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Turkiye - Country Report - Handbook on Third-Party Funding in International Arbitration- Second Edition

Author(s): 
Simel Sarialioglu
Page Count: 
16 pages
Published: 
November, 2024
Jurisdictions: 
Turkey
Practice Areas: 
Third Parties in Arbitral Proceedings,
Practice & Procedure,
National Legislation,
National Institutions and Rules,
Apportioning of Costs,
Deposit of Costs,
Orders for Security,
Representation and Legal Assistance,
Independence and Impartiality,
Responsibility of Parties,
Confidentiality,
Arbitral Process,
Termination
Tags: 
Third-Party Funding Regulation,
Duty of disclosure,
Conflict of Interest

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Description: 

Originally from Handbook on Third-Party Funding in International Arbitration, Second Edition

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PART I.  THE THIRD-PARTY FUNDING LANDSCAPE

1.  The TPF market in Turkiye

1.1.  Please shortly describe the TPF market in your Jurisdiction.

TPF is not regulated under Turkish courts and Turkish courts have not expressed an opinion on this mechanism. Due to the absence of any TPF-related regulations, there is no obligation to disclose the existence of a TPF agreement and thus, it is challenging to keep a record of TPF activity in Turkiye.

Awareness of TPF is on the rise owing to a growing interest in arbitration in Turkiye. There are few ICSID arbitration cases known to the public where TPF was used by Turkish investors. 

1.2.  Is it dominated by local or international Funder? Which Funders are active? Which cases typically get funded?

There is no publicly available data of TPF use and no official registry or directory of Funders in Turkiye. For this reason, it is not possible to provide any formal information on the identity of funders or the nature of cases typically funded. However, based on the public data referred to in answer to question 1.1. above, it is possible to conclude that TPF is used by Turkish investors in international arbitration.

1.3.  What types of funding exist (e.g., ISDS, Commercial Arbitration, portfolio funding, respondent-side funding etc.)?

The Turkish Code of Civil Procedure (“CCP”) regulates that persons lacking funds to pay partially or fully the costs of the court proceedings may enjoy legal aid provided by the state treasury.    To qualify for legal aid, the claim of such individuals should not clearly lack merit.