Representation in arbitration courts
Representation in arbitration courts is necessary if there is an arbitration clause in the contract. We support disputes in the ICAC, the RAC and international arbitration institutions.
Support of disputes in international commercial arbitration
Disputes in the ICAC at the RF CCI often arise due to non-payment, delays and violations of the terms of foreign trade contracts. Such cases require a deep knowledge of the rules of international private and trade law, as well as the practice of arbitration proceedings. The lawyer analyzes the prospects of the dispute, forms a legal position, prepares an evidence base and represents the client's interests at all stages of the arbitration process.
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More about our services
- General information
- Specifics of Representation in Arbitration Courts
- How arbitration proceedings are conducted
- Recognition and Enforcement of an Arbitral Award
Arbitration is an alternative method of resolving civil disputes, in which the parties refer the dispute to a non-governmental body – an arbitration court. Such a court is formed by agreement of the parties and acts on the basis of Federal Law No. 382-FZ "On Arbitration (Arbitral Proceedings) in the Russian Federation".
Unlike state courts, arbitration courts offer a more flexible and confidential dispute resolution procedure. They can be either permanent at arbitration institutions or created by the parties to resolve a specific dispute (ad hoc).
Arbitration proceedings are applied in the following cases:
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Commercial disputes between legal entities, including disputes under supply, lease, contract agreements and other types of civil law obligations.
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International commercial disputes, when parties from different states include an arbitration clause in the contract.
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Corporate disputes related to management and participation in legal entities.
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Disputes between individuals, if they are related to business activities and the parties have entered into an arbitration agreement.
Specifics of Representation in Arbitration Courts
Representation in arbitration proceedings requires a thorough understanding of the specifics of the arbitration process and the relevant legal regulation. Unlike state courts, arbitration courts operate on the basis of an agreement between the parties and are regulated by special regulations.
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Federal Law No 382-FZ dated 29.12.2015 "On Arbitration (Arbitral Proceedings) in the Russian Federation", which establishes the general principles and procedures of arbitration proceedings.
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The Law of the Russian Federation dated 07.07.1993 No 5338-1 "On International Commercial Arbitration", applicable to international commercial disputes.
A representative in the arbitration court acts on behalf of the principal on the basis of a power of attorney. In accordance with the law, a power of attorney must be issued in writing and contain an indication of the specific powers of the representative.
It is important to note that there is no uniform procedure in arbitral proceedings, and the rules may vary depending on the arbitral institution chosen. Therefore, the representative must be familiar with the rules of the particular arbitration court in which the case is being considered.
Arbitration proceedings are distinguished by a number of features:
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Flexibility of the procedure, as the parties can independently determine the rules of the proceedings, including the choice of arbitrators, the place and language of the proceedings.
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Unlike state courts, arbitration proceedings, as a rule, are not public, which ensures the protection of the commercial secrets of the parties.
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Decisions of arbitration courts may be challenged only on a limited list of grounds provided for by law.
How arbitration proceedings are conducted
Initiating Arbitration
The process begins with the filing of a statement of claim with the chosen arbitral institution or the establishment of an ad hoc arbitral tribunal. The claim indicates the requirements, circumstances of the case and provides evidence. The basis for consideration of the dispute is an arbitration agreement between the parties.
Selection of arbitrators
The parties shall independently determine the composition of the arbitration court. Usually, each party appoints one arbitrator, who then jointly elects the presiding arbitrator. In case of disagreement, the appointment may be made by the arbitral institution in accordance with its rules.
Presentation of position and evidence
The parties shall present their positions and evidence in writing. Hearings may be held in person or remotely, depending on the agreement of the parties and the rules of the arbitral institution.
Receipt and execution of the decision
At the end of the proceedings, the arbitral tribunal shall render a decision which shall be binding on the parties. In case of voluntary non-performance, the party in whose favor the decision is made may apply to the competent state court for the issuance of a writ of execution.
Recognition and Enforcement of an Arbitral Award
Arbitral awards, including international arbitral tribunals, shall be recognized and enforced in the territory of the Russian Federation in accordance with the established procedures. The process of recognition and enforcement is regulated by the following regulations:
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Arbitration Procedure Code of the Russian Federation (CAP RF) – Chapter 31;
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Civil Procedure Code of the Russian Federation (CPC RF) – Chapter 45;
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The 1958 New York Convention on the Recognition and Enforcement of Foreign Arbitral Awards, to which Russia is a party.
In order to recognize and enforce an arbitral award, an application must be submitted to the competent court. The following shall be attached to the application:
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Original or certified copy of the arbitral award;
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Original or certified copy of the arbitration agreement;
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A duly certified translation of these documents into Russian.
The court shall consider the application and, in the absence of grounds for refusal, shall issue a writ of execution for the enforcement of the arbitral award.
Grounds for refusal of recognition and enforcement
The court may refuse to recognize and enforce an arbitral award in the following cases:
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The party against whom the judgment was rendered was not properly notified of the proceedings or was unable to present its arguments;
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The award concerns a dispute not covered by the arbitration agreement or goes beyond it;
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The composition of the arbitral tribunal or the procedure of the proceedings did not comply with the agreement of the parties or the applicable law;
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The decision has not yet become binding on the parties or has been canceled by the competent authority;
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The recognition and enforcement of the judgment are contrary to the public policy of the Russian Federation.
Successful cases
Examples of legal solutions tailored to the specifics of the request, industry and jurisdiction.
International dispute in the ICAC at the Chamber of Commerce and Industry of the Russian Federation
Situation
A European manufacturing company could not receive payment for the equipment supplied in the amount of more than 4 million euros.
Our solution
We represented the interests of a foreign client in the International Commercial Arbitration Court (ICAC). We prepared a legal position, participated in meetings, organized translation and examinations.
Result
The claims were partially satisfied: 2.6 million of the principal debt and interest were collected. The decision was voluntarily executed in Russia without applying to government agencies.
Arbitration under the Rules of the Russian Arbitration Center at the INS
Situation
An IT company from Moscow challenged the customer's unilateral refusal from the license agreement and demanded payment of royalties for 8 months.
Our solution
We initiated arbitration at the RIMA at the INS, prepared evidence of the actual use of the software, and secured the appointment of an independent expert.
Result
The court recognized the customer's refusal as unreasonable, awarded the payment of 3.2 million rubles with interest and compensation for arbitration costs.
Representation in absentia in an arbitration court
Situation
A trading company from Kazakhstan needed protection in a dispute over the quality of a batch of goods.
Our solution
We organized ad hoc arbitration under the terms of the contract, agreed on the composition of the arbitrators, participated in hearings without the principal, and presented evidence.
Result
The counterparty's claim was rejected in full. The decision was successfully executed at the place of registration of the plaintiff.
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FAQ
What is the difference between arbitration and a state court?
Is it possible to participate in arbitration proceedings without personal presence?
Is it necessary to specify an arbitration clause in the contract?
What if the other party refuses to participate in the arbitration?
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