A Principal of the KIAP Law Firm participated in the proceedings in an Austrian court on the defendant's side. Following consideration of the case, the court declined to grant the plaintiff's requests, awarding the Principal of the KIAP Law Firm court costs totaling more than RUB 3.6 million. The KIAP Law Firm's attorneys were tasked with ensuring that the Austrian court's ruling be recognized and enforced on Russian soil. The fact that the debtor had been declared bankrupt and that a property sale process had been initiated regarding their belongings complicated the situation. Furthermore, there were no international agreements governing the mutual recognition and enforcement of court rulings between Russia and Austria. The arbitration court dropped the case after the first round of consideration, indicating that the conditions for the Austrian court's ruling's recognition, enforcement, and inclusion in the creditors' register were of a current nature and were subject to consideration outside the context of the bankruptcy case.
The KIAP Law Firm's attorneys were able to overturn the arbitration court's decision to drop the case by submitting a cassation asserting that the arbitration court's decision had no legal effect on the territory of the Russian Federation prior to the procedure for recognition and enforcement of a foreign court ruling; therefore, the court was unable to assess the requirements contained therein legally. As a result, the court had to first decide whether to recognise and enforce a foreign ruling before determining the claims' legality.
At the new round of case consideration, the KIAP Law Firm's attorneys ensured the recognition and enforcement of the Austrian court's ruling. The arbitration court concurred with the argument that the mere absence of a bilateral agreement did not constitute grounds for refusing to recognize and enforce a foreign court's ruling that had become enforceable. Out of reciprocity and international courtesy, which are generally accepted principles of international law, in this case the ruling of a foreign court may be recognized and enforced on Russian soil.
To read the court’s ruling, follow the link.