ARMENIA Law and Practice Contributed by: Mesrop Manukyan, Maria Petrosyan, Grigor Grigoryan and Anahit Sargsyan, MB Legal
before initiating litigation. This multi-tiered approach encourages settlement at the earliest possible stage. 1.3 Key Dispute Resolution Trends A fundamental trend in Armenia is the digitalisation of the judiciary through the implementation of the Elec- tronic System for Dispute Resolution. This system has transformed legal practice by allowing electronic filing of lawsuits, digital submission of evidence, and auto- mated judicial notifications. For many legal entities and advocates, the use of this system is now manda- tory, aiming to reduce delays and increase the trans- parency of the litigation process. There is also a significant trend towards the strength- ening of specialised courts. The expansion of the Anti- Corruption Court to handle civil cases involving the recovery of illicit assets demonstrates a move towards high-stakes, specialised adjudication. Similarly, the continuous modernisation of the Bankruptcy Court aims to improve the efficiency of insolvency proceed- ings and business rehabilitation. Furthermore, the mainstreaming of ADR through man- datory mediation requirements in specific categories of cases is a key policy development. The State is actively promoting mediation to alleviate the heavy workload of the courts and to foster a culture of col- laborative conflict resolution. This is coupled with the emergence of online mediation and digital ADR plat- forms to improve accessibility. The general limitation period for bringing a civil claim in Armenia is three years, during which an individual may seek judicial protection for a violated right. This period applies to the majority of commercial claims unless a specific law provides for a different time- frame. The limitation period begins to run from the day the person knew or should have known about the violation of their right. Shorter limitation periods apply to specific types of disputes. For example, claims related to contracts of carriage (freight) are subject to a one-year limitation 2. Litigation 2.1 Limitation Periods
period. In the context of employment law, specific deadlines are set for challenging individual legal acts or disciplinary actions. Additionally, claims for the recovery of damages for harm caused to life or health have no limitation period, although recovery for past periods is limited to three years prior to the filing of the lawsuit. In certain cases – particularly those involving the application of the legal consequences of invalidity to voidable transactions – a prolonged limitation period of ten years is established. The running of the limita- tion period can be suspended under certain circum- stances, such as the occurrence of an “uncontrollable force” or if a party initiates a formal mediation process. If a party misses a limitation period for a valid reason, the court may, upon a reasoned motion, restore the deadline to ensure access to justice. However, the expiry of the limitation period is a mandatory ground for the court to deny the claim if the opposing party invokes it as a defence before the trial concludes. 2.2 Court Structure Armenia possesses a three-tiered judicial system composed of First Instance Courts, Courts of Appeal, and the Court of Cassation. The First Instance Courts are the primary level of adju- dication and include courts of general jurisdiction as well as specialised courts such as the Bankruptcy Court and the Anti-Corruption Court. These courts handle the factual investigation and initial legal deter- mination of disputes. Appellate review is conducted by the Civil Court of Appeal or the Anti-Corruption Court of Appeal, depending on the subject matter. The Court of Appeal reviews cases based on the existing record and can reverse or modify lower court decisions if there was a violation of substantive or procedural law. It generally does not hear new evidence unless a party proves that it was impossible to present it in the first instance. The final level of review is the Court of Cassation, which consists of several specialised chambers, including a Civil Chamber and an Anti-Corruption Chamber. The Court of Cassation does not re-examine facts but focuses on the uniform application of the law and the
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