Russian High Court Invalidates Arbitration Clause for Tribunal's Lack of Independence

Russia's High Arbitrazh (Economic) Court overturned the decisions of three lower courts and ordered a Moscow trial court to hear the merits of a dispute that was covered by an arbitration clause in the parties' agreement. Under the arbitration clause, disputes were to be heard by a tribunal chaired by the respondent's general counsel, who was to appoint the other arbitrators. Also, the agreement required the claimant to pay a filing fee of ten percent of the amount of the claim. The High Arbitrazh Court held that because of the tribunal's lack of independence, and because the filing fee requirement could prevent claims from being heard, the arbitration clause violated public policy and was invalid.


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