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Negotiations, mediation, litigation or arbitration: what to take into account in dispute resolution

April 2013 - Litigation & Dispute Resolution. Legal Developments by Pepeliaev Group.

More articles by this firm.

In a modern world, an important trend promoting ethical business practice is for civil society to regulate itself when resolving legal disputes. The increased burden on the courts and a growing number of business entities and disputes between them, have resulted in increased attention to different types of dispute resolution procedures. It would be helpful to highlight certain advantages and disadvantages of the relevant method for resolving a dispute in the economic field, as this may help to choose the method that is the most efficient in a specific situation.

Before the Russian Arbitration Procedure Code (the "APC") entered into force in 2002, the Russian legal system only provided for two types of dispute resolution procedure: negotiation or arbitration. The APC provided an option for the parties to file a petition to postpone the proceedings if the parties had turned to a mediator to resolve their dispute. However, only after Federal Law No. 193-FZ On alternative procedure for resolving disputes with an intermediary (mediation procedure) (the "Mediation Law") dated 27 July 2010 entered into force did it become genuinely possible to talk about a new dispute resolution method that had appeared in the Russian legal system.

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About Author

Julia graduated with honours from the Department of Law, Lomonosov Moscow State University (PhD in Law).

Her main focus is entrepreneurial legislation being applied in practice in all areas of business, including commodity supplies, power supplies, contractor relationship, storage of goods, disputes over property, lender-borrower relationship and matters relating to the legal support in bankruptcy proceedings. She has an extensive track record of resolving corporate disputes over reorganisation and liquidation of legal entities, ownership of shares and participatory interest in the issued capital, invalidation of legal entities’ transactions and other.

Julia has more than 9 years of experience as a judge of Kaluga Region State Commercial (‘Arbitration’) Court and more than 9 years of experience as an attorney-at-law.

She is the author of many articles and publications on insolvency (bankruptcy).

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About Pepeliaev Group

With more than a decade under its belt and over 180 attorneys based in Moscow and Saint Petersburg, Pepeliaev Group has cemented its position as the leading Russian law firm, which renders high quality legal services in Russia, the CIS and abroad. Our key services include tax advice and tax litigation; corporate; commercial/M&A; antimonopoly regulation; land, real estate and construction; dispute resolution and mediation; intellectual property and trademarks; employment and migration law; banking; customs and foreign trade regulation; administrative and criminal defence for businesses; telecommunications services; pharmaceuticals and healthcare; and environmental protection. The firm has more than 1500 clients in different industries, most of which are multinational corporations implementing long-term investment projects in Russia. In 2012 Pepeliaev Group was the recipient of The Lawyer’s Law Firm of the Year: Russia and the CIS award. Address: Krasnopresnenskaya nab. 12, Entrance 7, World Trade Center-II, Moscow 123610, Russia Tel.: + 7 495 967 0007; Fax: + 7 495 967 0008; website: www.pgplaw.ru