Home page Media Legal alerts Joint and several liability for multiple companies of one group due to one company’s failure to fulfill its obligations under an agreement

Joint and several liability for multiple companies of one group due to one company’s failure to fulfill its obligations under an agreement

The Moscow City Arbitration Court has formed a new approach on bringing persons to joint and several liability: now, it is possible to recover a debt under a contract not only from the foreign company which is a party to the contract, but also from a Russian company which is part of the same group as the foreign company. A number of other similar decisions have also recently been rendered. Previously, such examples have not been seen in Russian court practice, and a case could be made for the occurrence of judicial law-making in this regard (independent of whether the courts’ approach is correct or not).

Our Dispute Resolution practice experts Evgeny Oreshin and Galiya Balgabaeva analyze the courts' new approach to the joint and several recovery of debt.

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