Alternative Dispute Resolution

We assist companies in the out-of-court resolution of conflicts — through negotiation, mediation, conciliation, and arbitration. Not every dispute belongs in court, and some proceedings cause more harm than the subject of the dispute is worth.

When the out-of-court route is worthwhile

Three circumstances favor a solution outside of court. First, when the business relationship is to continue: A lawsuit against the only supplier of a component usually ends both the dispute and the supply. Second, when confidentiality matters — court proceedings are public, and competitors are watching. Third, when the dispute is technically or economically complex and the parties want an expert decision instead of a lengthy evidentiary process through multiple instances.

The out-of-court route is not advisable when one party is obviously just trying to buy time, when a precedent is needed, or when a statute of limitations is approaching and only a lawsuit can effectively halt it.

Mediation

In mediation, no one decides for the parties. A neutral third party structures the conversation, uncovers the actual interests behind the legal positions, and helps develop a solution. The process is voluntary, confidential, and can be terminated at any time.

Its strength lies where a court decision cannot help: in shareholder conflicts where the parties must continue to work together, in succession issues in family businesses, and in entrenched contractual relationships. If an agreement is reached, we document it in an enforceable form — otherwise, it remains a statement of intent.

Conciliation and Adjudication

Unlike the mediator, a conciliator makes a proposal. In construction projects, adjudication is also common: A third party makes a preliminary decision on a disputed issue during the ongoing construction period, allowing work to continue. The decision is binding temporarily but can be reviewed by a court later.

This instrument solves a practical problem: Those who must wait for a judgment to know whether an order is to be compensated either do not continue construction or bear the risk alone.

Arbitration

The arbitration process completely replaces the state court. The parties choose the arbitrators, the procedural law, and the location; the process is not public, and the arbitral award is easier to enforce internationally than a judgment, as the New York Convention standardizes recognition.

The price for this is twofold: You bear the costs yourself, and there is no appeal. An arbitral award can only be challenged on a few formal grounds — substantive errors are not included. For German-Turkish contracts, the German Institution of Arbitration, the International Chamber of Commerce, and the Istanbul Arbitration Center are commonly used.

Negotiation as a separate process

Before a third party is involved, direct negotiation takes place — and it is more likely to succeed if it is prepared. This includes a sober assessment of one’s own position: What is the best alternative if no agreement is reached? Those who cannot answer this question negotiate without a benchmark and either accept too little or reject a good offer.

Equally important is the question of who is actually authorized to decide on the opposing side. Negotiations often fail not on content but because no one at the table has the authority to agree. We clarify this in advance and accompany the discussions ourselves where it helps — and refrain from involvement where the participation of attorneys would only harden positions.

The clause decides

All these paths require an agreement, which is almost always created at the conclusion of the contract — not in dispute. A useful clause specifies the institution, the number of arbitrators, the location, the language of the proceedings, and the applicable law. If any of these elements are missing, a dispute arises over the clause itself before anyone addresses the matter at hand.

Tiered clauses are common: first negotiation, then mediation, then arbitration. They are sensible but must set deadlines — otherwise, the preliminary stage becomes an instrument of delay.

What this consultation relates to

We draft dispute resolution clauses as part of contract design and assess in case of conflict which path is appropriate. Where an out-of-court solution fails, we continue the proceedings before the state court or the arbitration tribunal — building on the groundwork that has already been laid.