of the decision on whether or not any other petitions will be offered, whether or not the hearing shall be held and any other procedural matters which he or she considers necessary for the execution of the judgment.

 

The Sol Arbitrator will use all methods he/she deems appropriate, to identify the events that are the cause of the case.  The Sole Arbitrator may decide by reviewing the file without hearing, after he / she has received the opinion of the parties. The Sole arbitrator may decide to hold a hearing if deemed necessary. The sole arbitrator may require the parties to submit any information or document that he or she thinks necessary to resolve the dispute.

 

Thus, when the hearing is not necessary, the decision on the file will save time and cost. The Sole Arbitrator shall notify the parties fifteen days before the date of the hearing when he / she decides to hold the hearing. The day of the hearing is determined by taking the opinions of the parties. In the hearing notice; the parties are invited to be present at the day, hour and place where the hearing is to be held. The Sole Arbitrator will have all the authority in the execution of the hearing.

 

 

 

REFERENCES

  • AKINCI, Ziya, Milletlerarası Tahkim, İstanbul, 2016

  • ISTAC ( ISTANBUL ARBITRATION CENTER ) Arbitration And Mediation Rules, İstanbul, 2016

 

 

 

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