Third parties in the arbitration process, their rights and obligations

The arbitration process is regulated by the norms of the AIC. The legislation provides for certain procedures that are mandatory for implementation in the context of a particular case.

general characteristics

Participants in the proceedings can only perform those actions that are permitted by law. The normative acts clearly regulate:

1. Rules for the handling of applications.
2. Preparation and adoption of the case for production.
3. The order of consideration and resolution of the dispute.
4. Rules for the revision of the decisions.
5. The order of execution of decisions.

Relations arise between the parties that have a legal character. In the framework of arbitration proceedings, subjects receive equal opportunities to exercise their protection, present evidence, use legal aid, challenge decisions and so on.

Functions

Arbitration proceedings provide:

1. Protection of violated / disputed interests of entities that conduct entrepreneurial and other commercial activities. These include, but are not limited to, the MO, the state, the subjects, the institutions of power (regional, local) and other structures, as well as officials involved in economic relations.
2. Accessibility of justice for everyone.
3. Fair and open consideration within the statutory timeframe by an impartial and independent body.
4. Prevention of violations in the field of economic activity.
5. Strengthening the rule of law.
6. Creation of conditions for forming respectful attitude to the norms of law and legal proceedings.
7. Assistance in establishing and developing partnerships, ethics and customs in the economic interaction of entities.

Specificity

As a key task of arbitration proceedings is the provision of protection of violated or infringed interests of persons engaged in entrepreneurial and other economic activities. This function is specified in relation to each individual conflict and is implemented at all stages of production, but primarily in the decision of the first instance. This act, in essence, ensures the protection of the rights and interests of the direct participants in the dispute, third parties that make independent demands. With full satisfaction of the application, the plaintiff wins. According to the decision, his rights are restored, which were contested or violated by the respondent. If the application is rejected, the claimant, respectively, loses. In this case, the defendant's interests are restored in connection with the insolvency of the claims brought against him. In practice, partial satisfaction of the application is also possible.

Third parties in the arbitration process: the concept and types

They are referred to the same group of subjects as the defendant and the plaintiff. Their legal status is characterized by a certain interest in the decision on the case. Third parties in the process may or may not claim independent claims. Such a division indicates the existence of a legal and material interest as a result of the proceedings.

Symptoms

Third parties in the arbitration process and civil proceedings have a number of common features. First of all, they are united by the fact that they enter into proceedings initiated by other entities. The third person is not, therefore, the initiator of the consideration. Accordingly, their entry into the procedure of the proceedings is carried out after the appearance of the original material disputable relationship. Together with this, their presence is assumed in the conflict. According to experts, any third party has a certain interest. It is connected with the generally binding legal order.

An Important Moment

Actions that third parties can take in the arbitration process, their rights and obligations are established by the AIC. In particular, these entities can protect their own interests in the course of another proceeding, if they were not involved in the proceedings in the case. This procedure is due to the fact that the general validity of judicial decisions does not extend to legal possibilities, which were not examined. The prelude works only for those who attended the hearing. This rule is enshrined in Article 69 of the agrarian and industrial complex. Third parties in the arbitration process are involved in speeding up the proceedings, ensuring objectivity in the consideration of the dispute. The ruling, which the court makes in this case, promotes more complete protection of the interests of the subjects.

Characteristics of categories

The rights of third parties depend on whether or not they claim independent claims. In the first case, the incoming subject believes that he, and not the defendant or the plaintiff, is the owner of the subject matter of the dispute. He disputes the claims brought forward by the plaintiff. In this connection, the third party puts forward demands to this participant in the process. Subjects not claiming independent claims are on the side of the defendant or the plaintiff. Third parties in the arbitration process in this case are involved because the decision, which will ultimately be rendered, may affect their interests and legal capabilities within the framework of relations with a party to the conflict. This situation is due to various factors. Given the above, you can determine the following. Third parties in the arbitration process are the alleged subjects of material relations related to the subject matter of the dispute, entering the proceedings, which was initiated by the original plaintiff and the defendant, to protect their interests.

Grounds for attracting

The circumstances in which third parties are involved are of fundamental importance. Subjects of relevance to the subject matter of the dispute have the right to participate in the arbitration process. As it is a specific material object. The subject of the proceedings, in particular, may be copyrights, money and so on. The criterion by which subjects are brought to the dispute is the legal connection with this object. In accordance with Article 50 of the APC (Part 1), third parties in the arbitration process may appear before the decision is taken in the first instance. In this case, the subjects claiming their own claims enter the proceedings on their own initiative. Third parties in the arbitration process have the right to send a statement of claim drawn up in accordance with the requirements of the AIC.

Difficulties of differentiation

In practice, there are often difficulties in distinguishing between co-owners and third parties making their claims. When differentiating, the following circumstances must be taken into account. Third parties in the arbitration process always appear after the commencement of proceedings. Accordingly, the claims that they make are derived from other or similar circumstances, but different from the grounds by which the plaintiff is guided. The claimed claims completely or partially exclude those that are presented initially. The plaintiff and the subject who enters the production already begun, act as parties of different in their content relations, in spite of their identical nature. The co-defendants are present in one or several similar proceedings. The claims they state are not mutually exclusive.

Rights of third parties not making independent claims

The involvement of these entities is regulated by Article 51 of the APC. Under the provisions of the rule, third parties may participate in the proceedings on the initiative of one of the main parties (defendant or plaintiff) or independently. In this case, it should be noted a more indirect relationship with the original subjects. There are various reasons why third parties appear in the arbitration process. An example is the need to protect yourself against a likely recourse. It is also possible that the decision of a government agency acting as a defendant in favor of an organization (an outside entity) infringes on the interests of another company (the plaintiff). In some cases, the law directly establishes the need to involve third parties. In particular, according to Article 462 of the Civil Code, when a subject presents to the buyer of the goods a claim for seizure on circumstances that arose before the execution of the contract of sale, the latter should involve the seller in the proceedings. He, in turn, will act on the side of the acquirer. Obligations and rights of third parties are similar to those provided for the defendant and the plaintiff.

Basic principles

Lawyers, having analyzed the existing norms, propose a number of criteria that stipulate the admission of third parties to arbitration proceedings. The main principles include:

1. The presence of a probable third person of legal relations of a certain nature with any of the parties to the proceedings.
2. Relationship of the existing interaction with the dispute, which is considered in court.
3. The presence at the first instance of an understanding of the direct influence of the decision made on the rights and obligations of the person entering into production in relation to the defendant or the plaintiff.

Conclusion

The legislation provides for a specific procedure for involving third parties in the process. To enter the proceedings, the subject must send a relevant application (petition). The norms set the requirements for the drafting of the document. As in other procedural documents, the application / petition must contain all the requisites, describe the circumstances for which third party participation is required. Like the rest of the parties, this subject is notified of the time and place of the meeting.