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Company / Laws

Contractual jurisdiction will be cancelled

Legal aid 03.10.2017 at 16:18

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The Supreme court of the Russian Federation proposes extensive reform of the procedural legislation of the Russian Federation, including civil-procedural and arbitration-procedural legislation of the Russian Federation. The draft Federal law "On amendments to the Civil procedural code of the Russian Federation, the Arbitration remedial code of the Russian Federation, Code of administrative procedure of the Russian Federation and certain legislative acts of the Russian Federation was considered 03.10.2017 G. at the meeting of the Plenum of the Supreme court. Following consideration of the draft bill, the Draft Federal law is submitted to the State Duma of the Federal Assembly of the Russian Federation for consideration.

According to article 32 of GPK of the Russian Federation the parties may by agreement among themselves change territorial jurisdiction for the case before making his court to its production. As follows from paragraph 13 of the Resolution of Plenum of the Supreme Court of 27.12.2016, No. 62 "On some issues of application by courts of provisions of the Civil procedure code of the Russian Federation and the Arbitration procedural code of the Russian Federation on simplified proceedings" in the application for issuance of a writ shall apply the rules of General territorial jurisdiction. Subject to the provisions of chapters 3 and 11 of the code of civil procedure of the Russian Federation, section 2, Chapter 4, Chapter 29.1 of the APC when applying for issuance of a writ shall apply the rules of jurisdiction at the choice of the plaintiff in the adversary proceedings (article 29 of the code of civil procedure of the Russian Federation, article 36 of the APC RF) and the Contracting jurisdiction (article 32 of GPK of the Russian Federation, article 37 of the APC RF).

Thus, when submitting to a magistrate an application for issuance of a writ to recover the debt under the loan agreement can be applied the Rules of contractual jurisdiction. At the conclusion of the credit agreement or the loan agreement, the credit institution shall include the loan agreement a Rule about Contracting jurisdiction on the dispute at the location of the Bank. In this case the borrower is unable to amend the credit agreement, as to their legal nature, the loan agreement for the physical person (consumer) is a contract of adhesion. The client either agrees with the proposed draft of the credit agreement or loan agreement, or does not agree.

In the case of indebtedness under the credit agreement (loan agreement), which has established contractual jurisdiction at the location of the Bank, the Bank shall submit to a magistrate an application for issuance of a court order for the place of residence or place of location of the branch of the Bank. As a rule, the Bank's legal address is Moscow, so the Bank filed an application for issuance of a writ to a magistrate in Moscow. Geographically, the debtor may be very far from Moscow, therefore in time it is impossible to apply an application for cancelling the court order. All this causes delays in the cancellation of the court order. In addition, the Rules of contractual jurisdiction increases the burden on judges of Moscow and Moscow region.

In connection with the foregoing, the Draft of the Federal law, offering the Supreme court of the Russian Federation, it is planned to prohibit contractual jurisdiction. The only exception will be cases involving foreign persons. Ban Treaty jurisdiction in the procedural legislation of the Russian Federation will allow to unload the courts of Moscow region and Moscow, as well as the courts of St. Petersburg. In addition, the prohibition of contractual jurisdiction will not allow unscrupulous banks unilaterally in the loan agreement to impose choice of forum in a dispute at the location of the Bank.