In November 2009, we reported on three decisions of the 9th Appellate Court (Moscow District) regarding similar claims against ZAO Factoring Company Eurokommerz on the validity of so-called "hybrid" dispute resolution clauses (see Legal update, Hybrid dispute resolution clauses: green light?). Those decisions have now been challenged before the Federal Arbitration Court of Moscow District (the Court of Cassation).

In December 2009 and January 2010, the Court of Cassation upheld all three decisions of the 9th Appellate Court and some other similar decisions. The Court of Cassation therefore clearly recognised the right of the relevant parties to exercise their free choice to either litigate or arbitrate under the contractual hybrid dispute resolution clause. The court stated that the arbitration clause did not prevent the claimant from bringing the case before the state courts since the contract provided for such an alternative.

The decisions of the Court of Cassation will be a strong precedent for, at least, the Moscow district courts. Parties unsatisfied with the decisions will have the right to challenge them before the RF Supreme Arbitration Court, although their chances of success are very remote.