IASP Court of Arbitration

International Association of Space Activities Participants was created in the end of 2005 year for coordination of Association members’ business activity, protection of their rights and representation of their interests in state and other authorities, including international ones. At that, naturally, certain terms of interaction are settled, mechanisms and rules are defined, and their different handling may lead to difficulties and disputes; it is often better to settle the disputes in the Court of Arbitration.

But the functions of the Court of Arbitration are not limited by that only. The most important function of IASP Court of Arbitration will be the settlement of disputes connected with the execution of the Federal Space Program of Russian Federation, State Defense Order and international agreements.

Why does the Association consider expedient exactly this method of dispute settlement between enterprises and organizations of Space and Rocket industry?

In preset-day conditions the procedure of the Court of Arbitration is necessary and effective form of right and interest protection of enterprises. In many countries of the world with rich traditions of legal regulation of business activity, the businessmen, not by accident, prefer to settle their disputes in trade (commercial) courts, not affiliated in state court system, and by their nature, exactly, representing the Court of Arbitration.

Courts of Arbitration are widely used nowadays in Russian law enforcement for settling different economical disputes. Protection of violated or contested civil right is carried out, in compliance with jurisdiction defined by procedural legislation, by the Court, Tribunal of Arbitration or Court of Arbitration (clause 2 of the 11th article of the Civil Code of Russian Federation).

Arbitration trial is based on the principles of protection interests of particular participants of property transaction, competitiveness of parties, quickness and economy of examination. Under the authority of the Court of Arbitration is settling the disputes arising, mainly, in connection with non-execution or improper execution of treaty obligations between commercial organizations as well as between other juridical persons, registered in Russian Federation and other countries. Court of Arbitration handles economical disputes only, reckoning among reference of commercial courts. It is not a secret that State Courts are abandoned to constant increasing of workload recently. For example, the number of handled in State Arbitration Court disputes is increasing on 20–30 per cent annually.

This situation causes hurdles, influences the quality of accepted juridical acts, and sometimes casts doubts on reality of access of public justice.

For example, in case of handling the disputes in Tribunal of Arbitration the period of time from the moment of acceptance of a suit and to the moment of possibility of execution maintenance will take about nine months (when the case will be handled by all the three court instances — the first, the appeal and cassational). The same procedure in the Court of Arbitration will not take more than two or three months. The dispute is settled by the elected parties or appointed composition of a court in a single instance.

The Court of Arbitration has not dependency relation with any State bodies; however, it is admitted and supplied by the state as law enforcement body, executing justice. The procedure of Arbitration handling allows competitors to chose judge the qualification and experience of whom they respect, guarantees them protection of rights, including commercial secret, provides wide possibilities for achieving different forms of compromises: amicable agreement, refusal of penalty recovery from the respondent (on the nod of parties) and etc. The most important source of the made by the Arbitration Court decisions is the contracts (of the parties) and trade (commercial) common practice.

A compulsory condition for initiation of proceedings in a case in the Court of Arbitration is agreement of the parties themselves. There’s no need in precedent order of adjustment of disputes for accession in the Court of Arbitration (pre-arbitration procedure of disputes examination).

In the process of arbitration the parties to dispute are absolutely equal. At that each party is to prove the circumstances it refers to. The Court of Arbitration has the right, but not obliged to require compulsory proofs and, basing on adversarial principle could make a resolution on materials given by the parties.

The procedure of the Court of Arbitration is exercised orally but with record-keeping made to order of the parties, and is based on the represented by the parties written evidentiary materials (though it doesn’t exclude the listening of experts and witnesses).The third persons are admitted to the process only by consent of the parties, that is why the handling is considered closed and guarantee to the parties observance of commercial secret. Relations of confidentiality between parties and judges create conditions for the full and comprehensive settlement of the dispute. More over, publicity in State Courts does not always contribute to keeping commercial secret or other information, divulgation of which may course damage to juridical persons and businessmen.

So, what are the peculiarities of the IASP Court of Arbitration? In compliance with the advanced regulation of the IASP Court of Arbitration the handling of a certain dispute should not take more than two months with the moment of formation of the composition of a court (or appointment of a single judge). At that the members of association are exempted from fees on accessing to the court, for other parties of the Court of Arbitration the fee is lower than the state duty in commercial court.

Resolution of the Court of Arbitration under its authorities excludes the possibility of accessing to the State Commercial Court with the plea to the same matter and circumstances. It is of obligatory character and is for voluntary execution either in the period settled in the resolution or in short notice. On default of the resolution of the Court of Arbitration by a defendant voluntary, the complainant receives an executive document, sentenced to the enforceable execution by the segregates and the writ of execution of the proceedings relating to the enforcement of judgments is given by the commercial court on the territory of which the court of Arbitration is based regardless determined jurisdiction over a dispute. Thus, the resolutions of the Court of Arbitration in its legal effect do not hold out the common court resolution.

In settling the dispute the Russian legislation is applied (if the parties have not agreed the application of the other country legislation or international agreement or conflict rule do not transmit to it), but among others taking into account in settling the dispute is the contest of the applicable agreement.

All that serves to provide the realization of the principles of fastness and efficiency in settling the disputes in the Court of Arbitration.

The General Meeting of the International Organization of Space Activities Participants in March, 24 2006 considered the question about the necessity and expediency of formation of the constant Court of Arbitration in the Association with the purpose of protection rights and interests of the association members in settling economical disputes, arising in executing of space activity, and in compliance with the Federal Low from 07.24.2002. #102-FL “About the Courts of Arbitration in Russian Federation”.