Drafting an Arbitration Petition

The fast-paced and dynamic nature of commercial life has increased the importance of arbitration , alongside courts, in resolving disputes . Arbitration is a method by which parties resolve their disputes through arbitrators they choose. However, one of the most critical stages for a successful arbitration process is the preparation of the arbitration petition .

An arbitration brief clearly outlines not only the essence of the dispute but also the parties' intentions, claims, and evidence. Therefore, the brief requires legal knowledge, diligence, and a strategic perspective.

This article will detail the process of drafting an arbitration petition, its legal basis, required elements, sample structure, points to consider, and relevant Supreme Court precedents

Arbitration and its Legal Basis

• Articles 407-444 of the Code of Civil Procedure (Law No. 6100): Regulate domestic arbitration.

• Law No. 4686 on International Arbitration: Applies to disputes involving foreign elements.

• New York Convention (1958): Recognition and enforcement of foreign arbitral awards.

Understanding this legal framework is essential when preparing an arbitration petition.

What is an arbitration petition?

An arbitration petition is a formal written request from one of the parties to an arbitrator or arbitration center, seeking resolution of a dispute.

• Claimant: Submits an arbitration application.

• Defendant: Submits a response brief.

• Objections: Issues relating to authority, time limits, and procedure must be stated in the petition.

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Elements that must be included in an arbitration petition

1. Party Information

   • Name, title, address, contact information.

   • If there is a representative, here are the lawyer's details.

2. Arbitration Agreement

   • The arbitration clause included in the contract or a separate arbitration agreement.

   • Authorized arbitration center (ISTAC, ICC, LCIA, etc.).

3. Subject of the Dispute

   • The cause of the dispute (breach of contract, non-payment, delivery problem).

4. Requests

   • Material and moral demands.

   • Interest, compensation, expenses.

5. Evidence

   • Contracts, invoices, correspondence, expert reports.

6. Applicable Law

   • Turkish law, foreign law, or lex mercatoria.

7. Request for Referee Appointment

   • A single referee or panel.

   • The arbitrator candidates proposed by the party.

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Arbitration Petition Preparation Process

1. Preliminary Review

• The validity of the arbitration clause in the contract is examined.

• The scope of the arbitration clause is determined.

2. Strategic Planning

• It is clarified which demands will be made.

• The applicable law and competent authority are evaluated.

3. Writing the Petition

• It is prepared in a format compliant with the Turkish Code of Civil Procedure and related arbitration rules.

• It must be clear, concise, and based on legal principles.

4. Submission of the Petition

• It is submitted to the arbitration center or arbitration panel.

• Necessary fees and expenses are paid.

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Sample Arbitration Petition (Template)

PARTY INFORMATION

• Plaintiff: [Name/Title, Address]

• Defendant: [Name/Title, Address]

ARBITRATION AGREEMENT

• [Relevant clause of the contract or arbitration agreement]

SUBJECT OF THE DISPUTE

• [Summary of the dispute]

LEGAL GROUNDS

• [Turkish Code of Obligations, Commercial Code, CISG, etc.]

REQUESTS

• 1. [Payment requested]

• 2. [Interest rate request]

• 3. [Expenses]

EVIDENCE

• [Contracts, correspondence, invoices]

REFEREE REQUEST

• [Arbitrator proposed by the party]

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Points to Consider When Writing an Arbitration Petition

• Jurisdiction objection: If the arbitration clause is absent or invalid, the courts intervene.

• Time limit: Some arbitration rules impose a time limit on filing a petition.

• Evidence: All documents must be submitted completely.

• Clarity: It is important that the requirements are clear and detailed.

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Arbitration Petition in Supreme Court Case Law

• Supreme Court 11th Civil Chamber, Case No. 2017/4358, Decision No. 2019/2211: If the arbitration clause is valid, the courts do not have jurisdiction.

• Supreme Court 15th Civil Chamber, Case No. 2016/1024, Decision No. 2018/3341: The annulment of arbitration awards is possible only for a limited number of reasons.

• Supreme Court Grand Chamber, Case No. 2015/321 E., Decision No. 2017/1193 K.: Procedural compliance of the arbitration petition is essential for the validity of arbitration awards.

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Differences Between Arbitration Petitions and Court Petitions

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Errors Made in Arbitration Petitions

• The arbitration agreement was not included.

• The applicable law is not specified.

• Incomplete presentation of evidence.

• The requests were written vaguely.

• Applying to the wrong arbitration center.

 

Let's also examine in detail the most important principles in the preparation of an arbitration agreement:

1. Existence and Validity of the Arbitration Agreement

• The arbitration agreement or arbitration clause between the parties must be clearly stated and attached to the petition.

• Otherwise, the arbitration panel may be deemed incompetent.

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2. Clarity and Conciseness

• The subject of the dispute, the claims, and the legal grounds must be clearly and explicitly stated.

• Vague language prevents the referee from making a sound decision.

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3. Presentation of Evidence

• Supporting documents (contract, invoices, correspondence) must be clearly stated and attached to the arbitration petition.

• Evidence should be presented systematically, with references made to it in the petition.

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4. Request Regarding Arbitrator Selection

• The application must state whether the party requests a single arbitrator or a panel of arbitrators, and if applicable, which arbitrator candidate is proposed.

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5. Specifying the Applicable Law

• In arbitration, the parties may choose the applicable law.

• Clearly stating this point in the petition will facilitate the process.

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6. Procedural Compliance

• The petition must be prepared in accordance with the rules of the arbitration center (e.g., ISTAC, ICC, LCIA) or the provisions of the Turkish Code of Civil Procedure.

• Authority, time, and costs should not be overlooked.

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7. Systematic Writing of Requests

• Material and non-material demands should be listed separately.

• Claims for interest, expenses, and legal fees should not be forgotten.

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8. Professionalism and Legal Strategy

• The petition should include not only the allegations but also strong legal arguments.

• A persuasive, systematic, and professional language should be used to convince the arbitration panel.

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Conclusion

The arbitration petition the first and most critical step. A properly prepared, clear petition supported by evidence is vital for protecting the rights of the party.

In Turkey, when preparing petitions for both domestic and international arbitration, the Code of Civil Procedure, Law No. 4686, the New York Convention, and relevant arbitration rules is required.

In conclusion, professionally drafting the arbitration brief is the most important factor determining the outcome of the process for both the plaintiff and the defendant.