Originally from Arbitration Law of Turkey: Practice and Procedure

CHAPTER 18

ARBITRATION COST

Turkish International Arbitration Law is based on UNCITRAL Model Law. However, since the Model Law does not have any rule governing the arbitration cost, these rules are taken from UNCITRAL Arbitration rules (Articles 38-41)1

18.1 ARBITRATOR’S FEE

Under Turkish law, the legal relationship between the arbitrators and the parties is deemed to be contractual in nature2 Arbitrators and parties are bound by an arbitral contract, the so-called receptum arbitri. This contractual relationship arises once the arbitrators have accepted their appointment.
The Turkish Supreme Court held that the contract between the parties and arbitrators is a mandate contract3. Thus, the arbitrators have the duty and rights as provided in Article 394 of the Turkish Code of Obligations4

Article 16/A of the Turkish International Arbitration Law governs the arbitrators fee. The parties may determine the fee of the arbitrator. Certainly, the arbitrators do not have to accept the fee determined by the parties. The arbitrators may refuse to accept the assignment.

The agreement on the arbitrator’s fee amongst the parties and arbitrators can be made before or after the arbitration proceeding has started. The parties may determine the fees of the sole arbitrator or arbitral tribunal by referring to internationally established rules or the rules of a particular arbitration institution. When the parties resort to institutional arbitration, the tariff of the institute referred to is to be taken into account.