I. Filling Fees for the Enforcement of Foreign Arbitral Awards
In order for the foreign arbitral awards to be enforced, the party desiring to enforce the award in Turkey shall bring the arbitral award before the court. In lack of special provisions for the amount or calculation method for the enforcement of foreign arbitral awards, such final and binding decisions will be subject to the Law of Fees numbered 492 and dated 2 July 1964.
The conflict arises between whether Article 3 of the Law of Fees imposes a fixed fee or a proportional fee depending on the nature or amount of the foreign arbitral award. Pursuant to Article 3 of the Law of Fees, the writ fee shall be charged in accordance with the nature of the dispute and the same shall apply for the enforcement of foreign arbitral awards. This brings the question of whether a fixed fee or a proportional fee is to be charged by the court for the enforcement. Both sides can be found in the appellate court decisions as well as scholarly writings. Accordingly, please see below for some appellate court decisions on the unclear problematic:
- Court of Appeals, 15th Civil Chamber, E. 2015/3849, K. 2015/4786, 15 October 2015
The dispute before the court was whether the lower court’s decision of rejection of the lawsuit relying on the arbitration clause in the agreement between the parties and the proportional fee charged by the court. The 15th Civil Chamber ruled for the approval of the decision of the lower court while correcting the fee paid and ruled that the amount exceeding the fixed fee and received as the proportional fee shall be returned to the party.
- Court of Appeals, 11th Civil Chamber, E. 2015/3987, K. 2015/10984, 26 October 2015
The dispute before the court was the enforcement of an arbitral award given by the Russian Federation Arbitration Tribunal. The 11th Civil Chamber held that the dispute was rejected by the lower court reasoning that the proportional fee was not deposited. However, in accordance with the precedence of the Court of Appeals, the enforcement cases are subject to a fixed fee. The 11th Civil Chamber ruled the decision of the lower court to be revised.
- Court of Appeals, 15th Civil Chamber, E. 2015/5033, K. 2015/691, 12 February 2015
The dispute before the court was enforcement of a foreign arbitral award. The 15th Civil Chamber held that since the dispute is regarding the collection of receivables between the parties, it is subject to proportional fee. The 15th Civil Chamber, therefore held that a period of time shall be granted in order to complete the fee over the fixed fee paid up to the proportional amount to be calculated.
- Court of Appeals, 15th Civil Chamber, E. 2015/385, K. 2015/1303, 18 March 2015
The dispute before the court was the enforcement of a foreign arbitral award rendered by the arbitral tribunal constituted under the ICC. The 15th Civil Chamber decided for the revision of the lower court’s decision, reasoning that enforcement of foreign arbitral awards is subject to proportional fees and the lower court’s proceedings without the proportional is completely paid is against the law.
- Court of Appeals, 11th Civil Chamber, E. 2015/1353, K. 2015/6701, 11 May 2015
The dispute before the court is the enforcement of the arbitral award rendered by the Sofia Trade Industry Chamber Arbitral Tribunal. The 11th Civil Chamber held that since the enforcement lawsuits do not carry the character of action for performance but they are of declaratory lawsuits, the fee shall not be calculated proportionately but shall be fixed.
- Court of Appeals, 19th Civil Chamber, E. 2015/11188, K. 2015/8132, 2 June 2015
The dispute before the court was the enforcement of the foreign arbitral award rendered by the arbitral tribunal constituted under the International Cotton Union. The lower court subjected the lawsuit to a fixed fee, however, the 19th Civil Chamber reversed the decision reasoning that since the dispute is regarding the collection of receivables between the parties, it is subject to proportional fee.
II. Compulsory Mediation for Labour Disputes
The concept of mediation as an alternative dispute resolution method came into effect in Turkey for civil disputes with the Law on Mediation in Civil Disputes numbered 6325 and dated 7 June 2012. The law came into force a year later following its publication on the Official Gazette, on 22 June 2013. A regulation was also enacted and published on the Official Gazette numbered 28540 and dated 26 January 2013.
The law and the regulation stipulate the principles of mediation and procedure to be followed, however, is not the only piece of legislation discussed. Pieces of mediation can be found in different instruments of legislation as it is in the Draft Law of Labor Courts. In Article 3 of the draft law, mediation is defined as the mandatory dispute resolution method in disputes regarding the workers’ receivables and reemployment lawsuits based on the law, individual employment agreements or labor agreements.
The draft law is yet to come into force in Turkey, and has been sent to state institutions and organizations for their review. For more information on mediation and developments in the process of enactment of legislation, please see the website of Head of Department of Mediation of Legal Affairs General Directorate of the Ministry of Justice.
By Fulya Görer
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