When it is not possible to collect a debt in a pre-trial order, there is a need to go to court. Which court should you go to if your debtor is a Russian company and you are not a resident of the Russian Federation?
There are several options: a national court, a court in the Russian Federation, international commercial arbitration, a third party. When determining the competent jurisdiction, the following shall be taken into account:
1. Availability of agreements on legal assistance between your country and the Russian Federation. In particular, a list of such agreements concluded by the Government of the Russian Federation can be found on the website of the Ministry of Justice.
2. Participation of both countries in international conventions. For example, the Russian Federation and the United States are parties to the “UN Convention on the Recognition and Enforcement of Foreign Arbitral Awards” (was concluded in New York in 1958).
3. The presence in the very agreement between you and your Russian counterparty of a clause of jurisdiction in the resolution of the dispute.
As a general rule, territorial jurisdiction is determined – the dispute is resolved in the country where the debtor and his property are located. So, international debt collection will go through court in the Russian Federation, unless otherwise determined by agreement of the parties or other legal nuances.
What legal regulations are in effect?
Since we are talking about business entities, the rules of the Arbitration Procedure Code of the Russian Federation are of priority importance. In particular, a separate section of the APC – Section V “Proceedings in Cases with the Participation of Foreign Persons” is devoted to the resolution of disputes with the participation of non-residents.
Attention should be paid to articles devoted to the definition of the competence of arbitration courts in the Russian Federation (Article 247), requirements for documents of foreign origin (Article 255), and so on.
Which local court to file a claim with?
The claim is filed at the location of the defendant. The place of registration of a legal entity can be found on the website of the Federal Tax Service from the information contained in the Unified State Register of Legal Entities.
What are the requirements for documents for the court?
Documents of foreign origin are accepted by the arbitration courts of the Russian Federation if they are legalized or apostilled. If such documents are in a foreign language, a certified translation into Russian is also required.
How to calculate the state duty?
The size of the state duty is indicated in the Tax Code of the Russian Federation. Details for transferring the corresponding amount can be found on the court’s website. A receipt for payment of the state duty must be attached to the statement of claim.
Attention! The calculation of the amount of the state duty is incorrect – one of the common reasons for the court not accepting the case for consideration. This is an extremely important point that must not be overlooked.
What results of consideration of the case are possible?
Favorable result – the court satisfies the claim. After that, the procedure for the compulsory execution of the court decision through the Federal Bailiff Service (FBS) will follow. As a general rule, the judgment comes into legal force 30 days after it was issued.
Unfavorable result – the court rejected the claims or the defendant filed an appeal within the timeframe stipulated by the law. On the other hand, the plaintiff himself can also initiate the appeal and cassation procedures if he does not agree with the decision of the court of first instance.
Only an indicative algorithm of actions is considered here. Debt collection abroad requires knowledge of the many nuances of international and national legislation.
Therefore, to obtain a favorable result, contact the specialists of the Speaker Law Firm immediately. We have the necessary knowledge and experience, and we can provide you with effective assistance!