Case Law
Russia / 12 December 2011 / Russia, Высший Арбитражный Суд Российской Федерации (Highest Arbitrazh Court of the Russian Federation) / Tabellion Limited v Andrei Georgievich Ishuk (other parties participating in the proceedings: Federalevel Holdings Limited; Irina Aleksandrovna Ishuk) / VAS - 15654/11
Country | Russia |
Court | Russia, Высший Арбитражный Суд Российской Федерации (Highest Arbitrazh Court of the Russian Federation) |
Date | 12 December 2011 |
Parties | Tabellion Limited v Andrei Georgievich Ishuk (other parties participating in the proceedings: Federalevel Holdings Limited; Irina Aleksandrovna Ishuk) |
Case number | VAS - 15654/11 |
Applicable NYC Provisions | V | V(2)(b) |
Source |
http://kad.arbitr.ru (register of decisions of the RF arbitrazh courts) |
Languages | English |
Summary | On 6 December 2007, Tabellion Limited (“Tabellion”) and Federalevel Holdings Limited (“Federalevel”) entered into a share purchase agreement with a put option (the “Contract”). At the same time, Andrei Georgievich Ishuk (“Ishuk”) and Tabellion entered into a guarantee agreement, whereby Ishuk provided Tabellion with a personal guarantee in respect of all of Federalevel’s contractual liabilities (the “Guarantee”). After Federalevel and Ishuk defaulted under the Contract and the Guarantee, respectively, Tabellion filed a request for arbitration before the London Court of International Arbitration. On 3 December 2009, the arbitral tribunal granted the relief sought by Tabellion by ordering Ishuk to immediately (i) pay or secure payment by Federalevel of the price of the put option and (ii) pay in full Tabellion’s arbitration costs and interest. The Arbitrazh Court of the Samara Region (court of first instance) rejected Tabellion’s application for recognition and enforcement of the arbitral award. The Federal Arbitrazh Court for the Volga Region (court of cassation) overturned the ruling of the court of first instance and issued a writ of enforcement. Ishuk sought a supervisory review before the Highest Arbitrazh Court of the Russian Federation requesting that the decision of the cassation court be overturned on the grounds that it violated universally recognised principles and norms of international law and was contrary to the courts’ uniform interpretation and application of the law. Ishuk contended that his spouse had not been a party to the arbitration proceedings despite the fact that the arbitral award would be enforced against property belonging to her. The Highest Arbitrazh Court of the Russian Federation refused to refer the case to the Presidium for supervisory review and upheld the ruling of the cassation court. The Highest Arbitrazh Court endorsed the reasoning of the Federal Arbitrazh Court providing that the arbitral award was not contrary to public policy under Article V(2)(b) NYC or under Russian domestic law. In particular, the Highest Arbitrazh Court noted that Russian family law allowed Ishuk to separate his share of property commonly held with his spouse for the purpose of satisfying his creditors’ claims. On this basis, the Highest Arbitrazh Court held that there was no ground for modifying or overturning the decision of the Federal Arbitrazh Court and dismissed the petition for supervisory review. |
Attachment (2)
Original Language Adobe Acrobat PDF |
Unofficial Translation Adobe Acrobat PDF |