Appellate Court Confirms the Validity of Asymmetric Dispute Resolution Clauses

March 25, 2015

Dechert lawyers representing a major international bank in court proceedings in a number of regions in southern Russia with respect to claims to recover a total of about US$300 million in loan funds from the guarantors of a Russian and Ukrainian agricultural holding company, prevailed on procedural grounds when the Fifteenth State Arbitrazh (Commercial) Appellate Court (Rostov-on-Don) ruled in their favor. On 4 March 2015, the Court of Appeals overturned a ruling previously issued by the first instance State Arbitrazh (Commercial) Court of the Rostov Region declining to hear the bank’s claims based on the lack of validity of an asymmetrical dispute resolution clause, and duly returned the case for retrial to the court of first instance. The appellate court held that the dispute resolution clause incorporated in the deeds of guarantee is valid from the point of view of English law.

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