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Business Correspondence / 31-39 / block 33 CLAIMS AND COMPLAINTS.doc
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CLAIMS 1

CLAIMS AND COMPLAINTS

FOCUS 1. Read and discuss the lead-in and the Arbitration Clause.

LEAD-IN

It often happens that one of the parties to the contract considers that the other party has infringed the terms of the contract. In such cases the dissatisfied party, (which is called a claimant), may think it necessary to send the other party a letter of complaint which often contains a claim, i.e. a demand for something to which the sender of the letter, in his opinion, has a right as, for instance, a claim for damages or for a reduction in the price etc. Complaints and claims may arise in connection with inferior quality of the goods, late delivery or non-delivery of the goods, transportation, insurance and storage of the goods and in many other cases.

The Sellers, for example, may hold the Buyers responsible for omitting to give transport instructions in time, and the Buyers may make a claim on the Sellers for damage to the goods caused by insufficient packing. To have to complain is annoying, but to complain without good reason will also annoy your correspondent. If you complain make sure you get your facts right. And if you have to answer an unjustified complaint, be polite and restrained.

Remember that complaints are not accusations; they are requests to correct mistakes. Therefore, write calmly; use an impersonal tone, clearly presenting all the relevant information.

Very often the parties (claimant and respondent) agree upon an amicable settlement of the claim in question. That means that the claim is considered, admitted and satisfied. Then, the other party withdraws or abandons the claim. If, however, an amicable settlement is not arrived at, i.e. the claim is declined, the dispute is settled by a court of law or, which is more often the case, by arbitration.

2

Contracts usually stipulate that in case of arbitration each party should appoint an arbitrator, and the two arbitrators have to appoint an umpire whose award is final and binding upon both parties.

When the parties refer their dispute to the Arbitration Court at the Chamber of Commerce and Industry of Russia, each party chooses its arbitrator from among the panel of the Court. These two Arbitrators appoint an Umpire. By mutual consent of the parties, the settlement of the case may, in exceptional cases, be entrusted to a sole Arbitrator.

Arbitration clauses in some contracts provide for all disputes and differences to be settled by arbitration held in a third country, while some other contracts provide for arbitration in the country of the respondent party. The claimant submits the dispute for arbitration by filing Points of Claim with the Arbitration Court. On filing Points of Claim the claimant shall make payment in advance on account of the fee to cover the expenses of the arbitration proceedings. Upon the request of the claimant, the President of the Arbitration Court may deal with the security for the claim.

Contracts concluded in accordance with the Rules of different trade associations provide for arbitration to be held in conformity with these Rules.

An example of a clause in a contract providing for arbitration in a third country

Any dispute or difference arising out of or in connection with the present contract is to be settled, without recourse to Courts of Law, by an Arbitration Tribunal in Stockholm, Sweden.

The Arbitration Tribunal shall consist of two Arbitrators and an Umpire.

The party giving notice of arbitration shall notify the other party by registered letter stating the question at issue and giving the name and address of its Arbitrator. Within … days of receipt of such a letter, the other party shall inform the first party, also by registered letter, of the name and address of its Arbitrator, and if it does not do so, its Arbitrator shall be appointed by the President of the Chamber of Commerce in Stockholm at the request of the party giving notice of arbitration. Hence, the appointment is left to the discretion of the President.

The two arbitrators are to choose an Umpire within … days of the appointment of the second Arbitrator. Should the Arbitrators fail to agree upon an Umpire, the Umpire shall be appointed by the President of the Chamber of Commerce in Stockholm, Sweden, within … days after receipt in Stockholm of such an application made by either of the parties.

The award shall be issued on the basis of the present contract and legal regulations to be used in accordance with the principles of international law.

- 2 -

The award shall state the reasons for the decision, indicate the composition of the Arbitration Tribunal, the date and place of the decision and the allocation of costs and expenses of the arbitration between the parties.

Both parties shall accept the award of the Arbitration Tribunal as final and binding upon them.

Focus 2. Comprehension questions.

? What is a claim?

? In what case may a claim arise?

? In what case are the parties to the contract entitled to reject a claim?

? What is a Letter of Complaint?

? What is an unjustified complaint?

? What does an amicable settlement of the claim imply?

? What are Points of Claim?

? What documents are needed for filing Points of Claim with Arbitration Court?

? Which party should appoint an Arbitrator and an Umpire?

? Why are the cases entrusted to a sole Arbitrator?

? Who covers the expenses of the arbitration proceedings?

? Can the parties to a contract apply to Courts of Law?

? If the parties to a claim cannot appoint arbitrators whose discretion is it then?

? Do the parties to the contract have the right to submit the matter to the Court of Appeal?

FOCUS 3. Study the notes, writing patterns and vocabulary.

1. The Arbitration vs arbitration – написание с большой буквы и, как правило, с определенным артиклем the Arbitration означает судебную инстанцию, проводящую арбитраж, например Арбитражный суд. Слово arbitration подразумевает обычно процесс арбитражного производства.

WRITING PATTERNS

1.

Hereby we make a claim on you for damages.

Настоящим мы предъявляем Вам претензию о возмещении убытков.

2.

The claimant and the respondent have come to an amicable settlement of the claim in question.

Истец и ответчик пришли к дружественному урегулированию вышеупомянутого спора.

3.

We intend to refer the dispute for consideration to the Arbitration Court at the Chamber of Commerce and Industry of Russia.

Мы намерены передать спор на рассмотрение в Арбитражный Суд при ТПП России.

4.

The decision/award of the arbitration is final and binding on both parties.

Решение арбитража является окончательным и обязательным для обеих сторон.

5.

No claim may arise out of or in connection with this clause of the contract.

Истец не имеет права предъявлять претензию, вытекающую из или в связи с данным пунктом контракта.

6.

The appointment of the umpire is left to the discretion of the President of the Arbitration Court.

Назначение суперарбитра является прерогативой/остается на усмотрение председателя Арбитражного суда.

7.

On filing Points of Claim the claimant shall make payment in advance on account of the fee to cover the expenses of the arbitration proceedings.

По представлении искового заявления истец должен внести авансовый платеж в счет покрытия расходов на ведение арбитражного производства.

8.

The party to the contract has infringed the terms of the contract.

Эта сторона контракта нарушила условия контракта.

9.

Complaints and claims may arise in connection with inferior quality, late delivery or non-delivery and in many other cases.

Жалобы и претензии могут возникнуть в связи с низким качеством товара, недопоставкой или непоставкой товара, а также во многих других случаях.

10.

The Seller holds the Buyer responsible for…

Продавец считает Покупателя ответственным за…

11.

The claimant may withdraw/abandon the claim.

Истец может отозвать претензию.

12.

The dispute was settled by arbitration.

Спор был урегулирован в арбитражном порядке.

13.

In case of arbitration each party should appoint an arbitrator.

В случае арбитражного разбирательства каждая сторона контракта должна назначить своего арбитра.

14.

An umpire’s decision is final and binding upon both parties.

Решение суперарбитра является окончательным и обязательным для обеих сторон контракта.

15.

Arbitration clauses provide for all disputes and differences to be settled by arbitration held…

Арбитражные оговорки предусматривают разрешение споров и разногласий в арбитражном порядке в…

16.

The claimant submits the disputes for arbitration by filing Points of Claim with…

Истец передает спор в арбитраж путем представления искового заявления в…