Arbitration tribunal. Company from Kazakhstan
Kazakhstan is a participant in international economic relations, a member of the WTO, EAEU, and SCO. Companies from Kazakhstan have a fairly large number of business partners from around the world.
And, of course, when a dispute arises, the company thinks about how to resolve it most effectively and quickly, saving money, reputation and time. We will answer you: Arbitration tribunal.
In this article we will talk about why arbitration tribunals (commercial arbitrations) so often choose by partners, and we will talk about the procedure for filing a claim and trial.
What is an arbitration tribunal?
Arbitration tribunals are also called commercial arbitrations, we will use both terms in the article.
The New York Convention of 1958, to which Kazakhstan is a party, regulates that countries party to the convention will recognize and enforce arbitration decisions.
The system of commercial arbitration (arbitration tribunals) is a large number of countries (about 170) in which there are arbitration tribunals, and government bodies recognize and enforce decisions of arbitration tribunals.
All arbitration tribunals have the same rules of trial. They are established by the rules of commercial arbitration.
International commercial arbitration is one of the most popular ways of resolving disputes between parties to an international contract. These may be different areas of commercial activity. According to statistics, the most popular type of dispute is the contract for the supply of goods, but there are also disputes over rent, investment, and purchase and sale.
An arbitrator is a judge who resolves a dispute in arbitration tribunals.
The work of an arbitrator must comply with several basic principles:
- Impartiality of the arbitrator;
- Independence of the arbitrator.
Why should you choose us?
- We have extensive experience in international disputes between companies in arbitration;
- Our specialists know well the norms of international private law and speak English;
- We work with any category of disputes in arbitration;
- We will help you evaluate the situation, as well as accompany the legal dispute in arbitration from beginning to end.
Why parties choose commercial arbitration?
Arbitration tribunals (commercial arbitrations) have several advantages due to which parties often choose them.
Freedom to choose an arbitrator We are talking about the fact that the parties themselves choose an arbitrator who is a specialist in the field they need. For example, in a state court there is a quite small chance to find a specialist in the delivery of goods with knowledge of German, but in an arbitration tribunal it is possible.
Freedom to choose the format of the dispute When partners are in different countries, it is more convenient for them to participate in the arbitration hearings online, the arbitration tribunal has such an opportunity.
Freedom of choice of language The dispute may be held in the language chosen by the parties. Most often parties choose English.
Confidentiality. Everything is simple here, the materials of the dispute are not published.
Simplicity and speed of judicial proceedings The rules for organizing arbitration hearings are simpler than in state courts, the decision of the arbitration tribunal cannot be appealed, and the terms for consideration of the dispute, as a rule, are up to 180 days.
How to submit a claim to an arbitration tribunal?
To begin, companies from Kazakhstan need to select the arbitration tribunal in which they want to apply. There are quite a lot of options, since about 170 countries are parties to the convention.
We will tell you how to file a claim in several of the most popular commercial arbitrations.
Stockholm Commercial Arbitration
Chinese commercial arbitration
The rules of all commercial arbitrations are largely similar, as is the dispute resolution procedure. We will give instructions step by step.
Step 1 We agree with the defendant on the rules of the dispute
An arbitration clause is a clause in a contract or in a separate additional agreement in which the parties select commercial arbitration, the place of arbitration, the number of arbitrators, the language and nominate the arbitrators.
The official websites of arbitration tribunals provide us with a sample form for an arbitration agreement.
“All disputes, disagreements or claims arising from this contract (agreement) [in the case of concluding an independent arbitration agreement, the specific contract (agreement) is indicated] or in connection with it, including those relating to its entry into force, conclusion, execution, violation, termination or validity must be subject to _________ commercial arbitration tribunal in accordance with its applicable rules and regulations.
The arbitration decision is final for the parties.
The number of arbitrators in resolving a dispute will be ________
Language of the proceedings The parties chose__________
Format of the trial The parties chose__________
You also need to choose a dispute resolution procedure.
There is regular, expedited and emergency. The usual procedure is consideration within 6 months, three or one arbitrator, the parties receive the decision immediately after it is made.
Expedited procedure – one arbitrator, his fee is reduced, an organizational meeting must take place within 15 days after the transfer of the case materials to the arbitrator, who must make an arbitration decision within 6 months
There is also an emergency procedure. The parties send documents, an arbitrator is appointed one day, and he resolves the dispute within 5 days.
Here you need to calculate the cost of the trial. Commercial arbitration is more expensive than state court, but we will tell you how to compensate these costs.
You can calculate legal costs using the calculator on the arbitration tribunals website. Let’s give links:
Stockholm Commercial Arbitration
Chinese commercial arbitration
Legal costs consist of an organizational fee and arbitrators’ fees and depend on the value of the claim.
First you need to pay an organization (registration fee) fee. Be sure to keep your payment receipt.
Step 2 Submit a request for arbitration
All information that we wrote in Step 1 must be written in the request for arbitration. You also need to add an arbitration clause and a receipt for payment of the registration fee.
You can send a request for arbitration to the arbitration email.
Send a request for arbitration through the platform on the arbitration website, we have given links to official sites above.
Next, you need to wait until the arbitration office responds with confirmation of the arbitration. The court will set deadlines for filing a statement of claim, a response to the claim for the defendant, evidences, etc.
Step 3 Write a statement of claim
Our main document is the statement of claim. A good claim is part of our success in litigation.
We will tell you how to correctly write a statement of claim. In arbitration tribunals, there are fewer requirements for a claim than in a state court, but it must also have a structure and be understandable to the arbitrator.
It’s worth starting with the contact details of the parties, write them on the top right, add the name, address, tax and registration number of the company from Kazakhstan, the same should be written about the defendant.
We recommend dividing the main part of the claim:
- Description of the main facts. Write what happened by date, all events, legal facts, write the names of all documents that are important for the dispute.
- Legal position. Here, most often, you need the help of a lawyer to find the rules of international and national law. Prove that the plaintiff is right from the point of view of the law.
- Requirements In this section we write what we want to receive from the defendant.
- Attachments At the end we write all the necessary documents that are needed for our dispute. We add the documents themselves to the claim. Don’t forget about the receipt for payment of fees.
Evidences
Special attention should be paid to evidence. Whoever has the best evidence will win the legal dispute.
What will be useful to us?
- Contract with the defendant, additional agreements;
- Check, payment orders;
- Acts of acceptance of transfer;
- Transport documents, invoices;
- Correspondence with the defendant.
Step 4 Participate in court hearings
As a rule, parties from different countries choose the online format of court hearings.
The arbitration tribunal will hold court hearings, invite witnesses to provide additional evidence or statements at the established time frame. (It all depends on the procedure we previously chose).
The arbitrator will evaluate the parties’ evidence, legal position and make a decision. The decision of the arbitration tribunal cannot be appealed.
At this stage, we need to compensate for our large legal costs. There is a cost compensation rule, which means that the losing party will pay everything.
If your company from Kazakhstan wins the dispute, then in this case you need to write to the arbitration tribunal an application to recover from the defendant court costs and legal expenses. The arbitration tribunal will consider the application and make a decision.
Step 5 We get the arbitration decision and celebrate
As we said, the decision of commercial arbitration is recognized by about 170 countries, including Kazakhstan, which means that such a decision can be enforced in these countries and get your requirements.
Companies from Kazakhstan need to responsibly choose arbitration and prepare to participate in a dispute. Arbitration is an expensive procedure, for which the parties gain freedom of choice and efficiency.
We recommend that if a dispute arises, contact a specialist who will help evaluate your situation, prepare a legal position, collect documents and participate in arbitration hearings.