Class action lawsuits in arbitration proceedings

A new chapter 22.2 «Investigation of cases on Protection of Rights and Legal Interests of group of people», was entered to the Civil Procedural Code of the RF by the Federal Law as of 18.07.2019 №191-FL. That makes it possible for individuals and companies to apply to the court for protection of rights and legal interests of group of persons. This application should be complied by set of conditions:

• common defendant for every member of a group;
• the same rights and legal interests should be judicial matter for members of a group;
• rights of members of the group and obligations of a defendant are determined by identical factual situation;
• all members of the group apply united method of the rights protection;
• joining the application of more than 20 persons on the beginning of court hearing.

Besides, amendments were made to the Arbitration Procedural Code of the RF. In particular, to the article 225.10, that regulates class action lawsuits in arbitration proceedings.

It is provided by the amendments, that joining class action lawsuit can be arranged by written application to corresponding party or application to the court, if integration is carried out after start of proceeding on class action lawsuit. It is possible to access to group action lawsuit before the beginning of court hearing. It can be done via completion of the corresponding form on the web site of arbitration court or with the use of service «My arbitrator».

Person performing interests of the group and joined to the claim on protection of group interests, has right to sign notarized agreement, defining rules of incurring legal expenses. It concerns both civil and arbitration proceedings. Matter of change or termination of such group agreements is regarded only through court proceedings at the place of class action lawsuit proceeding.

Amendments will come into force since October 1.