New rules for reimbursement of costs for legal services are opening up broad prospects for recovery of debt of your clients in court. The Russian Supreme Court ruling of 21.01.2016 clarifies the procedure for reimbursement of costs incurred for court proceedings, and it is now easier for the winning party to a court case to get its costs for legal services reimbursed.

In particular, the winning party to a court case may now demand the reimbursement of some pre-trial costs (such as, for example, the costs incurred to legalize foreign documents or issue court power of attorney), as well as get the costs associated with mandatory pre-trial dispute resolution procedure reimbursed (for example, legal services and costs incurred to send a mandatory claim letter to a debtor, to appeal against decisions from tax authorities). And, if some costs are actually incurred after adoption of the final court decision (for example, accommodation for a legal representative or legal services are paid after settlement of the case), then the winning party to the court case will still be entitled to demand their reimbursement.

Court costs may be included in lawsuits and reimbursed upon adoption of a court decision. Alternatively, a separate application may be filed once all stages of legal proceedings are completed, and in such case, the additional expenses for legal services incurred for filing and examination of the application for reimbursement of court costs may be included in the total amount of reimbursable court costs.

Awara recommends in the current economic climate paying close attention to debt recovery issues. Awara legal professionals have successful experience in representation of clients’ interests in court as well as in reimbursement of court costs. We will be happy to schedule a meeting with Awara Group’s experts to discuss the recovery of any outstanding payments you may have.

Eva Hua
Consultant
eva.hua@awaragroup.com

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