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Representing a major telecommunication company at the International Commercial Arbitration Court at the Russian Federation Chamber of Commerce and Industry in a dispute with a counterparty

The lawyers in Pepeliaev Group's dispute resolution practice have successfully represented a major telecommunication company at the International Commercial Arbitration Court at the Russian Federation Chamber of Commerce and Industry. The case involved a dispute with a counterparty under a contract for services which was governed by German law. The claimant submitted a claim against the client to recover debt for international telecommunication services provided in an amount exceeding USD 895,000. The claimant’s claims were based on two agreements. Of these, one was governed by Russian law and contained a jurisdiction clause that all disputes should be submitted for consideration to the State Commercial Court of the city of Moscow. The second was governed by German law and, in the claimant’s opinion, it contained an arbitration clause that the parties had agreed on the International Commercial Arbitration Court at the Russian Federation Chamber of Commerce and Industry as the arbitration institute that would consider contractual disputes. Owing to the well-grounded position developed by our specialists the claimant reduced the amount of its claims to USD 648,000 to the extent based on the agreement with a jurisdiction clause, agreeing that the International Commercial Arbitration Court at the Russian Federation Chamber of Commerce and Industry lacked the jurisdiction to consider this part of the dispute. The client's position in essence was based on the fact that the claimant had missed the limitation period and that there were no grounds to reinstate, interrupt or suspend the period pursuant to the applicable provisions of the German Civil Code. The panel of the tribunal concluded that it had the competence to consider the part of the dispute asserted by the claimant; however, the panel agreed with our client’s arguments that the limitation period had been missed, and based on this fact the claims were dismissed. The project is interesting in terms of learning aspects of German legislation touched upon in the dispute.

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