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Judgment of the Presidium of the Supreme Commercial Court of 7 June 2012 № 14592/11 in the case The company “TGK-9” vs The Perm Regional Branch of the Federal Antitrust Service

Point of law: whether a third person, that is, a participant of the litigation who does not present separate demands as to the subject matter of the dispute, may recover litigation expenses?

Alternative attitudes: 1) it is inadmissible because under part 1 of Art 110 of the Commercial Procedure Code litigation expenses shall be reimbursed only to those persons in whose favour the court decision has been delivered, and the latter may not affect the rights and duties of third persons with regard to any party of the dispute, because nothing is recovered from or awarded to them; or 2) it follows from systematic interpretation of relevant rules of the Commercial Procedure Code that litigation expenses for remunerating a court representative borne by third persons in connection with their appeals against court decisions (in particular, in connection with submission of an appeal) may be reimbursed to a third person who chose an administrative, not a judicial, way of protecting his violated right, and took part in the case on the side of the administrative body.

Ratio decidendi: the second approach is legally correct.

Practical consequences: the Judgment says that prior court decisions in analogous cases if inconsistent with this interpretation may be reversed in the procedure and within the limits envisaged by Art 311 of the Commercial Procedure Code.

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All court decisions in the case

 

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