The Higher Arbitrazh Court agreed with the arguments of attorney Mushekh Gevorkyan and drastically changed its approach to cases reviewed by arbitration tribunals

The Higher Arbitrazh Court

After the Bureau attorney won a case pleaded before the Higher Arbitrazh Court, arbitration tribunals effectively lost the power to resolve disputes arising from contracts with government and municipal entities, as well as disputes relating to invalidation of such transactions.

In addition, the Higher Arbitrazh Court significantly limited the application of the arbitration clause to legal relationships based on the Federal Law of Russia “On placement of orders for the supply of goods, completion of work, performance of services for government and municipal needs“.

Mushekh Gevorkyan challenged before the arbitrazh court the rulings issued by an arbitration tribunal at the claim of the government entity  “Industrial and technological association for capital repairs and construction of the Department of Public Health of the city of Moscow “ to Arbatstroy LLC. The claim was filed in connection with a dispute arising from the performance of the government contract entered into with Arbatstroy LLC after it had won the tender. According to the contract, all differences between the parties were to be resolved by an arbitration tribunal.  Having heard the attorney’s argument, the arbitrazh court found that it was not competent to revise arbitration awards.

Disagreeing with this position of arbitrazh courts, attorney Mushekh Gevorkyan appealed with a supervisory complaint to the Higher Arbitrazh Court. His main argument was that an arbitration tribunal had no power to review legal relationships arising from government contracts, and that the arbitration clause in such a case shall be invalid. The case was escalated to the Presidium of the Higher Arbitrazh Court that agreed with the attorney’s argument and granted the claims.

The findings of the Higher Arbitrazh Court allowed attorney Gevorkyan to succeed in a reversion, on grounds of newly discovered facts, of two abitrazh court rulings that had taken legal effect earlier. “I am confident that the Ruling of the Presidium of the Higher Arbitrazh Court issued on my appeal, will allow to revise another case which is to be heard in the next few days “, - attorney Gevorkyan said.

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