ARBITRATION DISPUTES

ARBITRATION DISPUTES

Controversial situations often arise in business that cannot be resolved peacefully. We have to apply to the arbitration court. But it is difficult to defend your interests. You need a good knowledge of legislation and judicial practice, experience in arbitration. In many cases, a full-time lawyer of an organization does not have such qualities. And if we are talking about an individual entrepreneur or a small enterprise, there may not be a lawyer at all. Therefore, in order for the lawsuit not to end in defeat, it is worth using the help of an arbitration lawyer.

 

Disputes between business entities

 

The most common reason for applying to the arbitration court is corporate disputes arising between business entities. The following are the most common variants of conflict situations.

 

Non-fulfillment of obligations under the contract

 

Cases are common when two economic entities conclude a deal, and then one of the parties does not fulfill its obligations under it. Most often it is the customer of works, services, the buyer of goods. Usually, non-fulfillment of obligations is expressed in non-payment of the cost of goods or remuneration for work performed, services rendered.

 

Of course, in most cases such unscrupulous behavior is caused by economic difficulties for one of the parties to the contract. But this does not make it any easier for the second one - she has fulfilled her obligations.

 

If one of the parties to the transaction refuses to fulfill its obligations voluntarily, a lawsuit to arbitration is inevitable. That's where the help of an arbitration lawyer is needed. After all, protecting your rights involves a number of difficulties:

 

● Arbitration procedural legislation has its own specifics. To successfully participate in the arbitration process, you need to understand it well.

● Excellent knowledge of civil law is needed for the judicial resolution of corporate disputes. Not all lawyers can boast of it.

● The Arbitration Court is guided not only by the legislation, but also by the decisions of the plenum of the Higher Courts. To protect the interests of the company, you need to know the judicial practice well.

Therefore, in order to effectively defend your rights, it is better to seek help from a lawyer who specializes in arbitration.

 

Conflicts between shareholders

 

The second common type of dispute is conflicts between shareholders of JSC, LLC. They may have different views on the development of the company. At the same time, the executive body of a legal entity can generally see the company's path differently, without sharing the opinion of any of the opposing groups.

 

In such a situation, a dispute is inevitable. In practice, it turns out that the executive body performs actions contrary to the will of some shareholders or even makes decisions absolutely independently. This ends with a statement of claim to arbitration.

 

But here the plaintiff faces the above-mentioned problems – the need for deep knowledge in the arbitration process, judicial practice, civil legislation, and other branches of law. In most cases, there are none. Here, too, the assistance of a corporate dispute lawyer is required.

 

Improper performance of obligations

 

A dispute may arise due to improper fulfillment of obligations by one party to the transaction. For example, performing work under a construction contract in violation of the project. Or incomplete provision of the service.

 

With a favorable development of the situation, the party whose rights are violated simply does not accept work on the act or does not pay for the goods. But it happens that the shortcomings are not immediately identified. It is required to collect compensation or oblige the unscrupulous party to correct their mistakes. Often she doesn't want to do it voluntarily. We have to apply to the arbitration court.

 

Bankruptcy

 

Another case in which the assistance of an arbitration lawyer is required is the bankruptcy procedure. It has its own specifics due to the large volume and heterogeneity of the regulatory framework.

 

The main points of legal relations in the field of bankruptcy are regulated by Federal Law No. 127-FZ of 26.10.2002. But there are far from all the rules that determine the procedure. The rest is contained in the Tax Code, other laws, resolutions of the plenum of the Supreme Court, departmental regulations of the Federal Tax Service.

 

An untrained lawyer who does not have enough experience in bankruptcy will definitely miss something. This may end up damaging the company. And it doesn't matter if she is a creditor or a bankrupt.

 

That is why an arbitration lawyer is needed for the effective conduct of the procedure. He will help the bankrupt:

 

● minimize financial and material losses;

● save business;

● avoid subsidiary responsibility of the company's management.

And the creditor should carry out the procedure so that the bankrupt does not hide financial assets and property, fulfills his obligations to the maximum and repays debts.

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