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Rosseti is tired of courts
09.03.2016
Rosseti and their affiliate, Federal Network Company, that regularly have conflicts on management issues, are trying to negotiate the dispute resolution procedure. The holding intends to undertake mediation functions in the disputes between affiliate companies and transfer the settlement of unresolved conflicts from arbitration to mediation court. Such procedure would allow to remove the conflicts from the public field, but the board of directors of Federal Network Company is not ready yet to apply it to all contracts and wants to test it on pilot disputes.
A mediator allows to bring the parties to any kind of agreement, with or without compensation, the procedure is not governed in any way and not public, as opposed to arbitration court, partner of YUST Law Firm Alexander Bolomatov explained to Kommersant newspaper. In his opinion, Russian companies will use this instrument only if an obligation is imposed on them to settle disputes through mediation at the first stage. “However, many conflicts will be impossible to resolve at the corporate level, and a multi-level system will only result in waste of time”, the lawyer added. “The holding most likely has the purpose of eliminating conflicts between its affiliates from the public field.”
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Rosseti and their affiliate, Federal Network Company, that regularly have conflicts on management issues, are trying to negotiate the dispute resolution procedure. The holding intends to undertake mediation functions in the disputes between affiliate companies and transfer the settlement of unresolved conflicts from arbitration to mediation court. Such procedure would allow to remove the conflicts from the public field, but the board of directors of Federal Network Company is not ready yet to apply it to all contracts and wants to test it on pilot disputes. A mediator allows to bring the parties to any kind of agreement, with or without compensation, the procedure is not governed in any way and not public, as opposed to arbitration court, partner of YUST Law Firm Alexander Bolomatov explained to Kommersant newspaper. In his opinion, Russian companies will use this instrument only if an obligation is imposed on them to settle disputes through mediation at the first stage. “However, many conflicts will be impossible to resolve at the corporate level, and a multi-level system will only result in waste of time”, the lawyer added. “The holding most likely has the purpose of eliminating conflicts between its affiliates from the public field.”
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