Protection of violated rights in arbitration court

Jan, 16 2020

Companies and individual entrepreneurs while carrying out its business activities, inevitably face conflict situations related to violations of its rights. In such circumstances, the most common and effective method of resolving a conflict is to protect violated rights in an arbitration court. According to Russian legislation, disputes involving legal entities, organizations and individual entrepreneurs are resolved by arbitration courts.

1. Filing and drafting of claim, drafting the statement of defense

Company or an individual entrepreneur can carry out the protection of their rights by filing a claim to Arbitration court. This can be done either on their own or by contacting law firms representing the interests of principals in courts. If the applicant decides to hire the services of intermediaries, he needs to draw up a notarized power of attorney containing a list of powers delegated to the representative.

After choosing a representative, or while protecting its interests by itself, a person whose right is violated must prepare a statement of claim. It should be submitted to the arbitration court at the location of defendant, or, if jurisdiction is determined by the terms of agreement, to the appropriate arbitration court. The document should be properly prepared and comply with legal requirements. So, according to the provisions of Article 125 of the Arbitration procedural code of the Russian Federation, the statement of claim should contain:

  • the name of the claimant and information about defendant (address, name, адрес, наименование, Taxpayer Identification Number (INN) – for organization, name, surname, parent name, number of known documents – for individual);
  • the claims of the claimant in respect of the respondent with reference to laws another normative legal acts, and in the event of filing a claim to several respondents, claims in respect of each of them;
  • the circumstances serving as a basis for claims and the evidence proving these circumstances;
  • the price of claim where a claim is subject to evaluation and the calculation of a recoverable or disputable sum of money;
  • information on the following by the claimant a claim or other pre-trial procedure;
  • list of attached documents etc.

Statement of claim as well as the documents attached should be sent by plaintiff not only to Arbitration court but also to other parties of the process – defendant and third parties. Today it is possible to file a claim remotely via official web-site of Arbitration court.

At the same time if the right of an organization or an individual entrepreneur is violated by filing a statement of claim, it is necessary to draw up a motivated statement of defense containing a legal position with references to the legislation. The statement of defense should also be sent to the court and other parties of the case.

Protection of interests in arbitration proceedings

After filing of a statement of claim and accepting it by the court for proceedings, the parties proceed to defend their interests directly in the framework of court proceedings. During the court hearings the parties are to present their position correctly and reasonably to the court for protection of violated right.

The Civil Code of the Russian Federation provides a list of acceptable ways of protecting civil rights. According to article 12 of the Civil Code, these include:

  • the recognition of the right;
  • the restoration of the situation, which existed before the given right was violated;
  • the recognition of the disputed deal as invalid;
  • the recognition as invalid of an act of the state body or of the local self-government body;
  • the self-defense of the right;
  • the compensation of the losses, the exaction of the forfeit, the compensation of the moral damage;

Director general or an individual entrepreneur may independently protect the violated rights of a legal entity in the arbitration court, regardless of education. In other cases, only lawyers or representatives with a diploma of higher legal education can protect interests in the courts.

Appeal and cassation instance

After the arbitration court delivered the decision on the case, the party that does not agree with this decision has a procedural right to appeal it. In order to challenge a court decision, an appeal should be prepared. It describes the reasons for disagreeing with the decision of arbitration court of the first instance with references to the legislation. As a rule, the appellant requests to cancel the decision of the trial court and adopt a new judicial act in the case.

The deadline for filing an appeal is one month from the date the decision was delivered by the court of first instance. For certain categories of cases, other deadlines for filing an appeal are provided. It is submitted to the registry of the arbitration court of first instance.

If the arbitration court of appeal comes the same decision as the court of first instance, the person whose right has been violated has the right to appeal to the cassation instance with a cassation appeal. It should contain a reasoned position explaining to the court the misinterpretation and application of law by lower courts. The term for filing a cassation appeal is two months from the effective date of the appealed decision.

Our services

VALEN offers its services in protection of violated rights in arbitration courts. Our experts will analyze your situation, help in developing a dispute resolution strategy, prepare a legal position, collect and submit to the court the necessary set of documents and implement the protection of the client’s rights in court.

Our company specializes in the settlement and resolution of economic, corporate, tax and other disputes subject to arbitration. Contact us and we will help you to successfully protect violated rights in arbitration courts of all instances.