Irina Akimova, Of Counsel and Head of the Antitrust Practice and Dmitry Gavrilenko, Senior Associate of the Antitrust Practice, once again took part in preparing the Thomson Reuters international legal guide. The guide is devoted to reviewing the institute of class action in various jurisdictions (Class Actions: A Global Guide From Practical Law). Our colleagues prepared a section of the guide that contains a description of the institute of class action in Russia.

The guide could be useful for practicing lawyers and businessmen who wish to learn about the features of class action in a particular country.

The publication contains information on the current state of development of this institution, as well as the latest trends and legislative initiatives in this area. While class action is not so widespread in our country, it has great potential for development, primarily in the area of ​​competition law.

 

Class/collective actions in Russia: overview

Irina Akimova and Dmitry Gavrilenko

Capital Legal Services

1. What is the definition of class/collective actions in your jurisdiction? Are they popular and what are the current trends?

Definition of class/collective actions

There is not a concept of class or collective action as such. However, there are legal mechanisms that can be and are used to protect a group of persons, which are initially aimed at simplifying the conduct of proceedings for judges. It allows claims to be considered in a single process where they are similar in substance.

There is no direct definition of this mechanism in the legislation. Based on the interpretation of the rules, it can be formulated as "the right of a person to appeal in court to protect violated or disputed rights and legitimate interests of other persons that are parties to the same relations".

Use of class/collective actions

Currently, the use of class action is not widespread. This is due to the imperfection of the mechanism for the use of class action. Considering that these mechanisms are primarily designed to facilitate the process for the judges, they have not been popular among the public.

Current trends

Currently, there are a few class or collective actions against government agencies, financial companies, banks, real estate companies and pharmacy chains, as well as collective actions that are complaints of minority shareholders.

Most frequently, a class action is used in:

• Corporate disputes.
• Disputes related to activities of professional participants of the securities market.

Class actions are commonly used for both:

• Shareholder lawsuits.
• Consumer claims.

In recent years, special non-governmental organisations have emerged and provided information on the possible use of class actions to the public. Through these organisations, a group of claimants can be formed for filing a class or collective action. Services of such organisations are not popular with consumers yet.

Abuse of dominant position can be qualified only in case of a violation of rights of an indefinite number of consumers. This could lead to the development of a class actions mechanism.

2. What are the principal sources of law and regulations relating to class/collective actions? What are the different mechanisms for bringing a class/collective action?

Principal sources of law

The main sources of law are the:

• Civil Code.
• Civil Procedural Code.
• Arbitration Procedural Code.
• Federal Law No.135-FZ on protection of competition dated 26 July 2006.
• Law No.2300-1 on consumer protection dated 7 February 1992.
• Federal Law No.208-FZ on joint stock companies dated 26 December 1995.

Principal institutions

The Federal Service for Supervision of Consumer Rights Protection and Human Welfare and the Federal Anti-Trust Service can:

• Examine complaints from consumers.
• Register violations.
• Impose a fine.

The civil courts and courts of arbitration can examine cases on damages in favour of consumers.

The public prosecutor can apply to the court to protect consumers.

Different mechanisms

Claims by shareholders are combined when filing a lawsuit in court.

For consumer protection, consumers generally turn to the state authorities regarding the violation. Consumers then turn to the courts to recover damages. However, consumers can also go directly to court, but then the burden of proof is on the consumers.

3. Are class/collective actions permitted/used in all areas of law, or only in specific areas?

Product liability

Class or collective actions are permitted and used for product liability claims.

Environmental law

Class or collective actions are permitted and used in environmental law.

Competition law

Class or collective actions are permitted and used in competition law.

Pensions disputes

Class or collective actions are permitted and used in pensions disputes.

Financial services: consumer redress

Class or collective actions are permitted and used for financial services claims.

Other areas of law/policy

Class and collective actions are possible for:

• Corporate disputes.
• Disputes related to activities of professional participants of the securities market.
• Consumer protection law claims.

A class or collective action is not possible in criminal proceedings.

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Irina Akimova  Of Counsel,  Head of Antitrust Practice                              Moscow   iakimova@cls.ru   Tel.: +7 (495) 970 1090

Dmitry Gavrilenko   Senior Associate                   Moscow    dgavrilenko@cls.ru    Tel.: +7 (495) 970 1090

Professional qualifications. Russia and CIS, lawyer Areas of practice. Anti-trust law; financial markets. Non-professional qualifications. Major in Law, Moscow University for Psychology and Social Science, 2000 Recent transactions Advising the following: Leading automobile dealers in the course of drafting contracts in new business areas. A leading manufacturer of commercial transport equipment in the course of setting up a dealership network. Major Russian and foreign companies on issues of structuring and approval of global transactions. A major food manufacturer in the course of developing commercial and bonus policies and distribution agreements. A major pharmaceutical company after the Federal Anti-Trust Service initiated several cases against the company alleging a cartel agreement and violation of anti-trust law. An international company providing medical services, on issues of unfair competition by competitors. A major international pharmaceutical company that the Federal Anti-Trust Service suspected of controlling the activities of its contractors. A Russian company that is a natural monopoly, on issues of determining the geographical boundaries of a market. Major international manufacturer of office equipment, on issues of interacting with a dealership network. An international manufacturer of consumer and pharmaceutical products on compliance of an advertising campaign for a medical equipment item with Russian legislation. An international manufacturer of plumbing equipment in relation to unlawful use of facilities that are its intellectual property. A major European manufacturer of personal hygiene goods on compliance of a distribution agreement with the Russian anti-trust legislation. An agent of a major international sea and ocean shipping operator in the course of an unscheduled inspection of the Federal Anti-Trust Service. A major Japanese automobile corporation on analysing the commercial policies on interaction with service dealers. Languages. Russian, English Professional associations/memberships. Member of Competition Support; member of Supporting Competition in CIS Countries.