ERDEM-NEWSLETTER-2018-metin

146 NEWSLETTER 2018 Disadvantages in the Allocation of Costs Another possibility of sanctions regulated under the IBARules in the event of failure to comply with document production orders is that these failures may be taken into consideration by the arbitral tribunal in the assignment of costs of the arbitration (Art. 9/7). Accordingly, the arbitral tribunal may decide that the non-complying party should bear the cost of document production, in full or in part. On the other hand, as the costs of document production pro- ceedings are rather limited in comparison with the value in dispute, the legal scholars argue that the allocation of costs is not effective in influencing the parties’ conduct 9 . However, these costs could be quite high, especially when taking into consideration that the failure to submit documents causes the parties and their counsel to expend additional hours, due to the uncooperativeness of the party who fails to produce the requested documents. Conclusion Failure to comply with the arbitral tribunal’s orders to produce documents may not only hinder an effective arbitration, but may also cause difficulties for the parties to meet their burden of proof. Within this context, although it is rarely used, possible adverse inferences seem to be the most important sanction against the party unwilling to comply with document production orders. An allocation of cost to the disadvantage of the party not respecting the production document orders may also be effective, and it is more often used by arbitral tribu- nals. It should also be noted that the lack of cooperation by the parties in the production of the ordered documents would leave a negative impression on the arbitral tribunal, which may reduce the chances of success of the non-complying party in the arbitration proceedings. 9 Marghitola , p. 180.