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4. Results: Answers
International Arbitration
10.
Costs
10.1
How will the tribunal approach the issue of costs?
Turkey

Answer ... The issue of costs is regulated under both the Turkish International Arbitration Code (TIAC) and the Turkish Civil Procedure Code (TCPC). A distinction is drawn between the costs of proceedings and fees of the arbitrators in the TCPC; by contrast, the TIAC combines the fees of arbitrators, the costs of proceedings, the advance deposit and the payment of costs in a single article. Both laws are in line with each other.

The TCPC provides as follows:

Article 441 – (1) Costs of proceedings consist of,

a) the fees of arbitrators and the arbitrators’ secretariat identified by the arbitrators,

b) travel costs of the arbitrators and other expenses they make,

c) the fees paid to experts appointed by arbitrators or arbitral tribunals and other persons whose help was obtained and the expenses of on-site discoveries,

ç) travel expenses of witnesses to the extent that arbitrator or arbitral tribunal approves and other expenses they make,

d) if any, counsel’s fee that arbitrator or arbitral tribunal estimates as per the minimum attorneys’ fee tariff for the counsel of the prevailing party,

e) proceeding fees taken in the applications made pursuant to this Code,

f) notification fees as per the arbitration proceedings.

For more information about this answer please contact: Turgut Aycan Özcan from Lexist Avukatlik Bürosu
10.2
Are there any restrictions on what the parties can agree in terms of costs in an arbitration seated in your jurisdiction?
Turkey

Answer ... Both the TCPC and the TIAC provide that the arbitrators’ fees are decided with the parties, taking into consideration the value and characteristics of the dispute, and the duration of the arbitration proceedings. Additionally, both laws provide that the parties may agree otherwise.

As it is not specifically prescribed that the parties may agree otherwise in relation to costs other than the arbitrators’ fees, it may be concluded that these are mandatory provisions.

For more information about this answer please contact: Turgut Aycan Özcan from Lexist Avukatlik Bürosu
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Topic
International Arbitration