Commercial litigation involving non-residents: some aspects of jurisdiction

The issues of judicial practice in resolving economic disputes, including those related to the international collection of debts, of which non-residents are participants, “pops up” mainly when determining their jurisdiction. Consider the points that must be taken into account by the parties to foreign economic agreements when applying to Ukrainian economic courts.

Overview of general and specific legislative rules

The jurisdiction of cases involving business entities of foreign origin is determined by Art. The 124th CEPU, as well as laws and international agreements verified by the Verkhovna Rada, are mandatory.

According to the norms:

  1. Disputes arising between the subjects of foreign economic activity (business entities-foreigners) are considered in economic courts of Ukraine. This is required by the provisions of Articles 12-14 of the Code of Economic Procedure of Ukraine, Articles 38, 39 of the Law of Ukraine “On Foreign Economic Activity”, as well as Article 73 of the Law of Ukraine “On Private International Law”.
  2. The jurisdiction of the Ukrainian court is valid in relation to all legal relations arising in our country, in accordance with Art. 124th KU. Nevertheless, this norm does not remove the question regarding the delimitation of competences in dispute resolution.
  3. Responses to delineation are determined through the prism of the constitutive designation of specialization, which defines the concept of “economic jurisdiction.” Such is the normatively defined competence of the organs of the justice system in resolving disputes in the manner of economic proceedings.
  4. The right of foreign companies and organizations to consider and the jurisdiction of disputes for consideration in economic courts are regulated by Art. 1 and Art. 12 CEPU. It is said that disputes involving legal entities and citizens-entrepreneurs of foreign origin, including contractual ones, are considered by economic courts.
  5. This form of protection of rights for foreign business entities is based on the principle of arbitration, which is used by economic courts to achieve a “peace” dispute between the parties through the conclusion of agreements.
  6. The competence of the courts between different courts is distinguished by determining the specific tasks of the court for consideration and resolution, according to the category of cases and according to the directions of the court.
  7. The international law does not fix the rules that delimit the competence of the judicial authorities of different countries, therefore it is determined by the national legislation of each individual country.

In the article, we briefly touched on the rules of jurisdiction and did not touch upon international arbitration at all, since the material is exclusively for review.

To understand the complexity of the jurisdiction of each specific case in Ukraine or abroad, a deep analysis of the details of a particular problem is required.

Lawyers of the “Speaker” Law Firm are ready to answer all your questions and resolve any dispute both through out-of-court settlement and in court at any level – in Ukraine, Poland, Moldova, the United Arab Emirates and any other country.