Dispute resolution procedures are an important part of any country’s legal system, and Belarus is no exception. In today’s world, where business and personal relationships are becoming increasingly complex, effective dispute-resolution mechanisms are particularly important for ensuring justice, law and order.
In this article, we will look at the main dispute resolution methods in Belarus, including judicial and extrajudicial methods, the specifics of arbitration courts, the International Arbitration Court at the Belarusian Chamber of Commerce and Industry, as well as the role of mediation as an alternative way to reach a compromise. Understanding these mechanisms will allow individuals and companies to take a more informed approach to conflict resolution and protect their rights, creating a more stable and predictable legal environment. And our lawyers and attorneys are always ready to clarify any questions.
Mandatory Pre-Trial Dispute Resolution Procedure
The mandatory pre-trial dispute resolution procedure for disputes between companies and (or) individual entrepreneurs is established in Belarus. The essence of the pre-trial procedure is that to resolve a dispute, you need to choose one of the ways:
- Send a claim to the opponent (this is a written offer to voluntarily settle the dispute).
- Use mediation. Mediation is a negotiation involving a mediator and the parties to a dispute.
- Use another method determined by the state or an agreement between the opponents.
Sometimes, the parties waive the pre-trial dispute resolution procedure in a contract. However, there are certain categories of disputes in which it is impossible to waive the mandatory claim procedure. These are disputes related to cargo transportation and the use of toll roads. For questions related to the formulation of the terms of the agreement, including dispute resolution terms, we recommend that you consult with our experienced lawyer.
What is the Essence of the Pre-Trial Claim Procedure for Dispute Resolution
The claim is made by the party to the dispute who believes that its interests have been affected by the actions or omissions of the claim’s addressee. The state has established special requirements for the claim’s content and direction.
In particular, the claim should formulate a claim against the debtor and propose a deadline and procedure for its execution.
In the claim, you can offer the debtor:
- Resolve a dispute involving a mediator.
- To conclude an arbitration agreement.
- Appoint a conciliation procedure when applying to the economic court.
- Choose the type of legal proceedings.
Copies of documents confirming the claims are attached to the claim.
The deadline for responding to the claim has been determined: one month from the date of its receipt. However, another term may be specified in the contract under which the dispute arose.
The claim is sent to the organisation’s location or its branch or representative office, depending on which of these institutions became the source of the claim. If the debtor is an individual entrepreneur, the claim should be sent to his residence or location. It is also possible to send a claim to the debtor’s place of work if this person is not present at the place of residence.
In the terms of the agreement, the parties may agree on the possibility of sending claims by e-mail.
If there is no response to the claim within a certain period, you can file a claim with the economic court or in the order of the writ proceedings.
If you receive a written refusal to satisfy the requirements, you can apply to the court immediately after receiving the refusal.
A package of documents and a statement of claim or an application for the initiation of writ proceedings should be sent to the court (when there are grounds for this). Our experienced lawyer will advise you on the issues of drafting a claim, responding to a claim, and going to court. He will draw up and send the necessary documents to represent your interests in court if you wish.
What is Mediation
A mediator is a person who has a certificate issued by the Ministry of Justice of the Republic of Belarus. If you want to resolve the dispute with the help of a mediator, you must send an appropriate proposal to the other party. Our experts will help you choose the right mediator from the state Register of Mediators and prepare such a proposal.
Mediation aims to create a dialogue and find a solution acceptable to both sides of the dispute. The parties set the mediation period independently. However, this period should not exceed six months from the date the mediation agreement is concluded.
The mediation process can be conducted in Russian or Belarusian, as well as in any other language, if an interpreter is available.
During the mediation process, the parties formulate a list of controversial issues, propose possible solutions, and discuss them. The mediator does not offer dispute resolution options but controls the course of negotiations.
All data obtained during mediation is confidential.
When the parties agree on the dispute resolution terms, they sign a mediation agreement. This agreement does not preclude resolving the conflict in court.
When is it Possible Not to Use the Pre-Trial Dispute Resolution Procedure
The pre-trial dispute resolution procedure is not used to resolve corporate disputes (for example, changing a business entity’s membership or invalidating a decision) or disputes about invalidating a transaction.
In disputes involving individuals and between individuals, the pre-trial conflict resolution process is not always applied.
Also, government agencies and officials should not adhere to the pre-trial dispute resolution procedure when they send documents to the court to protect the interests of others.
If you have any questions about the need to comply with the pre-trial dispute resolution procedure, we recommend that you consult our experienced conflict resolution lawyer.
Judicial Dispute Resolution Procedure
A system of economic courts has been established in Belarus to resolve disputes between business entities and other organizations. Courts of general jurisdiction consider disputes involving individuals.
The court has several procedures for resolving disputes. The type of procedure depends on whether the debtor acknowledges the claims or denies them. When the debtor has not responded to the claim or acknowledged the claims but has not fulfilled them, the dispute can be resolved through writ proceedings or, in other cases, a lawsuit.
Before submitting the documents to the court, a certain amount must be paid to the budget for the court’s consideration of the dispute. This amount is called the “state fee.” The state establishes the state fee rates and the procedure for calculating them.
Writ Proceedings
Writ proceedings are a simplified dispute resolution procedure in which the court hears the case without trial and summons the parties to court based on documents submitted by the creditor (recoverer).
In the economic court, in the order of writ proceedings, the court considers indisputable claims for the recovery of money, property, or foreclosure on the debtor’s property.
The debtor has the opportunity to respond to the claimant’s application within a certain period of time after receiving the court ruling on the commencement of writ proceedings. The debtor presents his objections to the recoverer’s claims in the review. When the court receives such a review, it refuses to satisfy the claimant’s claims.
Otherwise, based on the results of consideration of the documents, the court issues a ruling on the court order. This executive document can be executed through a system of enforcement agencies.
The debtor may appeal against such a ruling.
The term of consideration of the case in the economic court in the order of writ proceedings is no more than 20 days from the date of receipt of statement on the initiation of writ proceedings from the recoverer to the court. We recommend contacting our experienced lawyers for questions related to applying to the court for the initiation of writ proceedings, drafting such a statement, revoking the debtor, and appealing the court ruling.
What Issues are Not Considered in the Order of Writ Proceedings in the Economic Court
The following requirements are not considered in the order proceedings:
- Related to the return of immovable property to its rightful owner.
- Related to fulfilling the guarantee obligation (except for the bank guarantee).
- Related to the performance of a claim assignment agreement or debt transfer (except in cases where the debtor acknowledges the debt in writing).
- The requirements for which debts are collected by an executive inscription by a notary (these are indisputable requirements, the list established by the state).
Writ Proceedings in Court Involving Individuals
In an expedited order procedure (without calling the parties), the court considers disputes involving individuals about the recovery of money and movable property in the following cases:
- Under notarial agreements (except for a notarized transaction, based on which an obligation to pay money arises).
- On the recovery of alimony for minor children.
- On the recovery of expenses incurred by the state for the maintenance of children on state support from a person obliged to reimburse such expenses, whose place of residence is known.
- According to the requirements of transactions executed in writing (not notarial transactions).
The court considers the claimant’s application within three days. The debtor has 10 days after receiving the ruling on the court order to inform the court of his objections. In this case, the court will cancel the court order. Otherwise, the order is executed like the economic court’s.
Claim Proceedings in the Courts
Claim proceedings in court are usually initiated by the recoverer, who is referred to as the “plaintiff” in this process. The debtor, in turn, is called the “defendant”. The court considers disputes through claim proceedings where the debtor does not agree and disputes the creditor’s claims.
A statement of claim must be filed with the court within the limitation period, which is three years. However, for some requirements, both shorter and longer deadlines are provided. For example, the limitation period for claims related to a cargo transportation contract is one year, and for claims from a freight forwarding contract, it is 10 months. According to the requirements of the loan agreements, it is 5 years.
Claim proceedings in the Economic Court
Generally, a statement of claim is filed with the economic court at the defendant’s location or residence. In the Republic of Belarus, the economic court of the corresponding region operates in each region, and the Economic Court of Minsk operates in Minsk.
There are certain requirements for the statement of claim. The plaintiff has the right to combine several claims in one statement of claim if they are interrelated. When making property claims (such as the recovery of money, property, etc.), it is necessary to calculate the price of the claim.
As a general rule, the court hears a dispute for no longer than two months. Sometimes, the court may extend the review period up to four months. Disputes involving foreigners who are outside Belarus are considered within seven months (another period may be stipulated in an international agreement). The maximum consideration period for such cases is one year.
The decision of the Economic Court becomes effective in 15 working days. It can be appealed before it comes into force.
We recommend contacting our experienced lawyers for questions about filing a claim, participating in court, or appealing court decisions.
Claim Proceedings in Court Involving Individuals
Some state requirements regulate the consideration of disputes in courts involving individuals in Belarus. This process aims to protect citizens’ rights and legitimate interests by reviewing and resolving disputes arising in various areas of civil law relations.
The Procedure for Applying to the Court
To initiate legal proceedings, an individual must file a statement of claim with a court of general jurisdiction at the defendant’s location or, in certain cases, at the plaintiff’s location. The statement of claim must contain the following information:
- The name of the court to which the application is being submitted.
- Personal data of the plaintiff and the defendant (full name, address, contact information).
- The essence of the requirements and the justification of their validity.
- Evidence that confirms the circumstances stated in the claim.
- The list of attached documents.
Before filing a claim with the court, you must pay a state fee at the rates set by the state.
Judicial Proceedings
After filing a statement of claim, the court sets a date for a preliminary court hearing, at which the parties must present their evidence and arguments. The court may order an expert examination or summon witnesses to establish the factual circumstances of the case. The case is usually considered for no longer than two months, but the court may consider cases involving foreigners for up to one year.
The parties may participate in the judicial proceedings personally or through their representatives. The legislation also allows for the peaceful settlement of a dispute at any stage of the judicial process, contributing to a more expeditious resolution of the conflict. Our experienced lawyer can represent your interests in court.
Execution of a Court Decision
After the court decides, it becomes legally binding, and the defendant must comply voluntarily within a certain period. If the defendant does not comply voluntarily, the plaintiff can apply to the bailiff service to enforce the decision.
Arbitration Court
The arbitration court system in Belarus is an alternative dispute resolution method that provides a more flexible and faster approach to litigation compared to traditional courts. Arbitration courts operate based on an agreement between the parties who agree to submit their dispute to the arbitrators for resolution. These permanent non-governmental courts exist as non-profit organizations or as divisions of legal entities.
The registers of arbitration courts established in these forms, as well as the register of arbitrators, are posted on the Ministry of Justice of the Republic of Belarus website.
Arbitration courts may also be established to resolve certain disputes. For this purpose, the parties to the dispute conclude an arbitration agreement. Such a court is not permanent and ceases to exist after resolving the dispute.
Arbitrators are paid for their work. The judicial process in the arbitration court is called “arbitration proceedings.”
The term of dispute resolution in the arbitration court is not more than three months from the date the dispute is first considered. The parties may specify a longer period in the arbitration agreement.
What Disputes are Resolved by the Arbitration Court
The arbitration court resolves any disputes between the parties who have concluded the arbitration agreement, except for disputes related to the rights and interests of persons not parties to the arbitration agreement and disputes that cannot be considered in the arbitration court.
Main Features of Arbitration Courts
1. Consent of the parties: To apply to the arbitration court, an agreement between the parties on transferring the dispute to the arbitration court is required.
2. Confidentiality: Arbitration procedures are generally confidential, which allows for privacy and protection of the parties’ trade secrets.
3. Flexibility of procedures: Arbitration courts can establish their own rules and procedures, allowing the parties to choose the most convenient business terms for them.
4. Speeding up the proceedings: The dispute resolution procedure in arbitration courts generally takes less time than that in state courts.
5. Independence of arbitrators: Arbitrators who are called upon to resolve a dispute act independently and impartially, guided only by the terms of the contract and the laws, if provided for.
The Order of Work of Arbitration Courts
The state regulates the work of arbitration courts in Belarus. They can be created in business associations or operate independently. Courts consider commercial and some types of civil disputes, while some areas may be excluded from their jurisdiction. If you have any questions about dispute resolution in arbitration courts, we recommend you consult our experienced lawyer.
International Arbitration Court at the Belarusian Chamber of Commerce and Industry
The International Arbitration Court at the Belarusian Chamber of Commerce and Industry (IAC) and the International Arbitration Court “Chamber of Arbitrators at the Union of Lawyers” have been established in Belarus. The IAC at the Belarusian Chamber of Commerce and Industry examines disputes between Belarusian companies and foreign business partners.
When the IAU considers disputes at the Belarusian Chamber of Commerce and Industry
The parties to a foreign economic contract may agree not to apply to the State Economic Court in case of a dispute but to submit the dispute for consideration to the IAC at the Belarusian Chamber of Commerce and Industry. Usually, such an agreement is reached at the stage of concluding a foreign economic contract.
Features of the IAU Dispute Resolution at the Belarusian Chamber of Commerce and Industry
There is an arbitration fee for dispute resolution. The fee rates range from 700 euros to 5,000 euros. Also, when filing a claim with this court, you must pay a registration fee credited to the arbitration fee.
The deadline for the IAC at the Belarusian Chamber of Commerce and Industry to consider the dispute is 6 months after the formation of the arbitrators’ composition. The court’s decision is executed in the same manner as the courts of general jurisdiction.
If you have any questions about the dispute being considered by the IAC at the Belarusian Chamber of Commerce and Industry, we recommend that you consult with our experienced lawyer for disputes involving foreign entities.
Conclusion
Many dispute resolution procedures in Belarus allow the parties to choose the most appropriate option. However, the system of bodies that resolve disputes may seem complicated and unusual since different courts consider disputes involving individuals and between business entities. To comply with all the nuances, we recommend contacting our experienced lawyers. They will provide qualified advice and help draft the necessary documents. Still, they will also be able to represent your interests in courts and government agencies, ensuring maximum protection of your rights and legitimate interests.
Contact us
If you have any questions related to dispute resolution in Belarus, we will be happy to help! Our long-term experience will help you choose a lawyer, to represent your interests in courts and government agencies.
- +37529142-27-19 (WhatsApp, Viber, Telegram);
- info@ambylegal.by.
