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Istanbul Arbitration Center
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Att. Leyla Orak Celikboya
Arbitration Centers
Globalization, cross-border transactions and transnational disputes
increase the need for a reliable dispute resolution mechanism, which
inevitably results in emphasis on international arbitration. Despite the
costs, corporations are inclined to prefer arbitration over litigation
before courts, recognizing it as better suited to meet their needs
1
.
Although
ad hoc
arbitration remains a valid and effective choice,
agreements usually include dispute resolution clauses that refer dis-
putes to arbitration under well known arbitration institutions. While the
International Chamber of Commerce (“ICC”) remains the most pre-
ferred institution, followed by the World Intellectual Property
Organization (“WIPO”) and the American Arbitration Association
(“AAA”), other arbitration institutions, such as the London Court of
International Arbitration (“LCIA”) and Singapore International
Arbitration Center give rise to new arbitration centers
2
.
Factors such as costs, distance and logistics, expertise in a field or
competence in national laws favor choosing various arbitration institu-
tions. For instance, the similarity of Turkish Law with Swiss Law is
one of the reasons why Switzerland is chosen as the place of arbitra-
tion by Turkish parties, and the “Swiss Rules” are chosen as applicable
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NEWSLETTER 2014
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Article of July 2014
1
See International Arbitration Survey of PriceWaterhouseCoopers, Queen Mary University
School of International Arbitration for the year 2013
http://www.pwc.com/gx/en/arbitration-dis-pute-resolution/assets/pwc-international-arbitration-study.pdf (accessed on July 30, 2014).
2
For the breakdown of choice of selected arbitration institutions see the WIPO Center
International Survey on Dispute Resolution in Technology Transactions for the year 2012 on
http://www.wipo.int/export/sites/www/amc/en/docs/surveyresults.pdf(accessed on July 30,
2014).