Arbitration clause with unilateral option to litigate held to be invalid by Russian Court | White & Case LLP International Law Firm, Global Law Practice
Arbitration clause with unilateral option to litigate held to be invalid by Russian Court

Arbitration clause with unilateral option to litigate held to be invalid by Russian Court

The Russian Supreme Commercial Court has held that an arbitration clause granting one party a unilateral option to litigate is invalid under Russian law. In its recent decision in CJSC Russian Telephone Company v. Sony Ericsson Mobile Telecommunications Rus LLC, the Court stated that a clause granting a unilateral option to litigate was invalid because it would unfairly disadvantage one party. The decision means that there is a risk of Russian litigation for the many foreign parties who have been using such clauses in their deals for a number of years and that parties should carefully evaluate the use of such clauses going forward.

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