Legal Question in Business Law in Russian Federation

Can a lawsuit be filed in US

I'm doing business in Russia with 2 companies as shareholders. 1 shareholder are: US investors thru a company registered in Bahamas. The other shareholder is the company is in Russia where the business takes place. Can a civil lawsuit or any other type of lawsuit be filed in US due to any nature of this business if the shareholders have a dispute? Or would the lawsuit need to be filed in Bahamas where the company is registered or in the country where the business takes place?

Asked on 8/19/07, 6:34 pm

2 Answers from Attorneys

Theresa Petrey The Law Office of Theresa Petrey

Re: Can a lawsuit be filed in US

Written contract? Does it have a venue clause, dipute resolution clause, remedies?

Is your transaction governed by trade treaties? If so, there may be provisions withing the treaties for venue, dispute resolution, and remedies.

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Answered on 8/24/07, 12:35 am

Susan Beecher Susan L. Beecher, Atty at Law

Re: Can a lawsuit be filed in US

No one else is answering so I'll take a stab.

On the face of it, based on the facts that you have told me, you probably cannot bring suit in the U.S., since the investor is a Bahamas based company.

However, the exceptions are always in the details, and an attorney could not say absolutely no U.S. jurisdiction without knowing some more details such as what the company is doing and, even more important, what the specific dispute is about.

There is a second question, and that is, is there a benefit to adjudicating the case in the US, even if you can? If the opposing party is in Russia, and all of his/her/their/its assets are in Russia, a judgment here may not be worth much. And you would not be able to enforce the judgment in Russia.

If there is a lot of money involved, I urge you to sit down with an attorney who specializes in this kind of transaction.

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Answered on 8/20/07, 7:36 pm

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