Courts under council

The arbitration reform is close to its end. The Ministry of Justice has prepared drafts of documents establishing the procedure of granting the right to create a mediation court for non-commercial organizations, as well as the composition and competences of the expert council, upon recommendation of which the government will grant or deny this permission.
The main responsibility of the council is preparation of recommendations on granting or denying the right to exercise the functions of a mediation court to non-commercial organizations. For this purpose, the council will examine, among other things, the scale of activity, the organization’s reputation and influence, experience and required education of the arbitrators, regulations of the mediation court to be created. Besides, the council has a wide range of competences - from summarizing and distributing the best Russian and international practices in the field of arbitration, consideration of draft laws in this area, to assistance to the Ministry of Justice on assessment of violations committed by new mediation courts for which their activity may be terminated.
Incorporators or employees of commercial organizations (and affiliated legal entities) under which mediation courts are operating, as well as authorized persons of mediation courts who participate in administration of arbitration, cannot become council members. Partner of YUST Law Firm Alexander Bolomatov told Kommersant newspaper that in general the requirements to council member do not yet guarantee their impartiality: “it is necessary to look at the personal composition of the council, the dynamics of its decisions, ways of its development”.
Neither the law, nor the draft establishes the government’s obligation to strictly follow the council’s recommendations. Alexander Bolomatov thinks that serious grounds will be needed for a contrary decision of the government: “The council is a specialized authority to give recommendations, there is a certain extent of trust to it. A contrary decision may cause a serious administrative scandal”.

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