NEWSLETTER-2017

168 NEWSLETTER 2017 pared to court litigation 6 . Considering that the proportional fees applied before Turkish courts, which total 6.831% of the disputed amount, may reach substantial amounts for high-value disputes, ISTAC arbitra- tions may be more cost-friendly than litigation before Turkish courts. Repartition of Costs and Fees in Arbitration Proceedings In order to comment on the possible ways to reduce costs in ar- bitration, understanding the repartition of costs and fees is important. Some interesting numbers from the Survey shed light on the under- standing of repartition of costs. According to the Survey, 74% of party costs were spent on ex- ternal legal costs 7 . This percentage concerns the external legal fees (63%) and barrister fees (11%), if applicable. External legal costs are followed by expert costs, with a percentage of 10%. When we take a closer look at the specific tasks, which the exter- nal legal fees are related to, 25% of the fees pertain to the exchange of pleadings phase. Fees concerning hearing-related tasks make up 37% of party costs, namely 12% on hearing preparation, 16% on hearings, and 9% on post-hearing tasks. As per the allocation of common costs, 60% of these costs pertain to arbitral fees. The other common costs are arbitral expenses, as well as costs pertaining to hearing venue and transcripts. It is also interesting to note that claimants spend 12% more than respondents in arbitration proceedings 8 . Reducing Costs in Arbitration The possibility to reduce costs in arbitration depends on various factors, such as the arbitrators, the parties, and how willing the parties are to resolve the dispute, as well as the particularities of the dispute at 6 Introductory explanations on ISTAC official website, available at: https://istac. org.tr/en/dispute-resolution/arbitration/. 7 Survey, p.10. 8 Survey, p.13.