Reference tribunal court
- Written by Administrator
Such demands as compensation for harm suffered, restoration of violated rights, a penalty or damages often take place only in state courts (arbitration or the courts of general jurisdiction) because the possibility of reference tribunal as justice is not known to everyone.
Meanwhile, the appeal to the reference tribunal is a more efficient and modern way to resolve the dispute. Through the reference tribunal one can not only reduce the inevitable costs, but also leave the conflict situation in the state of the dialogue held by skilled and respected by the parties arbiters of the reference tribunal. It is necessary to add that opposite to mediation procedure, the results of reference tribunal proceedings are made not in the form of the deal, but in the form of the decision that can be accepted by the legal significance of the legislator, pointing as the basis: for registration of property rights, for issuing the writ of execution.
Advantages of reference tribunal compared with the process in state court
1) Ability for the disputing parties to select reference tribunal arbiters.
One does not have the ability to select the arbiters in a state court, but in the reference tribunal both the plaintiff and the defendant have the right to participate in the formation of court structure which will carry the case. So they can choose the most qualified, competent and objective court up to their mind.
Sometimes the aspects of dispute refer to the sphere of special knowledge and skill, for example, activities in the securities markets, interbank relations, etc. That is why specialists skilled in various fields of law and economics are included in the list of arbiters of reference tribunal.
It is necessary to mention that selected arbiters are not representatives of the parties, they are fully independent in the proceedings. The duty of the arbiter is only a proper performance of functions in considering the case and making a decision on it.
2) Confidentiality of reference tribunal proceeding.
In the state court cases connected with state and commercial secret are closed for not relevant visitors.
In the reference tribunal court the question about the presence of people, who are not representatives of the parties, is decided by the parties themselves. If at least one of the parties is objecting to the presence of other people at the meeting, the reference tribunal court may not decide otherwise.
3) The terms of dispute consideration in the reference tribunal.
The terms of dispute consideration are much shorter than in state courts. For example, while applying to the reference tribunal, the average time is 50-60 days, when in the court of arbitration this may take about 120-180 days, therefore in the case of the appeal and cassation, the period of time may increase up to 210-360 days.
4) Court costs of the parties.
The amount of reference tribunal fee, especially in the case of large lawsuits, is usually lower that the amount of the state court fee. The parties not only save time but money.
5) Simplicity of procedure.
There is no strict regulation such as it is in a state court. The parties themselves can influence the order in which the arbitration will proceed. For example, if the parties agree on the point that the dispute will be considered by the one arbitrator, but not by the group.
6) Place of trial.
The cases are considered in the place where reference tribunal is situated, but not in the place of the defendant. In agreement with reference tribunal one can choose any other place to consider the dispute.
7) Execution of the court's decision.
The party against which the decision was held, does not always follow the prescription of the court. In this case an enforcement starts, to start it one should apply to a competent state court and get a writ of execution.
In this case a procedure of court will not start again. Law of civil procedure (Codes of civil and arbitral procedures) clearly regulates how the application for a writ of execution should go. This is not a lawsuit procedure, when it is necessary to prove the claims or to object to the requirements of the other party.
It is worth paying attention to the fact that applying with a lawsuit for payment to the state court – an amount of the fee is quite large, but cost for application for a writ of execution is minimal.
8) The possibility to execute the decision of the reference tribunal on the territory of another country.
This is especially important for participants of international relations. It is easier to execute the decision of the reference tribunal court outside of Russia than to do the same with the decision of a state court, because the enforcement of reference tribunal decisions is governed by the New York Convention "About the Recognition and Enforcement of Foreign Arbitral Decisions", which has been ratified by more than 100 countries, including the former Soviet Union.
And in the case of the state court one must have a bilateral agreement on legal assistance between countries, which Russia signed not with the all states.
Prerequisite for application to the reference tribunal:
A prerequisite for application to the reference tribunal is the existence of the reference tribunal agreement. It can be included in the contract as one of its conditions ("reference tribunal clause"). It can also be enclosed in a separate agreement, including the aim to resolve the dispute, which has already appeared. Reference tribunal agreement should be concluded in a written form.
Text recommended for reference tribunal agreement (reference tribunal clause):
«Any dispute, disagreement or claim arising out of this contract or connected with it, including its performance, violation, termination or invalidity, shall be settled by the reference tribunal court at the limited liability company «Legal advice agency «Chastnoe pravo» according to its Regulations». The decision of the reference tribunal court is final.».
We offer companies to use the advantages of resolutions of conflicts in the reference tribunal court at the legal advice agency «Chastnoe pravo»