Many do not know what arbitration courts are. And this is not surprising, since, despite the large number of them created with commercial organizations and legal entities, in Russia this legal procedure is poorly developed. Some lawyers have no practice at all in such courts.
The concept of "arbitration court"
What are arbitration courts? This is a permanent or temporary acting body formed by disputed issues by both parties, that is, an alternative version of state justice. The arbitration court is one of the most acceptable forms of lawful resolution of disputes in order to avoid state jurisdiction. The goal is to resolve the conflict and control the voluntary performance of obligations.
The arbitration court is a conventional name denoting an organization or institution engaged in the formation of the composition of participants for the resolution of one or several disputes by mutual agreement of the conflicting parties. Such a court can be created for arbitration and endowed with advanced functions.
What is the power of the arbitrator based on?
Judge - a third party having the trust of both parties and making a decision in a particular case between the parties to the dispute. They, in turn, undertake to submit in advance to the decision of the arbitrator. He can be appointed by the parties to the conflict from among independent experts.
Types of Arbitration Courts
What are arbitration courts? These are the authorities created by the parties to the conflict to resolve it. They can be permanent or temporary, created only for a one-time solution to one or more conflicts. There are significant differences between temporary and permanent arbitration courts.
Permanent Arbitration Courts
A permanent arbitration court cannot be formed under the federal bodies of state power and local self-government. The parties who applied to this arbitration court do not agree among themselves on all procedural issues, but strictly follow the already established rules. Permanent courts can be created by trading exchanges, enterprises, chambers, etc., which are legal entities.
Such a judicial authority constantly informs the arbitration authorities about the composition and procedure for conducting each case. Data is provided voluntarily. But, if information on the case has not been submitted to the city or district arbitration court, then he will not be able to subsequently facilitate the execution of the arbitration decision.
What are arbitration courts created to resolve a particular dispute?
Courts created to resolve a particular dispute are otherwise called temporary. In this case, the parties are obliged to independently form an arbitration court (find a lawyer, etc.), agree on a procedure for considering one or more conflicts, and organize the composition of participants. The appointment of an arbitrator may be specified in a contract or a separate agreement. Since the composition of the participants is formed on the basis of a special document, this arbitration court ceases to exist immediately after a decision is made.
Agreement and Arbitration Agreement
When resolving a conflict between the disputing parties, a temporary arbitral tribunal, the right to make a final decision is stipulated in advance by all parties to the dispute, must follow federal laws established by law.
Consideration and resolution of a dispute is possible only if there is an agreement (arbitration record) between the conflicting parties.Such a document should be drawn up in a specific form, be in writing and be certified by the signatures of all participants.
The contract can be created on the basis of letters, telegrams, electronic messages and using various means of communication, the content of the conversations of which can be fixed. A separate (arbitration) agreement may be added to an existing agreement additionally.
But with the condition that it contains a reference to the agreement, which must be considered part of the main document. If the arbitration agreement is not concluded in writing with the signatures of the parties, then it may be invalidated. It can be written additional conditions. For example, the language of communication, a place to resolve the conflict, etc.
Who can be arbitrators?
The dispute can be resolved in an arbitration court by one judge or several. But their number must be odd. A judge can only be an individual who is able to ensure impartiality in a decision between the disputing parties. It should not be interested in the final outcome of the case and be an independent evaluator of the conflict.
A person cannot be selected as an arbitrator:
- legally incompetent;
- having a criminal record or prosecuted at the time of the hearing of the case;
- previously worked as a lawyer, whose professional activity was terminated due to violation of the law;
- due to job status.
Principles of Arbitration
Arbitration shall respect the equal rights of the parties. A judge is obligated to fulfill his obligations based on the principles of:
- legality;
- impartiality;
- confidentiality;
- independence.
The execution of the decisions of the arbitration courts is executed within the time limits set by it (otherwise immediately), on a voluntary basis. If the defendant has not fulfilled his obligations, then coercive measures are applied. The arbitration court (or district) court appeals to the party in whose favor the arbitral tribunal ruled. A writ of execution is the basis for the enforcement of a decision by force. The duty to monitor the execution on time rests with the bailiffs. The writ of execution is transferred to the defendant. If he does not fulfill obligations, then fines are imposed on him.
Appeal of the decision of the arbitration court
The decision of the arbitration court may be appealed if the agreement does not stipulate that it is final. The grounds for cancellation may be the decision to go beyond the boundaries of the agreement or its invalidity, or a violation of the law in terms of the composition of the court and the proceedings.
The parties may apply to the district court for the annulment of the arbitral award, but within a period of up to three months. The countdown is carried out from the day the challenged party receives the arbitral award, and the state fee is paid. An application for cancellation of the decision is submitted in writing, signed by the person concerned or his representative. The main thing in the statement is a thorough argumentation of the shortcomings or errors during the arbitration proceedings.
Grounds for annulment of the arbitral award
The decision of the arbitration court may be reversed if there are good reasons:
- the decision does not comply with federal laws;
- the party was not warned about the arbitration, its number, place and time or could not be present for good reason;
- the arbitration decision was made in a case not provided for in the contract and not subject to the terms of the agreement;
- the composition of the court or the procedure itself did not comply with federal law or the agreement of the parties;
- the decision violates the basic principles of Russian law;
- the dispute could not be the subject of consideration, according to federal law.
An application for the annulment of an arbitral award in a district court shall be considered within a month from the date of receipt of the application.During the preparation of the case for legal proceedings from the arbitration court may be requested materials for review. Both parties involved in the arbitration agreement shall be notified of the place, date and time of the hearing. Failure to appear is not an obstacle to hearing.
If the arbitration court decision is canceled, the parties are entitled to apply there again. Provided that the opportunity to appeal has not been lost, or continue to resolve a contentious issue in a civil court.
