Arbitration asks for more powers – Kommersant
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Within the framework of the St. Petersburg International Legal Forum (SPBILF), the Ministry of Justice discussed with participants in the arbitration market the current problems of arbitration courts. Representatives of business communities, arbitration centers and legal science stated the need to expand the range of disputes that can be considered in permanent arbitration institutions (PAAI). To combat ad hoc courts, proposals were made to limit their competence only to international disputes, excluding all national disputes from it. Corporate lawyers separately drew attention to the need to popularize arbitration, since now it is not in great demand by business.
On Saturday, May 13, the SPBILF hosted an open meeting of the Council for the Improvement of Arbitration Proceedings under the Ministry of Justice of the Russian Federation. Minister of Justice Konstantin Chuichenko proposed to evaluate the results of the arbitration reform, which has been carried out for more than seven years. According to him, while arbitration in Russia is “not able to compete” with the state system of courts, “the dynamics of its development is highly commendable.”
Vadim Chubarov, Vice President of the Chamber of Commerce and Industry of the Russian Federation, considers it necessary to make disputes related to state and municipal orders available for consideration in arbitration courts (now they can only consider disputes over contracts concluded on the basis of 223-FZ).
He also drew attention to the continuing problem of ad hoc courts: some of them are actually permanent courts, despite the limitations of the law. The state courts refuse to issue writ of execution against such decisions, however, according to Mr. Chubarov, the motives for the refusal do not always lie precisely in the violation of the law and rules of arbitration by such arbitrators. Thus, it is necessary to improve judicial control in this area.
To solve this problem, Vadim Chubarov proposed to borrow Chinese experience – to limit the possibility of applying ad hoc only to free trade zones, that is, only to international commercial arbitration.
He asked the Ministry of Justice to think about enshrining in the law the right to consider national disputes only in PAAU (they receive permission from the ministry to operate), and prohibit it ad hoc.
Vice-President of the Russian Union of Industrialists and Entrepreneurs Alexander Varvarin noted that Russia has an “effective system” of arbitration and “effective legislation” in this area, but also acknowledged the existence of certain problems. One of them is the need for interim measures in arbitration to ensure effective proceedings and protection of the rights of participants in disputes, but the law did not include provisions regarding the enforcement of interim measures taken in arbitration. If before the arbitration reform this might have been superfluous, Mr. Varvarin specified, now “the system has been built”, “it is necessary to introduce these standards”, which exist in many countries.
In addition, he proposed to legislate the possibility of notifying the parties to the dispute in electronic form, and not only in paper form. Electronic turnover (exchange of documents between arbitrations and state courts), in his opinion, could also help correct the situation with violation of the monthly deadline for issuing a writ of execution.
Alexandra Nesterenko, President of the Association of Corporate Lawyers, emphasized the need for greater popularization of arbitration in Russia as a way to resolve disputes, which is not currently in great demand by business.
According to her, it is necessary to involve lawyers, students of law faculties in this process in the form of moot-courts and other events. Corporate lawyers, she added, are ready to help with this and provide support.
In the process of speeches, the majority of Council members spoke in favor of increasing the range of arbitrable disputes (which can be considered by arbitration courts) and expanding the practice of submitting corporate disputes and consumer protection disputes to arbitration. In addition, according to the participants of the meeting, it is necessary to increase the guarantees of independence and immunity of arbitrators.
Summing up the results of the meeting, Konstantin Chuichenko agreed with the need to correct the legislation. He clarified that the ministry proposes to systematize all proposals and then hold another meeting with the members of the Council.
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