The new Civil Procedural Code in Russia

The new version of the Civil Procedural Code (the "Code") came into force on 1 February 2003 and governs the proceedings of the courts of general jurisdiction, as distinct from the arbitration courts. The Code replaces the Soviet-era 1964 Civil Procedural Code and is part of the drive to liberalise the Russian justice system. It is designed to make the general courts a more open forum for the settling of disputes, including civil, labour, family, housing, land and environmental disputes.

Three sections of the Code will come into force only after 1 July 2003. These relate to appeals of those court decisions that have not yet come into effect and supervision (or review) of those that have. In the meantime, the provisions of the 1964 Code regarding these issues will remain in effect.

The Code deals specifically with foreign involvement in litigation in Russia. It sets out, in greater detail than the 1964 Code, the requirements for foreign individuals and legal entities to file a suit in a Russian court, the criteria for the enforcement in Russia of rulings by foreign courts and of arbitration awards, and the jurisdiction of the Russian courts over cases with an overseas party. The Code also identifies those cases in which the Russian courts will exercise exclusive jurisdiction (such as those involving real estate in Russia) and those in which jurisdiction can be chosen by the parties to an agreement. As in the 1964 Code, recognition in Russia of rulings and awards made by foreign courts is conditional upon such recognition being provided for in an international treaty to which Russia is a signatory.

The Code provides that business disputes involving individuals must now be brought before the arbitration courts, together with all other commercial disputes. This is intended to create some consistency of treatment and to avoid instances of the general courts interfering in the activities of companies (prohibiting general meetings or suspending management, for example) in a bid to protect the rights of individuals in a commercial dispute.

An attempt has also been made to streamline the structure of the courts. The Code eliminates the role of judge's assistant, which previously served a purely formal role and added little to the progress of a case. A single judge will now try cases, although three judges will hear certain, more complex, cases (as stipulated by the Code) and will also sit when requested by the parties involved.

In another important development, the Code sets new deadlines for the closing of cases. Judges must now make rulings within two months of a claim being brought. It is hoped that this will reduce the number of drawn-out trials. The Code also restricts the filing of claims based on previous rulings to a period of one year from the date of the original ruling. Previously, the term was not specified, which dramatically slowed down all court proceedings.

Government lawyers no longer have the right to become party to, or otherwise involved in, any case they choose, as was often the case in the past. Now, they may participate only in certain specified types of case, such as those involving an "indefinite group of people" (e.g. consumers' rights cases) and those involving state interests.

Previously, government lawyers were entitled to sit in on cases in order to protect so-called social interests. The latter term was quite vaguely defined in the 1964 Code, and gave government lawyers scope to become involved in court proceedings, in a number of cases even serving effectively as lobbyists for private interests.

The options open to government lawyers at the appeal stage have also been restricted. They are no longer entitled to file a claim or lodge an appeal in respect of a ruling that has taken effect, if they did not participate in the original proceedings.

The Code also secures the rights of witnesses not to incriminate themselves in civil suits, as specified in the Constitution of the Russian Federation and amongst other improvements is a provision allowing new kinds of evidence, such as audio and video materials, to be admitted.

In general, the Code lays a sound foundation for fairer court proceedings. It remains to be seen, however, whether the necessary systems will be in place on the ground for its provisions to be implemented fully. Until this becomes clear, it is difficult to say whether the Code will realise its potential and bring genuine improvements to the Russian civil justice system.

For further information please contact David Griston at [email protected] or on 00 7 095 2585000.