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Judgment of the Plenary Session of the Supreme Commercial Court of 18 July 2014 № 50 “On Reconciliation of the Parties in Commercial Procedure”

For the most part this decree sets out and summarises scattered legislative rules  and the commercial courts case law. The controversial issues which the decree attempts to solve are the following:

- whether after the endorsement of an amicable agreement by a court it is possible to bring an additional suit flowing from the same legal relations (it is ruled that such is not possible);

- whether an amicable agreement to be endorsed by a court may contain provisions related to the demands that were presented but were not argued in the court (it is held that it may);

- whether litigation expenses may be imposed on the party which evaded actions aimed at the reconciliation of parties after the court suspending the hearings with the purpose of providing the parties with an opportunity for reconciliation (it is held that they may).

Besides it is pointed out that an amicable agreement between parties may be concluded between several plaintiffs and defendants, as well as between all of them. An amicable agreement  should be understood as a transaction, and therefore not only the procedural rules, but also  the rules of civil law on contracts, including those on the freedom of contracts, shall apply to it. However, the contestation of an amicable agreement, in spite of its being a transaction, is possible only by way of contesting the judicial act by which it has been endorsed.

According to the decree, a court may not endorse an amicable agreement in part, change or exclude certain terms from it; judges may only suggest to the parties to withdraw from the text the provisions which contradict the law or violate the rights of other persons.

Reconciliation with bodies of State power or local authorities is also possible – in cases regarding the contestation of non-normative legal acts, decisions  and actions, and also in the course of disputes on the recovery of mandatory payments and sanctions. The range of possibilities in such cases is rather wide: it may vary from an agreement of parties with regard to the facts of the case at hand to the complete recognition or withdrawal of demands. The conclusion of an amicable agreement is possible when considering tax disputes, as well as in bankruptcy cases. If the debtor refuses to perform it later on, creditors may present respective demands in common proceedings without the dissolution of the amicable agreement.

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