In modern legal practice, disputes in the field of arbitration law are often resolved. Any process of the type under consideration must go through standard stages, including the initiation of a case, the implementation of its consideration on the merits, as well as the completion of proceedings followed by a decision on it.
Sometimes it happens that the arbitration proceedings are terminated. What legal grounds are provided for this?
Arbitration proceedings: general concept
What is arbitration? In legal practice, this is called a judicial procedure, the main action of which is aimed at the legal protection of the legitimate interests and rights of individual citizens who have the status of entrepreneurs, as well as entire organizations, regardless of their form of business.
It is important to note that in the framework of the arbitration process, not only cases with an economic background are resolved, but also those based on disputes regarding entrepreneurial or any economic activity.
It is important to note that the scope of regulation of arbitration courts also includes cases in civil and administrative disputes.
Normative regulation
It is important to note that the entire process of conducting the production of the type in question is governed by the arbitration law currently in force in the Russian Federation. This complex includes, first of all, the Arbitration Code (AK) and the Arbitration Procedure Code (AIC).
In addition to these normative acts, other laws and acts are important in this area, including:
- Constitution of the Russian Federation;
- the law "On the judicial system in the Russian Federation";
- the law "On Arbitration Courts in the Russian Federation";
- other acts of a regulatory nature, which in one way or another have in their content the norms referred to the system of arbitration procedural law.
It is important to note that the regulation of the arbitration process is also carried out by acts in force in the system of international law. Among these are the Hague Conventions:
- on issues of the civil process of 1954;
- on obtaining evidence in civil cases abroad;
- on delivery of extrajudicial and judicial documents abroad.
Reasons for terminating arbitration proceedings
Article 150 of the Arbitration Procedure Code enshrines a specific list of grounds for terminating proceedings. According to the agro-industrial complex, good reasons for this are:
- violation by the parties of the rules of jurisdiction;
- the presence of a court decision previously issued in a similar case with the same parties regarding the same subject of the dispute;
- the presence of the plaintiff’s rejection of the claim accepted by the arbitration court;
- the fact of liquidation of the organization acting as a party in the case under review;
- the fact of the death of a citizen acting as a party to the case (in this case, the fact of succession is unacceptable, since there is a controversial legal relationship);
- the existence of a decision adopted on the same subject with respect to the same parties adopted by the justice of the peace, with the exception of cases when the arbitral tribunal refused to submit a writ of execution by decision.
In addition to all of the above, the termination of the proceedings is also possible if the parties reach an amicable agreement on the matter under consideration.
Having studied the general list of grounds for terminating the proceedings on the agro-industrial complex, it can be noted that they can be divided into two main groups:
- evidence that the proceedings in a particular case were started erroneously;
- cases in which the proceedings were opened legally, but in the future the process of considering the case as before becomes unnecessary or inappropriate.
Let us further consider the list of all these grounds in more detail, indicating their main features.
Motion to dismiss
It is important to note that in addition to all of the above, a significant reason for the termination of proceedings in the framework of the arbitration process is the case of the filing of the relevant application.
Absolutely all participants in the initiated process can apply for termination of the proceedings (under the agro-industrial complex). It is important to note that the filing of this petition is the most common reason for the cessation of production.
The main features of the compilation and execution of the document in question are described in Article 159 of the Arbitration Procedure Code. Its content says that this document must be compiled in hard copy and presented on paper. Its content must certainly indicate weighty grounds confirming the stated requirement, with reference to the provisions of regulatory acts.
It is worth noting that the normative acts indicate that in the case of filing a petition that does not comply with the established requirements, the court has every right to leave it unattended and, as a result, to move further. However, in the event that the document is compiled in strict accordance with the requirements and a clear justification of certain reasons, its presence may entail the termination of the proceedings (under the APC of the Russian Federation) on the basis of the presence of substantial objections.
It is important to note that this application can be filed at any stage of the current process - this is enshrined in the norm contained in part 1 of article 35 of the Civil Procedure Code of the Russian Federation, as well as in part 1 of article 41 Arbitration Procedure Code. In fact, if the application was rejected by the judge, it can be re-filed, moreover, an unlimited number of times. The participants in the process themselves have the right to maintain this document or its rejection.
Jurisdiction
It is important to note that in all cases where the application was filed in violation of the rules of jurisdiction, the judge of the arbitration court must make a decision to terminate the proceedings (in the AIC). It is worth considering that this rule applies only to those cases when an application is submitted regarding the opening of a case, to non-jurisdictional arbitration proceedings.
A vivid example is the case when the lawsuit was filed by the prosecutor - a person who does not have the right to appeal to the arbitration court in order to initiate the initiation of the proceedings in the case. This is indicated in Art. 52 Arbitration Procedure Code of the Russian Federation. A similar example is the fact of a lawsuit filed by an organization that does not have legal entity status (or in relation to one). In other words, if the subject is not granted the right to appeal to the arbitration court, then the case cannot receive further progress.
Speaking about the jurisdiction of the dispute, it is also worth paying attention to the content of Chapter 4 of the RF Arbitration Procedure Code. Based on the data presented in it, it is worth noting that the determination of such a factor occurs on the basis of the following criteria:
- the subject composition of persons who dispute among themselves;
- the direct nature of legal relations arising between the parties involved in the case.
Availability of a decision in such a case previously issued by another court
It should be understood that the dispute that has arisen cannot be considered in arbitration if a decision has already been taken on it by a court of another instance.It is important to note that in this situation we are talking only about those cases in which the proceedings were conducted in respect of the same circle of persons and had the same subject of dispute.
The legislator notes that in the event of the cancellation of an earlier entered into force decision, the arbitral tribunal has the full right to take the case for its own consideration, citing the presence of newly discovered circumstances. This right is provided for by Art. 311 Arbitration Procedure Code of the Russian Federation.
It is worth noting that, according to the APC of the Russian Federation, the termination of the proceedings should also be carried out if the decision of a foreign court on the matter under consideration came into force (based on innovations in the agribusiness made in 1995). This norm cannot be applied if in fact there is a refusal of the Russian arbitration court to recognize and enforce the adopted norm.
The presence of the plaintiff’s rejection of the claim
In the legal practice of conducting arbitration proceedings, it often happens that in the course of the consideration of a case, for some reason, the plaintiff decides to abandon the lawsuit submitted by him before the time the decision is made on the case under consideration. In this situation, an important factor determining the possibility of termination of proceedings is the court’s consent to this action.
It is worth noting that under the circumstances, the situation actually develops so that the plaintiff, in essence of his claim, refuses to defend his substantive claim, carried out in court.
It is worth noting that in order to terminate the proceedings on the case (under the agro-industrial complex), the court must make sure that there is no third-party pressure on the plaintiff in the process of making a decision to refuse the lawsuit.
The fact of the death of one of the parties or the liquidation of the enterprise
An essential reason for the termination of proceedings in the AIC case is the occurrence of the disappearance of one of the key parties to the proceedings (the defendant or the plaintiff). In accordance with the law, such as can be a complete liquidation of the enterprise (without the presence of a successor), and the onset of human death. It is worth noting that the fact of liquidation of an enterprise can only be confirmed by the presence of an appropriate entry in the Unified Register.
The particular subtlety of the rule in question is explained by one of the Plenums of the Supreme Court of the Russian Federation, which pays attention to the fact that if an individual takes part in the arbitration process as an individual entrepreneur, but loses this status for any reason, then , based on the requirements of Russian law, the proceedings should be immediately completed.
In the event that the fact of the death of one of the participants in the ongoing process occurs, the case must also be closed. In this situation, the resolution of issues regarding the transfer of property rights from one person to another should be carried out in the course of civil proceedings, on the basis of other regulatory acts. It is important to note that in the situation under consideration, procedural succession may occur when the property of a citizen was transferred to the ownership of a person of a legal type, as well as to the state, represented by bodies and executive structures by will or by law.
Reaching a settlement
On the basis of the agro-industrial complex, the termination of the proceedings by amicable agreement is possible on completely legal grounds, presented in Article 139 of the Arbitration Procedure Code.
The parties must draw up a settlement agreement and sign it, and then provide the prepared document for consideration by a judge. After checking the act, the judge must approve it. It is worth noting that the opportunity to submit a settlement is available to the parties at any stage of the consideration of the case.
After the settlement is approved, the judge must explain to the parties the consequences of the legal type that may arise after this procedure.
It is important to understand that the procedure for concluding a settlement agreement can occur at any court instance. It is from here that it is worth concluding that, despite the essence of the decision adopted by the court of first instance, an amicable agreement can be taken in any other instance, in the process of appealing the decision.
Procedure for termination of production
It is worth noting that in judicial practice the termination of the proceedings (in the AIC) should be carried out in the order strictly specified by law.
In accordance with the established rules, if a decision is made to terminate the process of further consideration of the case, the judge must make an appropriate determination. The body of this document should indicate motivated reasons, supported by references to acts of a regulatory nature, as well as significant circumstances.
In the case of termination of the proceedings (under the APC of the Russian Federation) due to non-compliance by the parties with the principle of jurisdiction in the process of submitting the document, the judge must decide on the return of the state duty paid from the federal budget, as well as the fair distribution of this amount between the parties.
It is important to note that upon refusal to further consider the materials, copies of the adopted ruling on the termination of the proceedings should be sent to each participant in the process.
Consequences of Termination of Production
Speaking about the consequences of the termination of the proceedings (in the APC), it should be noted that the determination made by the judge in the end is not subject to appeal in any order. The same rule applies in cases where the court decides to leave the statement in the case without further movement. The prohibition of appealing the termination of proceedings (under the agro-industrial complex) is mentioned in Article 151 of the Arbitration Procedure Code.
It is important to take into account the fact that a significant consequence of the considered scenario is the inability to re-appeal to the arbitration court in order to resolve the same issue. The law states that this dispute is not allowed with the participation of the same parties in relation to the same subject and on the same grounds.