The decision in Iceland Pelagic EHF v CJSC Atlant-Pacific rendered by an appellate court on 19 June 2014 highlighted the lack of unanimity in the approach of the Russian courts to arbitration agreements which refer the dispute either to the incorrect or unclearly-stated arbitral body. The court adopted a very formalistic approach refusing to enforce the arbitration clause on the mere […]
Parties’ use of arbitration for improper purposes has been a topic of growing concern for the Russian business community, courts and state authorities. While an extensive overhaul of the Russian arbitration law to address these concerns is underway, courts employ available procedural mechanisms to combat abuse. This week the Presidium of the Supreme Commercial Court will […]
Russia’s highest commercial court has ruled that arbitral tribunals cannot resolve disputes arising out of government contracts. The court quashed the decisions of lower courts granting enforcement of a domestic arbitral award in a dispute between a government agency and a company. The dispute arose out of a government contract by which the company agreed to […]
The Russian courts have made their first steps on the path of unmasking the “evil” hidden behind the corporate form. Moreover the Russian legislator is not rushing into shaping the corporate veil more thoroughly. Hence, the Russian courts have to decide how and when the foreign legal concept of piercing the corporate veil should be […]
The case deals with the tribunal’s ability to void on the basis of an alleged breach of a public law requirement. A panel of Supreme Commercial Court judges decided this week to refer the matter to the Presidium. The panel relied on a number of grounds justifying setting aside an award applying such rules. In particular, […]
On 8 October 2013 the Supreme Commercial Court recognised a judgment of the High Court of Northern Ireland (the “Judgment”). This is the first time a Russian court has recognised a judgment from this jurisdiction. The Court recognised the Judgment without enforcement because the Judgment does not require monetary recovery. Recognition without enforcement means that the Russian court acknowledged […]
Last Thursday RAA40 held its seminar on exclusion agreements. Two speakers – Anne-Marie Whitesell (of Counsel at Dechert LLP and former Secretary General of the ICC International Court of Arbitration) and one of RAA40’s co-chairs Olesya Petrol –addressed recent developments in the area. By entering into an exclusion agreement, which usually forms part of an arbitration clause, parties waive […]
Earlier this week, the Presidium of the Supreme Commercial Court released the full text of its resolution in Bosch v. Avtosped (a case we covered earlier). Unsurprisingly, the court dismissed Bosch’s claims and referred them to arbitration. However, the Supreme Commercial Court used the case to go over some basic rules that the Russian courts […]
In June 2013, the Federal Commercial Court of the Moscow Circuit rendered a decision allowing the enforcement of an Order for Termination of Arbitral Proceedings issued by a Swiss arbitral tribunal (with B. Berger (chairman), R. Favre Schnyder and V. Heiskanen as arbitrators). The CIS Arbitration Forum has already covered this story. Presently, the appeal to the Supreme Commercial […]
Last Friday the Supreme Commercial Court released a long-awaited review of case law in cross-border disputes (disputes involving a foreign party) (for our earlier report on the draft review see here). While such reviews are not de jure binding, they are as a matter of practice followed by the lower courts and provide reliable guidance to litigants. The […]
Competition and cooperation between legal systems is the opening theme of the plenary session of the International Legal Forum in Saint Petersburg on 15-18 May 2013. In October 2012 the Presidium of the Russian Supreme Commercial Court (“SCC”) issued a resolution dealing with competition between foreign and Russian jurisdictions which is relevant to this session and of interest to international litigation practitioners. […]
For years Russian courts have struggled with the question of whether an obviously disproportionate amount of damages/penalties awarded by an arbitral tribunal may lead to refusal to enforce the award. The prevailing practice has been to reject this proposition since it entails review of the merits of the case. Yet lower instance courts have sometimes […]
The continuing financial instability worldwide has its impact on all areas law, including arbitration. The number of cases where insolvent parties are involved in arbitration or have entered into agreements containing arbitration clauses is rising and has over the past year generated significant jurisprudence of the Russian courts. Notably, the Supreme Commercial Court in a […]
The Supreme Commercial Court has published a draft information letter summarising the practice of the application of the public policy defence in enforcement of foreign arbitral awards and court judgments proceedings (the “Practice Review”). While not technically binding an information letter adopted by the Presidium of the Supreme Commercial Court is usually deferred to by […]
The Presidium of the Russian Supreme Commercial Court has clarified its position on the authority to conclude arbitration agreements. The general counsel of a company branch concluded a contract with an arbitration agreement under a power of attorney authorising him to represent the company at court and in particular to settle disputes or to refer […]
Russia’s highest commercial court has ruled that an optional arbitration clause creates an unfair advantage for one of the parties and hence is contrary to the equality of arms principle. Pursuant to the clause in question both parties were required to submit any disputes among them to arbitration under the ICC rules. However, the seller […]
The Presidium of the Russian Supreme Commercial Court is set to hear the first case in a while directly dealing with the enforcement of a foreign court judgment. The central issue is the following: can a Russian court assess the reasonableness of a foreign court’s decision to exercise jurisdiction in ruling on whether to recognise […]
The Presidium of the Supreme Commercial Court will clarify which of a respondent’s actions may evidence implicit acceptance of an arbitral tribunal’s jurisdiction. The case which will be heard by the court in October focuses on the respondent’s constantly changing position as to the jurisdiction of the arbitral tribunal. Though the respondent eventually contested jurisdiction, […]
As we reported earlier two levels of Russian courts have recognised and enforced a High Court judgment on the basis of reciprocity. Now in a ruling released on Friday a three-judge panel of the Supreme Commercial Court refused the respondent’s petition to have these decisions reconsidered. The panel’s ruling restates the lower court’s position that the […]
The Russian Supreme Commercial Court has held that disputes arising out of investment agreements with Russian authorities are not arbitrable at least for the purposes of domestic arbitration. The court upheld the decisions of the lower courts refusing the enforcement of a domestic arbitral award in a dispute between a private investor and a Russian […]
20th Anniversary ICAL Conference in Stockholm on 31.08 and 01.09
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