SETTLEMENT OF INTERNATIONAL DISPUTE

1. SETTLEMENT OF INTERNATIONAL DISPUTE Dr. Özlem Döğerlioğlu IŞIKSUNGUR Yaşar University Faculty of Economics andAdministrative Science International Trade Law – Lecture Notes

2. INTRODUCTION • Disputes concerning the contract • Litigation • through the courts of a country • Either one of the parties belong to OR • The courts of neutral, third country • Arbitration • Private process seperate from national courts • Arbitrator: the persons judging an arbitration process • The number of the arbitrator is decided by the parties • The arbitrators are selected and appointed by the parties

3. LITIGATION-ARBITRATION • Process • Initiation of proceeding • Formal and flexible • Selection of Arbitrators • Qualifications • Choice of venue • Appeal • Delay

5. KINDS OF ARBITRATION It should be decided at the time of entering into arbitration agreement • Ad hoc Arbitration • Institutional Arbitration • Fast Track Arbitration

6. KINDS OF ARBITRATION • Ad hoc Arbitration • The rules and procedures are decided by the parties • It is necessary that the parties prescribe the rules of procedure for the conduct of the arbitration proceeding • Takes place in accordance with the rules of procedure prescribed by the parties in the arbitration agreement • Fail to prescribe the procedure, the procedure has to be decided by the arbitral tribunal ADVANTAGES: Flexible, being entirely depended on the wishes of the parties to dispute DISADVANTAGES: If any party adopts negative approach to the arbitration, the whole procedure can cause a considerable delay

7. KINDS OF ARBITRATION • Institutional Arbitration • The parties use the rules and procedures of an existing international commercial arbitration institution Disadvantage: High Cost the rules of arbitration tend to be less flexible • Fast Track Arbitration : Imposes time restrictions on both the parties and arbitrators. If a party fails to adhere to the time limits, he looses the right to present his case

8. THE MOST IMPORTANT INTERNATIONAL ARBITRATION INSTITUTIONS • Permanent Court of Arbitration (PCA) • United Nations Commission on International Trade Law (UNCITRAL) • International Centre for Settlement of Investment Disputes (ICSID) • The International Chamber of Commerce( ICC) • National Institutions • Specialized Arbitration Institutions • Arbitration and Mediation Centre (WIPO) • Centre for Effective Dispute Resolution

9. Importance of Arbitration in Commercial Disputes • -International Arbitration: • If the parties involved are from different countries • If the venue or rules of the arbitration is another country than the parties • If the place of the commercial relation is performed in another country than the country of the parties • If the parties has expressly agreed so

10. ARBITRATION AGREEMENT • Validity of an arbitration agreement: • Has to look into the requirements of the domestic law of the respective parties

11. ARBITRATION AGREEMENT • For an arbitration to take place there must be an arbitration agreement between the parties: • Arbitration clause in a contract between parties. “ Dispute resolution Clause” or “Settlement of Dispute Clause” • Seperate Arbitration Agreement

12. ESSENTIAL CONTENTS OF AN ARBITRATION AGREEMENT • A Declaration to refer disputes or differences to arbitration • Number of arbitrators • Method of appointment of arbitrators • Method of appointment of Presiding Arbitrator • Qualifications of the Arbitrators • Venue of arbitration • Language of arbitration