Third parties in the arbitration process, their rights and obligations

The arbitration process is regulated by the rules of the agro-industrial complex. The legislation provides for certain procedures that are required to be performed as part of the consideration of a specific case.

general characteristics

Participants in the proceedings may only perform actions that are permitted by law. The regulations clearly govern:

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

Between the parties there are relations with a legal nature. In the framework of arbitration proceedings, subjects receive equal opportunities to exercise their defense, present evidence, use legal assistance, challenge decisions and so on.

Functions

Arbitration proceedings provide:

1. Protection of violated / disputed interests of entities conducting entrepreneurial and other commercial activities. They include, among others, municipalities, states, entities, government institutions (regional, local) and other structures, as well as officials involved in economic relations.
2. Accessibility of justice for everyone.
3. A fair and open review within the time frame established by law 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 the formation of a respectful attitude to the rule of law and legal proceedings.
7. Assistance in the establishment and development of partnerships, ethics and customs in the economic interaction of entities.

Specificity

The key task of arbitration proceedings is to ensure the protection of violated or impaired 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, of third parties that make independent claims. If the application is fully satisfied, the plaintiff wins the case. According to the decision, his rights are restored, which were challenged or violated by the defendant. If the application is refused, the plaintiff, accordingly, loses. In this case, the interests of the defendant 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: concept and types

They belong to the same group of subjects as the defendant and the plaintiff. Their legal status is characterized by the presence of a certain interest in the decision on the case. Third parties in the process may or may not state independent claims. This separation indicates the presence of legal and material interest in the proceedings.

Signs

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 the proceedings, which have begun by other actors. The third party is therefore not the initiator of the review. Accordingly, their entry into the proceedings is carried out after the initial material controversial relationship. Along with this, their presence is assumed in the conflict. According to experts, any third party has a certain interest. It is associated with a binding judgment.

Important point

Actions that may be performed by third parties in the arbitration process, their rights and obligations are established by the agro-industrial complex. In particular, these entities can protect their own interests in the course of another proceeding if they were not brought to trial. This procedure is due to the fact that the binding nature of court decisions does not extend to legal opportunities that have not been considered. Prejudice applies only to those who attended the hearing. This rule is enshrined in article 69 of the AIC. Third parties in the arbitration process are involved to expedite the proceedings, to ensure objectivity in the consideration of the dispute. The decision made by the court in this case helps to more fully protect the interests of the subjects.

Category Characteristics

The rights of third parties depend on whether or not they state independent claims. In the first case, the incoming entity considers that he, and not the defendant or the plaintiff, is the owner of the subject of the dispute. He disputes the claims made by the plaintiff. In this regard, a third party makes demands on this particular 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 be ultimately issued, may affect their interests and legal capabilities in the framework of relations with one or another party to the conflict. This situation is determined by various factors. Given the above, we can determine the following. Third parties in the arbitration process are the alleged subjects of material relations related to the subject of the dispute, entering into proceedings that were initiated by the original plaintiff and defendant to protect their interests.

Reasons to attract

Of fundamental importance are the circumstances in accordance with which third parties are involved. Entities related to the subject of the dispute have the right to participate in the arbitration process. As it acts a specific material object. The subject of the proceedings, in particular, may be copyright, money, etc. The criterion by which subjects are brought to dispute is the legal connection with this object. In accordance with Article 50 of the agro-industrial complex (part 1), third parties in the arbitration process may appear before a decision is made in the first instance. At the same time, the entities 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 agro-industrial complex.

Difficulties of differentiation

In practice, difficulties often arise in distinguishing between co-applicants and third parties who make their claims. When differentiating, the following circumstances must be taken into account. Third parties in the arbitration process always appear after the start of proceedings. Accordingly, the claims that they put forward arise from other or similar circumstances, but different from the grounds on which the plaintiff is guided. Claims made by them wholly or partially exclude those that are submitted initially. The plaintiff and the subject who enters into the proceedings already begun appear as parties to relations of different content, despite their identical nature. Co-defendants are present in one or more similar proceedings. The claims they state are not mutually exclusive.

Rights of third parties that do not make independent claims

The involvement of these entities is regulated by 51 articles of the agro-industrial complex. According to the provisions of the norm, third parties can take part in the proceedings on the initiative of one of the main parties (defendant or plaintiff) or independently. In this case, their more indirect relationship with the original subjects should be noted. There are various reasons why third parties appear in the arbitration process. An example is the need to defend against a probable recourse requirement. A situation is also possible in which a decision of a state agency acting as a defendant in favor of an organization (an external entity) infringes on the interests of another company (plaintiff). In some cases, the law directly establishes the need for third parties. In particular, under Article 462 of the Civil Code, when an entity filed a claim against the buyer for goods for seizure due to 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. The obligations and rights of third parties are similar to those provided for the defendant and the plaintiff.

Basic principles

Having analyzed the existing norms, lawyers propose a number of criteria that determine the admission of third parties to arbitration proceedings. The main principles include:

1. The presence of a probable third party of a relationship of a certain nature with any of the parties to the proceedings.
2. The relationship of the existing interaction with the dispute, which is being considered in court.
3. The fact that the first instance has an understanding of the direct impact of the decision on the rights and obligations of the entity entering into proceedings with respect to the defendant or 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 corresponding application (application). The rules establish the requirements for the preparation of the document. As in other procedural papers, the application / application must contain all the details, describe the circumstances in which the participation of a third party is necessary. Like other parties, this entity receives a notification of the time and place of the meeting.