A precedent-setting victory in recognition and enforcement proceedings in Russia

Motieka & Audzevičius Dispute Resolution team achieved yet another victory in Russia. Last September, the team managed to secure a quick victory for the client in the Kaunas Regional Court in the documentary proceeding related to the debt recovery. Recognition of this judgment in Russia raised unprecedented issues in the context of recognition and enforcement of foreign judgments:

• the decision, although it entered into force, retained the label of “preliminary” decision (Article 428 of the CCP), hence, the question arose as to whether such a preliminary decision could be recognized based on a Bilateral Agreement;
• the question arose as to the issue of proper notice to the non-participating party of the initiation of civil proceedings (see, for example, Article 810(1)(3) of the CCP). In serving the documents on the Debtor, the Lithuanian court followed Article 123(3) of the CCP, which does not require any proof of the actual service on the defendant. The question arose whether such Article 123(3) of the CCP service is in line with the provisions of the Bilateral Agreement.

Our Dispute Resolution team was able to convince the Russian court that the debtor was properly informed in accordance with the rules of civil procedure. The Russian court fully satisfied the client’s request and recognized and enforced the decision of the Lithuanian court in the territory of Russia.