16 - Multi-tier Dispute Resolution in Russia

Summary

Multi-tier dispute resolution clauses are provisions in contracts that provide for distinct stages, involving separate procedures, for dealing with and seeking to resolve disputes. Multi-tier dispute resolution is used in Russian practice. But it must be recognised that Russian procedural legislation in support of ADR is still in the making. The rules of law governing pre-trial settlement of disputes have undergone many changes recently. Nonetheless, the legislature has been undecided for some time on the precise categories of dispute in respect of which a mandatory claim procedure or protocol should be established. The lawmaker has therefore revised the law in a disorderly fashion and that has generated caused intense criticism from the professional community. The main aim of pre-trial dispute regulation in Russia is to reduce the number of cases submitted to the courts. However, the backlog of cases before the courts continues to be as it was before the implementation of the most recent legislative amendments and the pre-trial settlement of disputes still remains mostly formal insofar as procedure is concerned (whether entered into as a result of mandatory requirements under the law or settled out of court by the parties). This article will start with an overview of the Russian judicial system. It will then review the institutions mentioned above, as well as analyse modern judicial practice in their application. It will conclude with practical recommendations for the improvement of pre-trial dispute resolution in Russia.