You Have Several Options Under Russian Law for Resolving Business Disputes

No matter how careful you are as a businessman, deals can always go wrong and disputes can arise. How you manage these disputes should be established at the contract stage of the deal. By specifying in the contract how conflicts will be resolved, you will save time and money down the road if something goes wrong.

Working with an attorney when drafting contracts will offer additional protections to you and your business. You will have several options when deciding how to resolve disputes.

Your Options for Dispute Resolution

Many business disputes in Russia can be effectively settled out of court if pre-trial procedures are adequately defined in the contract. Options for dispute resolution include:

  • Mediation. Disputing parties may voluntarily enter into a mediation procedure to resolve a conflict, but the outcome of mediation is not legally binding. Even if both parties agree to a solution, there is nothing either side can legally do to hold the other to the agreement if that side does not follow through on its promise. However, the mediation agreement can be referred to a court or arbitration tribunal for approval, which would make it legally binding.
     
  • Arbitrazh court. Despite a perception that Russian courts are not always fair and unbiased, you are often better off filing in a local Russian court for many business disputes, as only they will be able to enforce a ruling against another Russian party. A foreign court may not have jurisdiction over your particular case. It can be difficult to predict the outcome of an arbitrazh court proceeding as the court does not recognize legal precedents, but there are situations where it is still your best bet. You are allowed three appeals in the arbitrazh court and can expect the proceedings to be similar to other European courts. The average length of an arbitrazh trial is three months.
     
  • Arbitration. Arbitration is conducted by one of the best organized and most respected Russian bodies for dispute resolution in international trade, the International Commercial Arbitration Court of the Russian Federation Chamber of Commerce and Industry (ICAC). The ICAC hears disputes in Russian but may hold hearings in other languages, using interpreters, when the parties agree. The ICAC also accepts documents in English without translation. Decisions made by the ICAC are final and there is no appeal process if you are unhappy with the outcome.

Jus Privatum Will Help You Make the Best Decisions for Your Business

Whether you are in the contract negotiation stage and want to provide for dispute resolution, or you are already involved in a conflict with a vendor or lender, the corporate attorneys of Jus Privatum can help you protect your business. Connect with us through the link on this page for more information.

 

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