NEWS FROM ARZINGER LAW FIRM

Dispute resolution over a cup of coffee in Lviv

To discuss problematical aspects of professional ethics in arbitration the issue, which is so much important for Ukrainian arbitration professionals, Ukrainian Bar Association (UBA), Ukrainian Arbitration Association (UAA) and Arzinger Law Office held a non-standard format event entitled “Dispute Resolution over a cup of coffee: Discussing professional ethics in arbitration” on February 15 this year in Lviv.

Opening the event Volodymyr Yaremko, Associate at Arzinger (Lviv), Head of UBA Lviv Branch stressed: “Common understanding and observance of the rules of professional ethics by parties’ representatives and by arbitrators are vital for the proper development of arbitration in Ukraine. Otherwise, arbitration would lose its peculiar benefits and would not differ from litigation in Ukraine, which shows more than enough cases of abuse of rights. This event is a great opportunity to reach a mutual understanding as to the "fair play rules”.

Natalia Petryk, lawyer at the Arbitration Institute of the Stockholm Chamber of Commerce added that it is the debate and informal brain storming that the most complex problems are solved through. “From this point of view, the Lviv workshop fully justifies its goal”.

Tetyana Slipachuk, President of UAA, partner and head of the international arbitration practice at the law firm Sayenko Kharenko, thanked Arzinger and the Bar Association of Ukraine for initiating the event on such an important but often underestimated topic as ethics in arbitration. In particular, she noted that one of the key objectives of the Ukrainian Arbitration Association was to promote and spread the best standards of ethics in arbitration.

"This is important not only in terms of educating young lawyers practicing arbitration, but also in terms of our image internationally, namely, how we look sitting at one table with other jurisdictions,” Tetyana said.

In his welcoming address Markian Malskyy, Partner, Head of Alternative Dispute Resolution practice and of the West Ukrainian Branch of Arzinger, pointed out: “It is very important that this event has sparked the market’s great interest, as it discussed the fundamental issues of arbitration. I am sure that the initiative is a positive step to support Ukraine's image as a friendly jurisdiction for arbitration. Also, Arzinger was very pleased to host the event, since arbitration is one of our firm’s key practices”.

The first session entitled “Professional ethics of parties’ representatives in arbitration” included presentations by Tetyana Slipachuk (Sayenko Kharenko), Julia Chernykh (Arbitrade), Oleg Beketov (AstapovLawyers), Ksenia Koryukalova (Egorov, Puginsky, Afanasiev & Partners) and Dmytro Shemelin (Grischenko and Partners). Markian Malskyy (Arzinger) moderated the session.

Speakers in the second panel “Arbitration is as Good as the Arbitrators: Requirements for Arbitrators’ Professionalism, Ethics and Confidentiality” were representatives of the Arbitration Institute of the Stockholm Chamber of Commerce (Natalia Petryk), Arbitration Court at Nowy Tomyśl Chamber of Commerce (Włodzimierz Brych) and Lviv Chamber of Commerce and Industry (Hartmut Rank). The discussion was moderated by Taras Shepel, Chairman of the Arbitration Court at ICC Ukraine.

The event ended with a cozy buffet to the strains of a piano, which created relaxed atmosphere for socializing and networking.

To view photos from the event follow the link.

Managing Partner at Arzinger Spoke about Ethics of the Competition on the Legal Market at the Main Legal Event in Ukraine

On 22 February 2013 the IX Annual Legal Forum “Development of the Ukrainian Legal Market 2013” took place. The importance of this event for the legal market players in Ukraine grows each year. Timur Bondaryev, Managing Partner at Arzinger Law Office, presented his report “Ethical Issues of Competition on the Legal Market”.

In his speech Mr. Bondaryev noted that the problem of unfair competition on the legal market becomes even more pressing and requires establishment of unified fair competition rules.
In his opinion, ethical issues of competition on the legal market play an important role.  Speaking about unfair competition he named five key problems: price damping, solicitation of employees; defamation of competitors; bid rigging and conflict of interest.

In particular, he pointed out that law firms face a problem of formal bid participation. Moreover, inexperienced in working with law firms clients fall into hands of incompetent companies whose unqualified legal practice throws bad light at all firms working in this field.

According to Mr. Bondaryev, a possible solution would be to establish unified rules for completion on the legal market.

“As a solution, as a possibility, may be something like promotion rules on the pharmaceutical market. I exaggerate, of course... But we understand that, for instance, in Austria, the Bar imposes severe punishments and one of the leading law firms has lost its license for some super aggressive and ambiguous advertisement of competitors. I cannot exclude that someday we will come to this point as well and our self-regulating organization will help us to find a solution”, commented the attorney-at-law.

Maksym Cherkasenko discussed the bills on LLC

On February 20, 2013, the Commercial Law Center and the Corporate Law Committee of the Bar Association of Ukraine held a joint roundtable “Initiatives to reform the law on limited and additional liability companies” to discuss the controversial situation with the current regulation of the issue in question. Thus, there are two bills on LLC and ALC, No.2011 and No. 2011-1, registered with the Parliament today.

Maksym Cherkasenko, Partner at Arzinger with the main specialization in corporate law took an active part in the roundtable discussion. In particular, he attracted the participants’ special attention to shareholders’ agreements. “Unless we address this issue properly, Ukrainian companies will be further structured in foreign jurisdictions,” Maxim Cherkasenko said.

Volodymyr Yaremko spoke to students about peculiarities of disputes involving non-residents
On 23-24 February 2013 the long-awaited V Ukrainian Economic Court Procedure School took place in Lviv at the Lviv National Franko University. This event was organized by the Students’ League of the Ukrainian Bar Association. This time the School was attended by representatives from all corners of Ukraine.

Volodymyr Yaremko, Associate at Arzinger Law Office, spoke about one of the most interesting topics: “Economic Disputes Involving Non-Residents: Peculiarities and Resolution”. Volodymyr covered the following issues: possibility of considering cases with foreign element in Ukrainian courts, sources of legal regulation of this issue, enforcement of the decision, practical aspects of the court case consideration enabling actual enforcement of court decisions, injunction, and issue of court orders. The participants enjoyed, especially, a supply contract case study. With great enthusiasm they proposed different solutions, in particular regarding applicable law, place of jurisdiction, documents confirming the supply etc.