Turkish Construction Arbitration: An International Perpective

Yayınevi: Adalet Yayınları
Yazar: Erman EROĞLU
ISBN: 9786258038118
72,00 TL 80,00 TL

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Kitap Künyesi
Yazar Erman EROĞLU
Baskı Tarihi 2021/11
Baskı Sayısı 1
Boyut 16x24 cm (Standart Kitap Boyu)
Cilt Karton kapak
Sayfa Sayısı 200

Turkish Construction Arbitration: An International Perpective

Turkish construction law has evolved parallel to the developments in the international construction arbitration and overcome certain deficiencies over the years. Recent years have seen the rise of new opportunities, markets, and challenges for construction projects in Turkey. This book is aimed at addressing the significant developments in the practice of dispute resolution on major construction contracts of Turkey.

Specific valuable features of this book contain the following:

-guidance on the drafting of dispute resolution provisions designed to minimize disputes and facilitate their swift resolution;

-recommendations for the application of the 1958 New York Convention;

-drafting arbitration clauses for Turkish-centric agreements;

-characterization of international arbitration by Turkish courts;

-details of the key features of a construction contract, common standard forms and procurement structures.

Any practitioner or academic interested in the field of Turkish construction arbitration and the enforcement of foreign awards will welcome this very useful and informative work.

TABLE OF CONTENTS


ACKNOWLEDGEMENT .............................................................................................. 7

TABLE OF CONTENTS................................................................................................ 9

APPENDIX ............................................................................................................... 15

ABBREVIATIONS ..................................................................................................... 17


CHAPTER I

INTRODUCTION


I. Introduction..................................................................................................... 19

A. Causes and Consequences........................................................................ 24

B. Potential Legal and Policy Issues .............................................................. 26

II. Background Studies......................................................................................... 28


CHAPTER II

ROOTS OF ARBITRATION


I. Introduction..................................................................................................... 31

II. Arbitration in the Roman Empire .................................................................... 35

A. Introduction.............................................................................................. 35

B. The Scope of Arbitration........................................................................... 36

C. Arbitrators ................................................................................................ 38

D. Arbitrability............................................................................................... 40

E. The Procedure of Arbitration.................................................................... 40


CHAPTER III


THE EVOLUTION OF ARBITRATION IN TURKEY


I. Introduction..................................................................................................... 43

A. The Historical Development of Turkish Arbitral Rules.............................. 45

1. The Essential Arbitral Rules, Codes, and Acts of the Turkish

Legal Realm........................................................................................ 46


T 10 able of Contents

a. Turkish Code of Civil Procedure (Act. No. 1086)......................... 46

b. The Turkish International Arbitration Code (Act No. 4686)........ 49

c. Turkish Code of Civil Procedure (Act No. 6110).......................... 52

d. The Law Concerning Arbitration for Concession Contracts

(Act No. 4501) ............................................................................. 54

e. The Turkish International Private and Procedural Code

(Act No. 5718) ............................................................................. 55

f. Istanbul Arbitration Centre Code (Act No. 6570)........................ 55

2. Multilateral Treaties of Turkey .......................................................... 56

a. The New York Convention on Recognition and

Enforcement of Foreign Awards of 10 June 1958 (The New York

Convention) .................................................................................. 57

b. The European Convention on International Arbitration of

21 April 1961............................................................................... 57

c. The International Convention on the Settlement of

Investment Disputes between States and Nationals of the

Other States of 18 March 1965 (ICSID) ....................................... 58


CHAPTER IV

ARBITRATION IN TURKEY


I. Introduction .................................................................................................... 59

II. The Scope of the TIAC and Foreign Element................................................... 61

A. Foreign Element ....................................................................................... 61

1. Parties’ Domiciles, Habitual Residences, or Business Places............. 63

2. The Place of Arbitration..................................................................... 63

3. The Place of Performance or the Closest Connection to the

Disputes ............................................................................................. 64

4. Foreign Capital or Foreign Loan......................................................... 64

5. The Movement of Capital or Goods .................................................. 65

B. Arbitrability under the TIAC ..................................................................... 65

III. Arbitration Agreement.................................................................................... 67

A. The General Concept of Arbitration Agreement in Turkey ...................... 67

B. Arbitration Agreement Essentials ............................................................ 70

IV. Arbitrators and Selection Procedures ............................................................. 72


Table of Contents 11

V. Rules of Procedure Applicable to Arbitration.................................................. 80

A. Procedure Rules in a Nutshell................................................................... 80

B. The Place of Arbitration............................................................................ 82

VI. The Procedure of Arbitration .......................................................................... 83

A. The Language of Arbitration..................................................................... 83

B. Arbitration Petition and Response ........................................................... 84

C. Terms of Reference .................................................................................. 86

D. Hearing ..................................................................................................... 87

E. Parties’ Capacity ....................................................................................... 88

F. Experts in Arbitration and Document Production .................................... 89

G. Applicable Law.......................................................................................... 91

H. Decision Process of Arbitral Tribunals ...................................................... 92

İ. Termination of the Arbitral Process ......................................................... 92

J. Contents of Arbitral Awards and Delivery Process ................................... 94

VII. The Appeal Procedure and Annulment of Arbitral Awards............................. 97

A. Vacation.................................................................................................... 98

B. Grounds for the Vacation ....................................................................... 100

1. The Ex Officio Reasons for Vacation to be Taken into

Consideration by the Court.............................................................. 100

a. Arbitrability ............................................................................... 100

b. Public Policy .............................................................................. 101

2. Parties’ Application for Vacation ..................................................... 102

a. Lack of Legal Capacity and Invalid Arbitration Agreement ....... 102

b. Failure of the Selection of Arbitrators....................................... 103

c. The Time Period for Rendering the Award................................ 104

d. Exceeding the Scope of the Power of Arbitrators ..................... 105

e. Procedural Irregularities............................................................ 107

f. The Violation of the Equality Principle...................................... 108

VIII.The Recognition and Enforcement of Arbitral Awards.................................. 109

A. The Recognition of Arbitral Awards........................................................ 111

B. The Enforcement of Arbitral Awards...................................................... 112

1. The Recognition and Enforcement under the New York

Convention....................................................................................... 114


T 12 able of Contents

a. Incapacity and Invalidity ........................................................... 115

b. Violation of Due Process ........................................................... 116

c. Arbitral Awards beyond the Scope of Submission to

Arbitration................................................................................. 117

d. Irregularities of Composition of the Arbitral Tribunal or

Arbitration................................................................................. 118

e. Non-binding or Vacated Awards............................................... 119

f. Non-Arbitrability ....................................................................... 119

g. Violation of Public Policy........................................................... 120

2. The Recognition and Enforcement of Arbitral Awards under

the TIPPC.......................................................................................... 121


CHAPTER V


INTERNATIONAL CONSTRUCTION LAW AND

CONSTRUCTION ARBITRATION OF TURKEY


I. Construction Law .......................................................................................... 123

A. International Construction Law.............................................................. 124

1. Introduction..................................................................................... 124

2. Project Delivery Systems ................................................................. 125

a. Design-Bid-Build (DBB) Projects................................................ 126

b. “Design-Build” or “Turnkey” Projects ....................................... 127

c. Integrated Project Delivery (IPD) .............................................. 128

d. Public-Private Partnership (PPP, 3P) Projects ........................... 129

3. International Standard Form Construction Agreement................... 130

a. FIDIC.......................................................................................... 130

b. ICC ............................................................................................. 132

c. ENAA ......................................................................................... 134

d. NEC............................................................................................ 135

e. PPC International ...................................................................... 135

B. Turkish Construction Law ....................................................................... 137

1. Introduction..................................................................................... 137

2. Key Features of Construction Contracts .......................................... 137

a. Domestic Construction Law ...................................................... 137

b. International Construction Law of Turkey ................................ 138


Table of Contents 13


i. Rules and Laws Regarding Turkish Companies

Investing Abroad ................................................................ 138

ii. Rules and Laws Regarding Foreign Companies That

Invest in Turkey .................................................................. 139

II. Construction Arbitration in Turkey................................................................ 140

A. Introduction............................................................................................ 140

B. Agreement.............................................................................................. 141

C. Suitability of Arbitration for Construction Disputes ............................... 142

1. Arbitrability ...................................................................................... 142

2. Public Policy ..................................................................................... 142

3. Enforcement .................................................................................... 143


CHAPTER VI


CHALLENGES IN CONSTRUCTION ARBITRATION

AND PROPOSED SOLUTIONS


I. Problems........................................................................................................ 145

A. Introduction............................................................................................ 145

B. Issues Regarding Arbitration Agreement................................................ 147

1. Arbitrability Issues Regarding Construction Arbitration .................. 147

2. Issues Regarding the Form of Arbitration Agreements ................... 148

C. Issues Regarding Arbitral Tribunal and Arbitrators ................................ 150

1. Structure of Arbitral Tribunal........................................................... 151

2. Number of Arbitrators ..................................................................... 152

3. Selection of Arbitrators.................................................................... 152

4. Impartiality and Independence of Arbitrators................................. 153

D. Issues Regarding Courts and Institutions................................................ 155

1. Courts and Jurisdiction..................................................................... 155

2. Institution......................................................................................... 156

E. Issues Regarding Rules............................................................................ 157

1. Multiparty Arbitration...................................................................... 157

2. Time Limit of Arbitration.................................................................. 158

3. Document Production...................................................................... 158

4. Annulment of Arbitral Award........................................................... 159


T 14 able of Contents

5. Subject Matter................................................................................. 159

6. Attorney Fees................................................................................... 159

7. Virtual Hearing................................................................................. 160

II. Proposed Solutions ....................................................................................... 160

A. Revisions and Amendments ................................................................... 160

B. Defining Terms ....................................................................................... 161

C. Separate Construction Arbitration Rules................................................ 162

D. Specialized Courts .................................................................................. 163

1. French Approach ............................................................................. 163

2. Swiss Approach................................................................................ 164

3. American Approach ......................................................................... 164

E. Construction Arbitration Guidelines....................................................... 165

III. Turkey’s Policy Regarding Construction Arbitration ..................................... 166

A. Rules ....................................................................................................... 166

B. Courts ..................................................................................................... 167

C. ISTAC....................................................................................................... 169

CHAPTER VII CONCLUSION .............................................................................171

BIBLIOGRAPHY ..............................................................................................179

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