Dispute Resolution Methods

Every day entrepreneurs face situations that are associated with defending their interests in disputes with counterparties. Unfortunately, the parties cannot always resolve the conflict on their own and often involvement of a third party is required.

There are two main ways of resolving disputes arising in business:

Out-of-court

– (or alternative) method of dispute settlement that represents resolution of a conflict through negotiations, mediation, arbitration with the involvement of a third independent party, which the parties choose at their own discretion.

In foreign practice, alternative methods of dispute resolution are especially popular, since they save the parties time and money to resolve the conflict, and the participants respect the decision made, therefore, enforcement is not required.

Russian practice does not yet have extensive experience in using any other means of resolving the conflict other than negotiations, however, in 2019, amendments were made to Russian legislation, which introduced some conciliation procedures as a pre-trial stage. So far, optional, unlike the claims procedure, but this is one of the big steps towards the spread of an out-of-court method of resolving conflicts.

The main types of conciliation procedures under the new law include:

-       negotiation

-       mediation (with the involvement of a mediator or court conciliator).

In-court

– and the most popular method in Russia is the resolution of disputes with the involvement of state judicial bodies. Consideration of commercial disputes with the participation of legal entities and individual entrepreneurs pertains to the system of commercial courts of the Russian Federation.

The judicial system is designed in such a way so as to ensure not only protection of legitimate interests and restoration of the violated rights of the parties, but also to provide an opportunity for repeated revision of the adopted judicial acts by higher authorities in order to avoid errors in legal proceedings.

Over the past few years, procedural legislation has undergone many changes and now, in order to apply to a commercial court, you must have not only a higher legal education, but also be aware of the latest judicial practice, which will somehow help the course of your process.

TEAM lawyers are always ready to help your business and assist in the dispute settlement in any possible way.